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The Broker
Q11: WS- Midlands - "I have been made an offer of £900,000 for my 4 vet SA practice, I am a sole trader, the corporate group who did this, approached me directly and after seeing my accounts, made the offer. It seems really good as I wasn't expecting as much. Should I take it and move on or ask a professional agent to help?"

A: All the major corporates have been approaching practices for the last 5 years. If they ask for accounts and make an indicative offer then this is exactly what the offer will be based upon, the historic financials of the practice. You may get an offer higher than you expected, but in almost every case the best values are obtained when the practice information (financial and clinical) is presented professionally and there are 2 or more interested parties.
You should be able to show the practice and its associated financial information in a way that will give confidence to the prospective purchaser, of the practice's viability for producing maintainable profits.
To sell a practice successfully you should

1. Prepare it for sale 3-6 months before marketing.
2. Know what sort of prices are being paid
3. Understand what is the minimum you want for the practice .
4. Maximise the number of potential purchasers.
5. Sell its benefits.
6. Agree a price based upon the best offers
7.Confirm agreed terms with a written Head of Terms.
8. Don't get involved in protracted negotiations.
9. Use an experienced professional sales team Sales broker, Lawyer and Accountants