How to Increase the Value of Your Veterinary Practice

After years of dedication and hard work, there are many reasons why you may want to sell your veterinary practice.

You may want to retire and enter a new period of your life filled with more free time for family, friends and travel. You may want to make a new investment and need the cash to pursue that avenue. You may want to keep working by make a switch in the industry.

Whatever the reason for your desire to sell, one thing remains constant: You want to get the most money possible for your sale.

As you enter the late stages of your life as a veterinary practice owner, you may think it’s too late to effect positive change on your business’ value. But this is simply not true.

Here are three ways you can increase the value of your veterinary practice before you go to sell.

1. Get Your Books in Order

Whoever is buying your practice will want to see your financials. During the business negotiation phase, they’ll ask you to turn over your books for them to analyze in-depth.

In preparation for this, you’ll want to make sure that your books are in order. Many veterinary practice owners don’t have the cleanest of books, but that’s OK. There is still time to remedy this.

A business sales advisor who’s an experienced accountant can help you get your books in order. This will make your business more attractive to prospective buyers, which will increase the value of your practice.

At the same time, cleaning up your books will make it crystal clear where you need to improve. This will allow you make improvements to your practice that will, in turn, increase its value before you sell.

And if you decide not to sell — or the sale takes longer than expected — it can help make you more profitable in the meantime.

2. Streamline Your Operations

Business buyers want to take over a veterinarian practice that has set standard operating procedures in place. This reduces their upfront work and allows them to dive right in once the sale is complete.

Having set procedures allows the new owner can follow makes for an easier, smoother transition for them. It makes for a more seamless transition for your current employees and an easier onboarding process for new employees.

It also gives patients a consistent experience as they, too, must transition from one owner to another.

If your operations are streamlined, your veterinary practice will be more attractive to a wider range of buyers, which in turn will make it more valuable. If you don’t have standard operating procedures in place, doing so before you look for a buyer will increase your practice’s value.

Once you create the standards, write them down for reference sake. This will serve as a guide for the new buyer to follow as they run your business.

3. Study the Market

The value of your business will be determined in large part by what the market is dictating at the time of the sale. The “market,” in this case, will be a combination of values of similar companies on a national, regional and local level.

Knowledge is power in business negotiations. One of the most important things you can do before you sell your business is to research the current market.

Doing so will give you an idea of your veterinary practice’s current prospective value. You can look at other recent sales of similar-sized practices. This research will give you a good handle of where you might land financially from the sale of your practice.

In addition, this exercise will also show you how you stack up with some of your current competitors. The end result of this research will be a playbook for areas you may want to improve and/or upgrade before you sell.

Investing in technology upgrades, for example, can significantly increase the value of your business — especially if your practice could use a tech upgrade. You can also re-assess the services you provide and the prices you charge compared to your competitors in the market.

By fine-tuning these three areas of your veterinary practice before you sell, you’ll be optimizing and maximizing the potential value of your business.

If you are aiming for an easy transaction talk to a Sunbelt South Florida broker today!
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.