Veterinary Practice Sales Process
We have provided credentialed brokerage services to veterinary practice sellers for more than 20 years.
Ready to sell your veterinary practice?
AS YOUR EXCLUSIVE REPRESENTATIVE,
HERE’S WHAT WE OFFER:
We have a diverse range of experience with over 20 years of representing veterinarians.
When you list with PS Broker, we keep you informed throughout the process.
We are prompt, easy to work with, friendly, and we return your calls.
We offer competitive commission rates and fees.
We continually update an extensive database of qualified buyers, both independent and corporate, as potential candidates to purchase your practice.
We have a nationwide network of professionals including mentors, practice consultants, tax specialists, recruiters, and attorneys.
We facilitate the sale of perhaps the most significant transaction of your life.
PS Broker will sell your veterinary practice.
HERE’S OUR STEP-BY-STEP
VETERINARY PRACTICE SALES PROCESS:
Have you ever thought to yourself, “Where do I start if I want to sell my vet practice?” The truth is, every practice is different. The selling process begins with a discussion to allow us to understand you, your practice, and why you are interested in selling your practice. We will introduce ourselves, explain the sales process, and detail our services and fees. We expect you will have many questions, and we look forward to answering them thoroughly.
After our conversation, we will email a checklist of items needed to start the valuation process to establish a list price for your practice. We will also email a list of our references and our signed Confidentiality Agreement. Rest assured, any information you share with PS Broker is strictly confidential. Once the Confidentiality Agreement is completed, the valuation process begins in earnest.
IN-HOUSE PRACTICE VALUATION
To evaluate your practice, PS Broker’s Certified Valuation Analyst will require some background information and documentation to begin the process.
- What is the name and location of your practice?
- When was your practice established?
- How is your income produced; from small animal/large animal/mixed/other?
- Are you a solo practitioner, or do you have associate doctors?
- If you have associate doctors, do you have a non-compete with them? Do you and the associates work full-time?
- If you own the real estate, has there been a recent appraisal? If so, what is the value of the real estate?
- If the practice facility is leased, what are the lease terms?
- What is the approximate square footage of the practice facility?
- How many exam rooms are there?
- Is there room for expansion?
- What are the major equipment items? Digital X-ray? Surgical Laser? In-house Lab?
- Are any pieces of the equipment leased or financed? If so, how much is the payoff for financing?
- What was the gross income for the most recent fiscal year?
- Are there any new competitors in your practice area?
- The Last 3 Fiscal Years of Practice Tax Returns (the 1120-S or Schedule C & Statements)
- The Last 3 Fiscal Years of Profit & Loss Statements
- Period Total Reports for the Last Fiscal Year
- The Practice’s Year-to-Date Gross Income for This Year Compared to the Same Period in the Previous Year
- Income Production Summary Report for the Last Fiscal Year (Report Showing % of Income Produced by Services Provided – i.e., Vaccines, Surgeries, Office Visits, Medications, Lab, etc.)
- W-2 and 1099s for Associate Doctors & Relief Doctors for the Last 3 Fiscal Years (If Applicable)
- Current Employee List with Wages & Benefits
- Basic List of Major Equipment Currently Used to Generate the Practice’s Income
- Copies of any Equipment Contracts and/or Leases
- Asking Price for the Real Estate Housing the Practice & Terms of a Current Facility Lease
Once our Certified Valuation Analyst finishes the financial valuation of your veterinary business for sale purposes, we will schedule another call with you to share our opinion of a listing price and recommended terms for a corporate buy-out or a sale to an independent buyer. If you have a practice with little to no extra cash flow after all necessary expenses are paid, we can discuss areas where we see opportunities to improve the cash flow and, hence, the value of your practice. We will discuss the expectations of a corporate buy-out and the timeline we estimate it will take to sell.
Before listing your practice, we suggest you speak with your financial advisor regarding the tax consequences of selling. Your financial advisor may recommend an allocation of the selling price and various tax deferral opportunities.
When you agree to engage PS Broker as your exclusive representative, we email you our Exclusive Right to Sell Agreement. We recommend that you have our Agreement reviewed by an attorney. We are open to discussing any changes you may have to the Agreement.
After concluding the Exclusive Representation Agreement, as our client, you will have a dedicated Account Manager who will get to know you on a personal level. Your Account Manager will be with you from listing your practice until it is sold.
Our marketing team will assemble and gather any additional practice information that may be needed when presenting your vet clinic for sale on the market. We then create a public advertisement and a more detailed marketing package and submit them for your approval. Qualified buyers will only have access to your practice’s specifics after signing our Non-Disclosure Agreement (NDA).
OPEN MARKET & PUBLIC ADVERTISING
We begin our marketing upon your approval of both the public advertisement and the detailed information package. Alongside old-fashioned personal customer service, mass mail, and actual phone calls, we have a modern advertising strategy that includes search engine optimization and digital marketing specialists tailoring your ad for the broadest possible distribution in the veterinary industry.
One of our most successful marketing tools is our Matterport 3D virtual tour. The virtual tour allows a qualified buyer to view the practice facility online with nearly the same level of engagement as a physical visit. Again, all interested buyers must submit our non-disclosure agreement before receiving any information other than the public listing.
IDENTIFY PROSPECTIVE BUYERS
We maintain a national database of independent and corporate (companies that buy veterinary practices) buyers. In addition to our internal database, we actively identify new prospective buyers in your area. When a buyer shows legitimate interest in purchasing your practice, we will act as the intermediary in communications, coordinate visits, and negotiate the sale terms on your behalf.
ASSIST IN OBTAINING FINANCING
Prospective buyers need to secure financing before presenting a Letter of Intent. If interested buyers have yet to be pre-approved for financing with a preferred lender versed in veterinary practice financing, we introduce them to lenders with a proven track record.
NEGOTIATE THE DEAL
Upon receiving Letters of Intent from qualified buyers, we negotiate the price and terms on your behalf. Our goal is to get you the best deal possible.
We negotiate multiple offers, including cash, stock options, or earn-outs. We negotiate employment contracts. We negotiate the allocation of the selling price. We facilitate due diligence (a challenge in itself). Virtually every aspect of the process, all the way through to closing, draws on our firm’s 21+ years of experience.
Once a Letter of Intent is signed, our dedicated closing team ensures all the necessary due diligence items are procured, and deadlines are met. Our closing team will coordinate with attorneys, lenders, and escrow companies, provide contract templates, schedule meetings, and organize and facilitate all the documents needed to close the sale in a timely, streamlined manner.
We know how much work you put into building your veterinary practice, and our team is dedicated to giving your practice the attention it deserves.
Reach out to us to learn more about selling your practice – we can help you throughout the whole process.