It’s never too early to start planning for your future and preparing your veterinary practice exit strategy.
A veterinary practice exit strategy will help you maximize the return on your investment and make sure your practice sells more quickly when the time is right.
The thought of leaving your practice may be uncomfortable, but the doctor who is well-prepared,
with a veterinary practice exit strategy, will be able to do it when they are ready.
10 STEPS FOR A SUCCESSFUL EXIT STRATEGY
CONSIDER A REAL ESTATE OPINION VS. APPRAISAL
Make sure that all issues regarding the real estate are resolved and the property is sale-ready. Encroachments, environmental issues, zoning, or permitting problems should be addressed. The presence (or disposal) of X-ray processing chemicals is an example of an environmental issue that can complicate a sale.
REPORTS OF FINANCIALS
Make sure that your accounting system is up-to-date and can generate accurate reports for a complete picture of your financial health. Your broker will advise you on the specific documentation that you will eventually need to provide.
THE LOCAL MARKET
Take note of doctors in your area who might be interested in buying your practice. It is also wise to discuss an associate buy-in or a merger with a competitor.
SET UP A SYSTEM OF DOCTORS
Set up a reliable system of relief doctors, associate rotations, and emergency and specialist referrals.
PS Broker will help you maximize your return on equipment, but here are some general principles. Don’t enter any new equipment leases as you approach your exit date; leases can be paid off at closing or assumed and can include a hefty early pay-off fee. Upgrades to your equipment may be sensible, but care must be taken to avoid investments that won’t really help the bottom line. The same thing applies to improvements in the real estate. Make improvements and updates that make sense but do so carefully.
FACILITY’S LEASE OPTIONS
If your practice is in a leased facility, it’s good to have a multi-year lease that is renewable and transferable, plus a landlord who is willing to work with a new owner. Any expansion opportunities offered by the landlord, or other potential changes, should be documented.
MAKE AN EQUIPMENT LIST
Compile an equipment list and keep it up to date. It should include model and serial numbers.