Using The VBA
Selling your Practice.
20 years ago when selling practice, owners would have a simple choice:
1. Sell to another Veterinary surgeon or practice.
2. Take on a partner(s).
Ownership had to be by a veterinary surgeon and only in the form of a sole trader/partnership.
The effect of this was that individual graduates would have a limited ability to borrow funds, with the result that the value of a veterinary practice itself would be limited to that ability to fund its purchase.
Incorporation was allowed in 1996 and this allowed non-vets to invest money into veterinary practices, opening the way for an increase in the value of profitable practices. Today large groups are funded by either private/ corporate investment in the form of shares or by private equity, which again increases, further the funds available to purchase the profits that the better practices make.
What are you selling & what will you get?
Start the process to check the viability of selling your veterinary practice
Once completed and returned by post (or undertaken On line ) we will be in a position to produce a ballpark figure for the practice value. We will also discuss our fees for the sale.
In many cases we will meet potential clients to discuss your position and give a view on what we have to offer including our terms of business.
There are no charges made for this and you are not under any obligation to continue.
b) You will also need to get a property valuation undertaken to allow us to use a market value for the sale or rent. (This can often be undertaken by a local estate agent FOC)
b) We will produce area Income demographics to give additional buyer information.
c) We will contact potentially interested parties before advertising the practice
d) We will normally advertise the practice (Confidentially) on our Website and in the Veterinary journals.
e) We will deal with all enquiries
f) We will give you the names of any interested parties for you to check.
g) Any potential buyers must then sign a Confidentiality Agreement and Non- disclosure agreement
h) Once this has been undertaken we will send them a Shortened Memorandum of Sales- this will give background information but will only give very limited financial information without identifying the practice.
i) If a potential purchaser wishes to progress their interest, in most cases we will then arrange a practice visit which we will attend.
j) Interested buyers will then receive a Full Sales Memorandum - which will contain all the background information on the practice including demographics and further financial information.
b) We will assist in negotiating any employment offer if that is part of the terms.
c) Once you accept an offer, we will draw up a Heads of Terms between the parties - We would produce this with an agreed exclusivity period while the purchaser undertakes any due diligence.
b) Your accountants will have to handle the financial due diligence- in incorporated practice sales we will be involved with this also.
b) With incorporated sales a final balance sheet is undertaken to allow any final payment it take place