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March 3, 2022
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How to Sell Your Vet Practice Stress-Free

Man holding a golden labrador retriever.

How to Sell Your Vet Practice:
5 Tips for Making the Process Stress-Free

Whether you’re approaching your well-deserved retirement or wish to try a completely new career, selling your veterinary practice can be tricky. On the surface, it looks simple enough: find someone who wants to buy your vet clinic and sell it to them. But, when you dig a little deeper, you’ll find that this is not as easy as it seems.

PS Broker understands the numerous details involved in this life-changing decision. We’ve compiled a short list of top tips to ensure smooth sailing through the selling process.

 

1. It’s Valuation Time: How Much Is Your Vet Practice Worth?

Before even considering selling a veterinary practice, you need to know what it’s worth. There is a real danger of undervaluation and, thus, underselling. On the other hand, it’s also important to have realistic expectations about what your practice might be worth. We strongly suggest you research companies that offer vet hospital valuations and hear what the experts have to say.

Note that it is fine to get a second or even third opinion regarding the valuation. Definitely consult with your lawyer for any additional legal advice that you might need during the selling process.

 

2. Don’t Be Afraid of Paperwork: Set Your Business Records Straight

Do you wonder what is often overlooked when looking to sell a vet practice? Your paperwork! Believe it or not, having a system for the paperwork madness will boost your chances of selling your vet practice quicker. When a potential buyer sees that you diligently took care of employees’ contracts, business registrations, licenses, financial statements, and many other documents, they will gladly invest in a business that was run responsibly and efficiently. So make sure you keep organizing your folders!

 

3. Decisions, Decisions: Informing Employees and Associates

You may be comfortable updating your employees and associates during the selling process—or you may wish to wait until the sale is finalized. It’s completely up to you and the nature of your practice.

Many vet practice owners and their co-workers have an almost familial relationship, one where they can share worries and wins with the entire team. If this is the case at your practice, it can be reassuring for employees to know that they can continue working via a new contract with the buyer of your practice. But if you do wish to keep the decision quiet until you have a buyer, it can keep extra short-term stress at bay for you and your team.

 

4. Teamwork Makes the Dream Work: Finding the Perfect Buyer

“Should I hire a broker to sell my vet practice?”

If you’re feeling overwhelmed by the process, this is a great question to ask. Let us reassure you: hiring a broker can lift a ton of weight off of your shoulders. Maybe you feel unqualified to interview potential buyers, or perhaps you just don’t have the time to manage the process. Hiring a team of professionals who have your best interests at heart can help you find the perfect match for your vet practice.

 

5. The Negotiating Process and Signing a Contract: What to Look out for

Last but not least, the negotiation and contract. Until the Letter of Intent (LOI) is signed by both parties, you have room to discuss the price and terms. After this initial step, the lawyers can start working on the contract. Make sure to cover all the details considering employees, equipment, and partners. Essentially, the vet practice is just changing its owner while the business stays the same.

 

Some Final Advice

In a nutshell, selling your vet practice can be stressful. But, with a little help from competent professionals, the entire process can go smoothly—and even be rewarding.

PS Broker can get your business evaluated by our certified analysts who specialize in animal hospitals and vet practices before we begin the buyer search. Contact us today and let’s discuss the future of your veterinary practice!