Selling your veterinary practice will be the biggest transaction you will ever undertake, so it is vital to get a feel of its value before moving forward.
Many practice owners are being regularly approached by the corporate practices with the offer to buy and the price is often based on very little reliable information.
Knowing the possible valuation range of values allows you to decide both, the exit route to be taken and how you are going to approach the actual sale.
Factors involved in determining a practices value.
- Historical and projected financial performance
- The current maintainable profit
- Maintainable earnings multiples from previous purchases/sales
- Income arrived from third party service suppliers. (e.g. laboratory tests)
- Potential for improved performance
- Quality and accuracy of the sales information memorandum
- Practice location and demographics (income/pet ownership)
- Management systems and staff quality and stability
- Level of competition
- Type and size of practice
- Secure property occupancy and market rental values.
- OOH cover
- Dependency upon retaining owner
- Part of buying group
- Practice standards scheme