Accurate veterinary practice valuations require insight into the veterinary profession, financial expertise, and business intelligence. A professional veterinary appraisal uses sophisticated, industry-standard methodology.
At Simmons, we use the most up-to-date standards for practice appraisal and are continually involved in the further development and refinement of those standards.
Many veterinary practice brokers, whether large and small, offer a fast, free valuation of your practice. Unfortunately, an accurate valuation takes the valuable time and experience of an expert.
The advisors at Simmons take the time to perform a thorough and detailed valuation. We exclusively focus on the veterinary industry and have over four decades of experience brokering veterinary practice transitions. This level of immersion gives us the perspective necessary to provide accurate and detailed valuations.
We take pride in our sterling reputation for providing accurate veterinary practice valuations. In fact, Simmons has more credentialed business appraisers than any other firm.
Not sure if you’re ready? If you’re thinking of selling but aren’t prepared to undertake a full valuation, we’re still here to answer any questions you may have. Contact your Simmons advisor for a complimentary consultation.
At a minimum, your practice should be appraised by a veterinary specific appraiser and broker at least 2 full tax years prior to being ready to sell. Ideally, though, one should have their practice appraised every 3-5 years for management purposes. Management appraisals inform you of your practice’s profitability and where you may be losing money. Is the supply expense excessive? Are your staff costs in line with industry norms? Are you charging enough to cover all your costs? Other reasons for appraisals are for partnership buy-in or buy-out, divorce settlements, and pricing the practice to sell.
Ideally every 3-5 years throughout your ownership career.
You pay for what you get. A free “appraisal” is typically not a true valuation but a cash flow or financing feasibility analysis. A free appraisal will be a quick analysis and not consider all the moving parts necessary to appropriately value a practice. It’s sort of like a client relying on “Dr. Google” rather than seeking professional veterinary advice or getting your oil changed at a quick lube rather than a full-service auto mechanic shop. Ultimately, a firm offering a free appraisal has one goal and that is to list your practice. But if they price it too high and lose all interested buyers at the outset, you lose credibility as a seller and it will only take longer to sell.
Furthermore, the free appraisal does not consider other factors beyond cash flow that could make or break the deal. A formal practice appraisal by an experienced appraiser and broker will uncover any potential pitfalls you may have in selling your practice and will address those during the appraisal. In short, a practice appraisal goes far beyond slapping a price on the practice.
A general practice is typically appraised on an income (profits) approach, meaning that profits are determined and capitalized to convert to a value. I.e., the value is in the profit. However, the price is largely determined by the adjusted net cash flow. (It’s getting a bit deep here. Please call us for further explanation.) Practice value is calculated by performing a 2-3 year historical review to determine true adjusted profit (aka earnings or EBITDA). An experienced and qualified veterinary practice appraiser will know what adjustments to make.
Once the adjusted profit is determined, the appraiser will capitalize the profit by considering various risk factors for a typical buyer. A capitalization rate is the inverse of a multiple. Risk factors are considered by the appraiser to determine how easily a new owner can continue current profits. These considerations include practice reputation, facility and equipment condition, types of services offered, transferability of goodwill, practice saturation in the market, and many others. If all else is equal, a riskier investment will not appraise as high as a less risky investment.
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Accurate veterinary practice valuations require insight into the veterinary profession, financial expertise, and business intelligence. A professional veterinary appraisal uses sophisticated, industry-standard methodology.
At Simmons, we use the most up-to-date standards for practice appraisal and are continually involved in the further development and refinement of those standards.
Many veterinary practice brokers, whether large and small, offer a fast, free valuation of your practice. Unfortunately, an accurate valuation takes the valuable time and experience of an expert.
The advisors at Simmons take the time to perform a thorough and detailed valuation. We exclusively focus on the veterinary industry and have over four decades of experience brokering veterinary practice transitions. This level of immersion gives us the perspective necessary to provide accurate and detailed valuations.
We take pride in our sterling reputation for providing accurate veterinary practice valuations. In fact, Simmons has more credentialed business appraisers than any other firm.
Not sure if you’re ready? If you’re thinking of selling but aren’t prepared to undertake a full valuation, we’re still here to answer any questions you may have. Contact your Simmons advisor for a complimentary consultation.
At a minimum, your practice should be appraised by a veterinary specific appraiser and broker at least 2 full tax years prior to being ready to sell. Ideally, though, one should have their practice appraised every 3-5 years for management purposes. Management appraisals inform you of your practice’s profitability and where you may be losing money. Is the supply expense excessive? Are your staff costs in line with industry norms? Are you charging enough to cover all your costs? Other reasons for appraisals are for partnership buy-in or buy-out, divorce settlements, and pricing the practice to sell.
Ideally every 3-5 years throughout your ownership career.
You pay for what you get. A free “appraisal” is typically not a true valuation but a cash flow or financing feasibility analysis. A free appraisal will be a quick analysis and not consider all the moving parts necessary to appropriately value a practice. It’s sort of like a client relying on “Dr. Google” rather than seeking professional veterinary advice or getting your oil changed at a quick lube rather than a full-service auto mechanic shop. Ultimately, a firm offering a free appraisal has one goal and that is to list your practice. But if they price it too high and lose all interested buyers at the outset, you lose credibility as a seller and it will only take longer to sell.
Furthermore, the free appraisal does not consider other factors beyond cash flow that could make or break the deal. A formal practice appraisal by an experienced appraiser and broker will uncover any potential pitfalls you may have in selling your practice and will address those during the appraisal. In short, a practice appraisal goes far beyond slapping a price on the practice.
A general practice is typically appraised on an income (profits) approach, meaning that profits are determined and capitalized to convert to a value. I.e., the value is in the profit. However, the price is largely determined by the adjusted net cash flow. (It’s getting a bit deep here. Please call us for further explanation.) Practice value is calculated by performing a 2-3 year historical review to determine true adjusted profit (aka earnings or EBITDA). An experienced and qualified veterinary practice appraiser will know what adjustments to make.
Once the adjusted profit is determined, the appraiser will capitalize the profit by considering various risk factors for a typical buyer. A capitalization rate is the inverse of a multiple. Risk factors are considered by the appraiser to determine how easily a new owner can continue current profits. These considerations include practice reputation, facility and equipment condition, types of services offered, transferability of goodwill, practice saturation in the market, and many others. If all else is equal, a riskier investment will not appraise as high as a less risky investment.