Total Practice Solutions Group
When selling your practice, the Accounts Receivable (AR) can be an issue. As a rule, AR goes with the practice. If you have a high AR, try to reduce the amount prior to selling your practice in order for a smoother transition.
<April 15, 2019 in Seller Articles, Seller FAQ Leave a comment
If you are considering selling your practice, but leasing the Real Estate to the buyer of the practice, it is important to determine what liens the Mortgage holder (if there is one) has on the practice. It is not uncommon for the Bank to have a blanket lien on all the assets, not just the building. This situation would prevent the buyer of the practice from obtaining a loan for the acquisition of the practice.
<March 19, 2019 in Business Valuation, Seller Articles, Seller FAQ Leave a comment
Lenders can confidently provide financing for practice goodwill if seller’s have a clean Profit & Loss statement. The best way to achieve a clean Profit & Loss statement is to discontinue paying personal expenses through your business and declare all income on your Business Tax Return. For every dollar you increase in declared net income you will receive four to five dollars in practice value.
<February 14, 2019 in Seller Articles, Seller FAQ Leave a comment
Maintaining growth is vital in getting the best price for your practice. Showing growth on your current P&L minimizes risk for the buyer and allows for better financing. If growth is not maintained during the due diligence phase of closing, owner holdback will be significantly influenced.
<January 15, 2019 in Seller Articles, Seller FAQ Leave a comment
If you are looking to sell your practice or obtain a practice valuation in early 2019, send all your financial information to your CPA as early as you can so your business tax returns can be completed as soon as possible.
<December 17, 2018 in Business Valuation, Seller Articles, Seller FAQ Leave a comment
When considering a corporate sale, make sure to contact your local TPSG representative. They have experience working with these organizations and can provide you with the tools you’ll need to get a higher price.
<November 15, 2018 in Seller Articles, Seller FAQ Leave a comment
Many sellers today are being contacted directly by corporate buyers. They are getting very good offers above what most non-corporate buyers could offer. When receiving offers from corporate buyers, it is best to get a broker to help negotiate the sale. Almost every corporate sale we have been a part of, we have received higher offers for the seller, in excess of any broker fees.
<September 17, 2018 in Seller Articles, Seller FAQ Leave a comment
If you are considering selling your practice within three years, seek advice from a professional sales broker before purchasing or leasing any new equipment.
<August 15, 2018 in Business Valuation, Seller Articles, Seller FAQ Leave a comment
The best time to improve the value of your practice is now. Keep good financial records, report all of your income to maximize the value of your practice, keep your office and equipment well maintained, and continue to grow your practice. It is very important to continue to show growth even after your practice is listed on the market.
<June 14, 2018 in Business Valuation, Seller Articles, Seller FAQ Leave a comment
TPSG’s solid relationships with practice and real estate lenders, as well as our experience and understanding of the veterinary practice industry, strengthens your chances of obtaining 80-100% of purchase price of the practice asset and 85% of the cost of the real estate from the lenders.
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