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

1

CONSIDER A REAL ESTATE OPINION VS. APPRAISAL

If you are uncertain about the value of your real estate you may want to consider a real estate opinion from a local, commercial, real estate broker. An opinion should not have the same time and cost constraints as a real estate appraisal. Paying a small fee for an opinion from your local, commercial, real estate broker may give you confidence that your asking price for the real estate is in line with the current local commercial real estate market.

2

GET YOUR
PROPERTY SALE-READY

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.

3

MAINTAIN
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.

4

UNDERSTAND
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.

5

SET UP A SYSTEM OF DOCTORS

Set up a reliable system of relief doctors, associate rotations, and emergency and specialist referrals.

6

CONSIDER YOUR
PRACTICE’S EQUIPMENT

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.

7

MAKE A FINANCIAL PLAN

You should talk to a financial planner about your personal financial goals and expectations. PS Broker can refer you to financial planners who work with veterinarians.

8

RESEARCH YOUR
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.

9

MAKE AN EQUIPMENT LIST

Compile an equipment list and keep it up to date. It should include model and serial numbers.

10

MANAGE INVENTORY

Inventory should be kept low because in most cases inventory is included in the asking price, and it is usually enough inventory to get a new owner through a month and a half without reordering. Any inventory over a few months the owner must sell, leave on the shelves, return to supplies, or take it with them. Avoid buying anything in large quantities, even if a great discount is being offered to buy in a larger quantity.

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Let us help you get started!

Our team is committed to providing excellent services to our clients in both buying and selling veterinary practices. With over 20 years of experience, we know how to make your transition streamlined, efficient, and enjoyable.

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