Using The VBA

Selling your Practice.

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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.

Who are today’s buyers?
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What are you selling & what will you get?

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What is our involvement in both the sale & maximising the value you receive?
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We will support you through the entire process and maintain contact throughout the transaction ensuring that you fully understand and agree each aspect of the process and the progress being made.

Veterinary Practice Sales Service 

TO START THE PROCESS

Contact us on the VBA website
Either telephone us on 07939216174 for a provisional discussion, or visit the VBA website and complete the enquiry form (this will allow you to give some basic information prior to having a preliminary discussion) and we will contact you at a time convenient to yourself.
Send Financial and Background Information
After our initial discussion we will ask that you send us copies of your practice accounts and a completed Veterinary Practice Sales Information Form - these can be downloaded or sent to you by post.
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.

Once we have come to an agreement on our services- .
We undertake a site visit - This will allow us to obtain additional information about the practice, and will include an equipment valuation update.(We understand the need for discretion in regard to staff during the visit.) At this stage we will require you to sign a sales contract with the VBA
Your Responsibilities
You must get an EPC (Energy performance certificate), for the property if you are selling or leasing it. We can advise on companies who undertake this.
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)
Post Visit
a) Once we have agreed on a minimum achievable Sales Price we will begin marketing the practice.
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.
Offers
a) We will handle all negotiations and evaluate and review all offers received, and report them to you.
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.
Instruct your professional representatives
a) You will need to instruct a solicitor to deal with the sale contract and property aspects..
b) Your accountants will have to handle the financial due diligence- in incorporated practice sales we will be involved with this also.
Exchange contracts
On exchange, the sale contracts are signed and the sale is legally binding. Exchange may occur prior to or in conjunction with the completion date.
Completion
a) Stock is usually valued on or just prior to completion-the monies are forwarded to your solicitors account.
b) With incorporated sales a final balance sheet is undertaken to allow any final payment it take place
To find out more Tel: 07939216174 and speak directly to Malcolm at the VBA Email: mal@thevba.com
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