Many veterinary practice sales have been thinking about selling their business. The practice market is strong and there are plenty of buyers, especially large corporate consolidators. These buyers are often able to pay very high multiples of EBITDA which can be quite an incentive for the current owner of a profitable, growing practice. However, there is also a great deal of concern that the valuation bubble will burst and that the multiples will revert to historic averages.
Navigating the Transition: A Guide to Veterinary Practice Sales for Practitioners
When the time comes to sell, there are many things you need to consider. First, you should have an experienced veterinary practice attorney value the business for you. This is a crucial step to ensure that you are getting the best possible price for your practice. There are two different ways to sell a practice; either as an asset sale or a stock sale (in the case of an incorporated business).
In an asset sale, you are selling all the tangible and intangible assets including liabilities, but in a stock sale, the value is based on the equity of the company exempting the liabilities. This is an important distinction as it will have significant implications for your taxes after the sale.
It is also important to discuss the transition period with your staff and make sure that they are comfortable with the changes. This will help the business run smoothly after the sale and ensure a positive experience for all parties involved. Finally, you should hire an experienced lawyer to prepare the contract for the sale. This will prevent a rushed transaction that could result in unforeseen problems and expensive litigation.
