When selling a veterinary practice it’s advisable to plan your exit strategy well ahead, allowing sufficient time to address any issues that could adversely affect the outcome. Sector-specific challenges that aren’t dealt with can damage a practice’s worth in the eyes of buyers, and significantly lower the final sale price.
So what ongoing issues in the veterinary sector could negatively affect a sale, and is there anything you can do to increase the perceived value of your business when you place your veterinary practice for sale?
The high expectations of pet owners in terms of animal care and continuity of care can have a negative effect on your business if they’re not carefully managed. Customer experiences are often relayed to the world very quickly these days via social media, so given that negative feedback can rapidly damage a business’ reputation, it’s important to manage customer expectations effectively.
Brexit may have a negative impact on veterinary businesses in the UK if restrictions are placed on members of staff from the EU, and they’re unable to remain here to work. A shortage of vets educated in the UK could also create a challenging environment for veterinary practices. Attracting and retaining key members of staff may require a higher wage offering, and associated increase in employment taxes for the business.
Veterinary practices that haven’t invested in the latest diagnostic and monitoring methods and technologies may be viewed as having a lower value by potential purchasers. Technology is constantly evolving in this sector, both in terms of pet treatments and also workflow management within the practice, but it can be difficult for practices with limited capital to keep up.
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Obtain specialist help
A veterinary practice sales broker can make a significant difference when selling this type of business. Selling My Business operates an extensive database of potential business buyers, including those looking to buy a vet practice. We can help you plan your sale using sector-specific experience, and ensure you stand the best chance of maximising the business’ value.
Know your main objectives
The reason why you’re selling your vet practice will help you determine your main goals and objectives from the sale. If you’re planning to retire, for example, you may want to keep to a strict timeline or balance the timescale with extracting the highest possible value from your business.
When you send out your initial sales memorandum, you’re releasing sensitive commercial information and data so it’s important to make sure all interested parties sign a non-disclosure agreement. This protects your practice information from rivals, and makes the process easier to manage.
Ensure your figures are reliable
People looking to buy a veterinary practice will need to carry out due diligence before the transaction completes – this is inherent to every business selling process and protects buyers from misleading or inaccurate information. Securing professional assistance in gathering and providing information to potential purchasers helps to garner confidence that you’re a trustworthy seller.
Selling My Business understands the sector and can help if you’re selling your veterinary practice. We advertise locally and nationally for people looking to buy a vet practice, and operate a large database of potential business purchasers.
Our experts can also provide a reliable valuation for your business, negotiate with purchasers on your behalf if you prefer not to be actively involved at that stage, and offer consistent moral and practical support along the way. Please contact one of our expert team to find out more. We can arrange a same-day consultation free-of-charge.
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