If you’re a veterinary practice owner, chances are you’ve had a colleague or two who have sold their clinics and hospitals to either a corporate group or even to their known associates. Selling to known associates is one thing, but when trying to sell one’s firm to a corporate buyer, there are a couple of things that one must be aware of to ensure success.
That said, why must this concern you? Well, if you’re planning to sell your veterinary practice to a corporate buyer, you should know that they can essentially pay for more than what your clinic is worth on paper. And, with practice valuations becoming a lot more sophisticated, you need to know what you can do to ensure the sale of your practice is not only a successful one but even a profitable one.
One way to do this is to understand what a corporate buyer expects out of you when it comes to selling your veterinary practice to them:
1. A Well-Run, Profitable Business
Corporate buyers are interested in buying practices that are profitable and have a solid track record of financial stability. Because of this, they will often request financial statements and tax returns to see how your finances are looking. So, it is vital to have these prepared to show to reduce wasted time.
2. A Well-Trained, Professional Staff
A well-trained staff is essential to the success of any veterinary practice. After all, without staff, no clinic will run. Corporate buyers will often ask for employee manuals and job descriptions as part of their due diligence. As such, have these in hand, and also let your staff know about what you’re doing in case they might be asked some questions.
3. A Well-Maintained Facility
A well-maintained facility is important to any clinic. Not only does it showcase the work environment of the staff members, but it also shows how capable your clinic is in terms of offering its services. Corporate buyers will want a tour of the facility to check out what your practice has to offer. For that reason, it is vital to ensure all your facilities are repaired and properly cleaned to make them as attractive as possible.
4. A Strong Marketing Plan
A strong marketing plan is vital in ensuring that the clinic is well-known to its audience, and the better the marketing plan, the more popular the clinic. Because of this, corporate buyers will need a copy of the marketing plan to see what kind of effort you’ve put into marketing your clinic. As such, make sure you have the necessary documents ready.
5. A Motivated Seller
A motivated seller is vital to the success of any veterinary practice sale. Corporate buyers will often reach out to you and ask for intent or proof of financial ability to sell, and they may even interview you and ask you questions regarding the sale. So, prepare yourself for such questions to attract the buyer into purchasing your practice.
Conclusion
By meeting these expectations, you stand a much better chance of selling your veterinary practice for much better prices, not to mention enjoying a smoother selling experience. That said, if you are having trouble transitioning your clinic to someone else for any reason, it is important to reach out to a professional for help. Experts can assist you in selling your clinic and helping you transition to a new environment, making the entire experience as smooth and enjoyable as possible.
myVETgroup are experts in veterinary transitions, helping people buy and sell veterinary practices in North America. If you are trying to sell your practice to corporate buyers, reach out to us today for help!
