Executory contracts – Make a list of any ongoing contracts that might obligate the buyer to any payments after the sale, such as yellow pages, software support, janitorial, lab equipment, maintenance, copier maintenance, etc.Include the contact information in the list.Contact the companies to determine if contracts can be transferred, or if they need to continue to be paid while under your (the practice‘s) name and account number.
031 Exchange – If you plan to do a like and kind exchange to defer capital gains realized on the sale of real estate begin to research properties.
Vendors – Contact all drug and supply vendors and have them close your accounts effective on the date of closing.Keep a list of names and numbers to give the buyer so they can more easily open new accounts
Utilities – Contact gas, electricity, water, sewer, trash, phone companies and transfer accounts to buyer.Ask to have any deposits returned.Don‘t forget about your long distance company(s).
Software – Contact computer software vendors to have the license transferred to the buyer.
Charge card machine – Contact your bank and prepare to close this account.Find out if the machine is leased or if you own it.If leased, maybe the buyer would be willing to continue the lease.
Controlled drugs – A proper accounting must be done.These can be transferred to the buyer with the proper forms from the DEA.
Employees – Settle with employees any outstanding wages, vacation pay, sick pay owed.
Signing documents – Make appointment with closing agent to sign.The signing does not need to be done on the day of closing.We recommend that it be done prior.
Departure letter – Consider writing a letter to your clients that can be given to them when they come into the practice after closing.
Prepare a business office location at another location (home?) so that you may continue the bookkeeping of your business matters after the practice closes.You will need bookkeeping software and your practice accounting data (and a computer to run it on.)
Close out books – Be sure to close out books in computer as though it is a year-end.Do this on the day of closing.Be sure to print out an Accounts Receivable detailed report and perform any backups you may need.Your software vendor can help you with this process.
Remove personal effects, wall decorations, etc., that were specified not to convey in the sales contract.
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The new 3rd edition expands and amends the sold out 2nd edition. Written by the experts at Simmons, this book is aimed at helping veterinarians better understand the intricacies of veterinary practice sales, valuations and ownership.