Exit Strategy Checklist – Preparing Your Veterinary Practice For Sale

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Click here for a printable PDF of this article: Exit Strategy Checklist

 3 years before putting your veterinary practice on the market:

  • Make quality time to write down your goals; develop a timeline; consider life after practice.
  • Have a baseline practice valuation performed by a competent veterinary practice appraiser. Experience and credentials are critical.
  • Identify areas where improvements can be made in profit and in salability.
  • Manage for revenue and earnings growth.
  • Consider hiring a practice consultant.
  • Take note of any potential practice buyers.
  • Take an active role in the practice; begin delegating management responsibilities to key staff.
  • Set up emergency rotation or referral clinic (most buyers do not want to take after-hours calls).
  • Make sure there are no environmental concerns (buried gas tanks, X-ray chemicals, etc.).
  • Resolve any real estate zoning compliance issues which might impact transfer.

1 year before putting your practice on the market:

  • Clean facility thoroughly, repair cosmetic damages, paint, landscape, etc.
  • Upgrade practice to current standards (imaging, computer management system, etc.)
  • Secure assignable, non-compete agreements with associates.
  • Ensure any facility lease has a life of at least 5 years, is renewable, and transferable.
  • Check equipment leases for pre-payment penalties (usually, they are paid-off at closing). Consider buying, rather than leasing, any equipment needed now.
  • Examine your own financial needs following the sale. Work with a financial planner to ensure you can afford to sell at this time.
  • Order a commercial real estate appraisal, survey and review zoning compliance.
  • Prepare practice records for buyer’s review–financials, contracts, employee records, etc.
  • Compile inventory and equipment lists.
  • Have a competent broker or marketing expert review your practice and current market conditions

Selling a veterinary practice is often the largest financial transaction made during a doctor‘s lifetime and involves much more than just setting a price.

Helping owners develop and execute a well-thought exit strategy in advance of the anticipated time of sale is an integral aspect of the professional practice brokers of Simmons. Our goal is to help you transfer a practice of maximum value at a price that is fair and equitable to both the buyer and seller.

This article was originally posted on www.simmonsinc.com. Any reproduction on any other site is prohibited and a violation of copyright laws.
Picture of Simmons & Associates

Simmons & Associates

Rooted in a deep understanding of the veterinary market, Simmons offers insights and strategic guidance that ensures both buyers and sellers make informed decisions. Their team of experts, with backgrounds in both veterinary care and business, bring an unparalleled depth of knowledge to every engagement.

Picture of Simmons & Associates

Simmons & Associates

Rooted in a deep understanding of the veterinary market, Simmons offers insights and strategic guidance that ensures both buyers and sellers make informed decisions. Their team of experts, with backgrounds in both veterinary care and business, bring an unparalleled depth of knowledge to every engagement.

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