9 Essential Tips for Planning Your Veterinary Practice Exit
It is never too soon to start building an exit plan for your veterinary practice. Whether you are just starting or have been in the business for decades, it is important to have a plan in place for when you are ready to transition out of your practice.
So, how do you go about creating a successful exit strategy for your veterinary practice? Here are nine steps to get you started:
Start planning early:
As mentioned, it’s never too early to start thinking about your exit strategy. The sooner you start planning, the more time you will have to make any necessary changes to ensure your practice is in the best possible position for a successful sale.
Understand your options:
There are a few different options for exiting a veterinary practice, including selling to another veterinarian, selling to a corporate entity, selling to a competitor or existing employee. It’s important to understand the pros and cons of each option and determine which one is best for you and your practice.
Evaluate your practice:
Take a hard look at your practice and consider any areas that may need improvement. This could include things like updating equipment, improving financial management, or increasing marketing efforts.
Build a team:
Consider putting together a team of advisors to help you with the exit process. This could include a financial advisor, an attorney, and a practice management consultant and business broker.
Prepare financial documents:
It’s important to have all of your financial documents in order before you start the exit process. This includes things like tax returns, financial statements, and a list of assets and liabilities.
Determine the right price:
The price of your practice will be based on a variety of factors, including the size of the practice, location, and financial performance. It’s important to determine the right price that will be attractive to potential buyers.
Market your practice:
Once you’ve determined a competitive price, it’s time to start marketing your practice to potential buyers. This can be done through a variety of channels, including online listings, local classified ads, and networking events.
Negotiate the sale:
Once you’ve found a potential buyer, it’s time to negotiate the terms of the sale. This can be a complex process, so it’s important to have your team of advisors on hand to help you through it.
After the sale has been negotiated and the terms have been agreed upon, it’s time to transfer ownership of the practice. This process will vary depending on the type of sale, but it generally involves transferring assets, transferring contracts, and transferring any outstanding liabilities.
Having a well-thought-out exit strategy will help you get top dollar for your practice, which is especially important since you have invested a significant amount of time and resources into building it.