Tips For Veterinary Practice Sellers

Thinking about selling your veterinary practice? It’s totally normal to feel a bit confused about getting it right. Wondering how to get the best price? Maybe you’re wondering how to keep your team and clients happy during the transition. Or perhaps you’re just trying to avoid those common pitfalls that can impact your  sale. Well, no worries! By putting a solid plan in place early and picking up some tips from those who’ve walked this path, you can navigate this exciting yet complicated journey with ease. 

Ready, Set, Prep!

Check out Dr. Emily’s playbook. She didn’t just stumble into her practice sale; oh no, she plotted that move meticulously! From getting a pro valuation of her veterinary practice  to sprucing up her clinic based on expert advice, she left no stone unturned. And guess what? Her efforts paid off big time! She ended up attracting a bunch of serious buyers and clinching a sale that fetched her a cool 45% more than she had banked on. Now, that’s what we call a success story!

We have many similar success stories to tell you. Let’s review a few of them

MIDWESTERN USA (RURAL) • 3 Dr.’s

This practice owner was with Transitions Elite from the beginning of their selling process. They were hoping for $5 million but since they were very eager to sell they were willing to go as low as $4 million. We implemented our Elite Selling System™ which produced three offers: $4.5 million, $8 million and we finally closed on $12.5 million (over 3 times what the client was originally thinking of accepting!).

EAST COAST USA (URBAN) • 5.5 Dr.’s

This owner was with Transitions Elite from the start of their selling process. In just under 120 days (4 months) we had negotiated 5 offers with a huge range, offers between $12.5 million all the way up to $22 million. The client accepted the second highest offer ($20.8 million) because the Transitions Elite team were able to secure the best terms with this particular buyer, but an offer range of almost $10 million illustrates the importance of obtaining multiple offers. 

Still not convinced? Check what David has to say about his experience of working with Transitions Elite Team

Now, let’s discuss your roadmap to success 

Your Roadmap to a Smooth Sale

1. Start Early:

You gotta start laying the groundwork a good couple of years ahead. It’s the perfect window to get your finances into shape, fortify those client bonds, and find out the problems in your operations. Think about upgrading your equipment, sprucing up the parts of your clinic that clients see, or even introducing new technology like a CRM which can make the communication between you and your clients smooth. A slick, attractive practice is bound to catch the eye of serious buyers.

Take a look at Dr. Angie’s journey. She made the call to sell her veterinary clinic and got everything aligned solid three years beforehand. She reviewed the accounts and made sure everything was in place, invested in the new tech, and gave her veterinary clinic a fresh look. She also introduced a new CRM to better manage the client communications. And guess what? When she finally listed her veterinary practice for sale. Multiple offers came rolling in, and she ended up bagging a premium price in no time.

On the flip side, there’s Dr. Bennett, who decided to sell his veterinary clinic without giving it much thought. His financial records were not up-to-date , and his clinic looked like it was stuck in a time warp. Needless to say, buyers weren’t exactly lining up around the block. And the ones who did show interest? Well, let’s just say they weren’t exactly interested in paying the price that the clinic should be worth. Moral of the story? Early preparation is the name of the game!

If you are still thinking that you have enough time to get things ready, well you have the example of Dr. Bennett and Dr. Angie. Now, it’s up to you whether you want to make this selling process a success or not. 

Well, let’s start with a free valuation call with your senior financial advisor, Tom . He can help you with every step of the selling process and will answer all your questions. 

                                             

2. Know What It’s Worth:

Picture this: you’re at a garage sale, eyeing a vintage record player. How much would you pay for it? Without knowing its true value, you might either lowball the seller or walk away, missing out on a gem. The same goes for your veterinary practice. Get a pro to give it a once-over and slap a price tag on it. That way, when potential buyers come knocking, you’ll be armed with the knowledge to set a fair price, avoiding the dreaded scenario of asking too much or leaving money on the table.

3. Dot the I’s and Cross the T’s

Imagine you’re preparing a presentation for an investors meeting to get funding for the upgradation of your veterinary clinic. Would you scribble some notes and call it a day? Of course not! You’d gather all your facts, figures, and slides neatly in one place. Selling your practice is like presenting to a room full of potential buyers. You want to make sure that everything is covered well from legal to financial. That means rounding up leases, contracts, financial statements and everything that is important to the buyer. Transparency is key here! 

4. Get Tax-Savvy

Just like how you strategize to maximize your tax return each year, you’ll want to do the same when selling your veterinary practice. Sit down with a tax consultant  who can help you navigate the details of tax implications. From timing the sale to restructuring deals, a little tax savvy can go a long way in fattening up your take-home proceeds.

5. Find the Right Buyer

The definition of the “right buyer” varies for every practice owner. Based on our experience, we know that practice owners want to sell their clinic to someone who shares a similar vision and can carry forward the legacy they have built over many years. It’s not about getting the highest price but finding the right buyer who will continue with care. 

We also covered this topic in a blog post last year; you can review and find more details below 

More info – How To Find the Perfect Buyer For Your Veterinary Practice

6. Market Smart

Marketing is the key to success when it comes to selling anything. Remember the last purchase you made because you saw an advertisement that resonated with your pain points and needs? Similarly, when it comes to selling a practice, effective marketing is crucial. This involves not just listing the practice for sale, but also strategically highlighting its strengths and unique selling points.

Understanding that marketing may not be your forte, we at Transitions Elite have developed a comprehensive approach to ensure your practice reaches the perfect buyer. Our Transitions Elite Selling Process™ includes several key steps:

• Preparation: We ready your practice for sale, ensuring it showcases its full potential.
• Connection: We link you with the best buyers, chosen specifically to match your practice’s unique characteristics.
• Management: We handle the entire sale process, including negotiation and due diligence, to ensure a seamless transition.
• Efficiency: We focus on selling your practice without delays, prioritizing a swift and effective transfer.
• Outcome: Our goal is to deliver the best possible outcome for you, the Practice Owner.
• Value: We strive to secure the best deal and the most money for your practice.

By integrating these steps, Transitions Elite guarantees a tailored and effective marketing strategy that aligns with your goals and maximizes the value of your practice.

7. Keep Your Team in the Loop

Your staff is the backbone of your veterinary practice – they’re the ones who keep the wheels turning day in and day out. So, don’t leave them in the dark! Get them involved early on, address their concerns, and reassure them about their future under new ownership. After all, a smooth transition starts with a united team.

8. Get Expert Help:

Selling your practice is like starting a challenging journey into unknown territory. Luckily, there are experts like veterinary brokers, lawyers, and accountants who can help. These professionals know everything about selling a practice and can make the process smoother for you. They’re like skilled sailors guiding you through rough seas.

Review how we have helped Practice owners like you in selling the veterinary practice with ease for the top dollars.

“Transitions Elite holds your hand through the whole selling process. For many it can be a frustrating & stressful time, but they make it very easy.”

Dr. Lonnie & Naomi Davis

“I knew that I would get the best value for my practice if I had Transitions Elite helping me. I got a fabulous deal thanks to them!”

Dr. Sharon Gorman

9. Stay Involved

Think of selling your veterinary practice as passing the baton in a relay race. You wouldn’t immediately stop and leave after passing it on. Instead, you stay to support your team, give tips, and ensure everything goes smoothly. Similarly, after selling your practice, plan to help the new owner adjust. Your advice and guidance can greatly help in a smooth transition and maintain the legacy you’ve established.

With these steps, you can approach the sale of your veterinary practice confidently, ensuring a smooth transition and optimal outcomes. Ready to get started? Book a free valuation call with Tom and take the first step towards a successful sale with the support of Transitions Elite.