Should You Sell Your Veterinarian Practice Privately or to a Corporation?
When you’ve come to the point where you want to sell your veterinarian practice, you will have two main choices for how you proceed.
Your first option would be to sell to a private person or group. This may include an associate at your practice or a colleague who’s in the field.
Your second option would be to sell to a corporation. These brands have years of experience running — and buying — veterinarian practices just like yours.
As with just about anything in life, there are definite pros and cons to each type of sale. Before you make your decision on which path to pursue, weigh all sides of both options.
Sell to a Private Person
When you think about selling your veterinarian practice, this may be the initial option that comes to your mind. In this scenario, you would sell your practice to an employee of yours, another associate in your practice or a colleague who you know in the field.
Here are some of the advantages to selling your veterinarian practice to a private person:
- You’ll have confidence knowing they’ll run the practice in a similar way that you did.
- The practice could remain a smaller “mom-and-pop” operation, if that’s what you had.
- It’ll help others in your local community own their own business.
- It’s an outright sale most of the time, giving you a chunk of cash up front.
Here are some of the disadvantages to selling your veterinarian practice to a private person:
- You’ll be selling to a person who may not have experience running a business.
- The new owner may come to you for consultation because of your previous relationship, even if you don’t have a consulting agreement.
- It may be a longer sales process, with more financial due diligence needed
- You won’t get a steady income that comes with an outright sale.
- There will be serious tax implications of getting a large amount of cash.
Sell to a Corporation
Your second main option for selling your veterinarian practice is to sell to a corporation. There are many corporate vet brands that purchase local practices. This helps them expand their reach while partnering with successful, locally-run practices to support the local communities in which they operate.
Here are some of the advantages to selling your veterinarian practice to a corporation:
- You’ll sell to an established company in the veterinarian field.
- The corporation will have more experience buying companies, which could lead to a smoother business process.
- There is a higher assurance the business succeed after the sale.
- It will likely result in continued, steady income for you, since the corporation will likely want you to sign an employment contract and stay on staff for a while.
Here are some of the disadvantages to selling your veterinarian practice to a corporation:
- You may have to stay on and work after the sale.
- Most corporations won’t want you to leave the practice after the sale, at least not right away.
- You won’t get a big chunk of money at the time of sale to use however you want. Selling to a corporation is often not an immediate retirement solution.
- Your practice may lose the hometown “mom-and-pop” feel.
- You will lose outright control of the practice while still working there.
Talk to a Sunbelt South Florida broker today to prepare your business for sale!
Sunbelt Business Brokers of West Palm Beach provides dedicated business brokerage services for all of your selling needs. Whether you are an established business owner nearing retirement and looking to sell, or an ambitious entrepreneur seeking your next investment opportunity, there is no reason to look beyond Sunbelt Business Brokers. Visit us at 800 Village Square Crossing
Suite 216 Palm Beach Gardens, FL 33410 or contact us at (561) 832-9222.