What Are the Steps of the Buying Process?
Buying a practice may be the largest, most complex, yet most rewarding financial transaction of your life.
Simmons will lead you through the entire buying process by answering your questions, providing practice valuations, interpreting financial information, handling negotiations and contracts, and introducing you to veterinary-friendly lenders.
Practice Buying in Steps
We guide you through these steps when considering a practice listed with us – although some steps vary if we are representing you in your purchase of a practice not listed with us:
1. Identify a Property
You can review properties listed on our site, note the listing numbers of practices you’d like to consider, and electronically submit the Confidentiality Agreement to the appropriate regional office. We can also send you this agreement by mail or fax.
2. Receive and Review the Practice Profile
Study each aspect of the practices that interest you, from location to financial performance, and determine whether a specific practice will meet your needs.
3. Contact a Lender
Financing the purchase of a veterinary clinic has never been easier than it is today. Often veterinarians can even buy a practice with no money down.
We introduce you to lenders familiar with the veterinary profession. Besides qualifying your credit, the loan application process lets you get additional services from the lender. A lender can provide an independent opinion of the practice’s price, calculate cash flow, determine if the practice price is workable for you, and conclude whether you’ll be able to satisfy the debt and expenses while still taking home a satisfactory, comfortable paycheck. When using a lender recommended by Simmons, you may even be able to apply for the loan with no upfront costs.
4. Schedule an On-Site Visit
Simmons will coordinate a personal tour and meeting with the current owner. We prefer to have the owner show you the practice, as they are in the best position to answer your detailed questions, tell you about their clientele and community, and outline the current vet practice sales philosophy.
5. Obtain Financial Records
We will send you tax returns and financial records from the practice and help you understand every aspect of how your personal net cash flow is determined. We also welcome any input from your accountant.
6. Make Offer
Simmons can provide sample contracts and forms for your attorney to review and customize. We can also recommend attorneys with experience in veterinary practice acquisitions.
7. Agree to Terms
Once you and the seller agree on the practice price and terms, you’ll sign a legally binding contract.
8. Accept Financing
After you’re approved for a loan, the lender will send you a commitment letter outlining the loan’s interest rate and length, as well as the number and amount of payments. Upon your acceptance of the commitment letter, the lender will process your loan.
9. Prepare for Closing
The most challenging part of any sale is usually the point of contract, getting financing together, and orchestrating all closing details among all parties – the buyer, seller, professional advisers for both parties, and the lender.
Unpredictable, unique challenges surface with almost every transaction, but Simmons provides guidance to help make sure no detail is overlooked as you prepare for closing and make your transition into practice ownership.
10. Closing and Transition
Now that you have the keys in hand, Simmons will help with suggestions and checklists to aid in a smooth transition.
If you are ready to take your first steps towards veterinary practice ownership, contact your regional Simmons consultant.
