Selling a veterinary practice is no different than selling any other type of business, planning ahead will ensure better results. Before you put your veterinary practice for sale on the market, make sure you take the time to understand the things to do prior to coming to this decision. There are a few things one should take into consideration to ensure a smooth process and to be confident that this is the right decision, regardless of what the future holds. This is a very important decision and therefore, requires thorough contemplation. To help with this transition, here are some important things to consider before you sell your business.
Your Future Plans
You must be clear about your reason for selling before you proceed. If you plan to retire, make sure you have enough retirement savings beforehand. If you’re moving to a bigger place, there will be real estate proceedings to endure. If you want to change your location then you should also think about hiring new staff and all the things associated with establishing your practice at a new place.
If you are shifting careers, you’ll want to ensure you have the time and resources to do so – that includes a stable income to sustain you during the switch. You will also need to determine whether you can manage your expenses if you decide to take some time off. Whatever the reason may be, make sure you have a thoroughly thought-out plan for your next steps, so that you can comfortably make these changes without fear of hassle or mistakes. The more you plan in advance, the smoother the process will be.
As mentioned above, retirement savings or a stable income for your sustenance as you make the switch is very important. You must ask yourself whether you have the means to fund your new business venture, sufficient money to cover your expenses if you’re not working and if your financial management system is up to date. This is because you want to be well prepared for potential buyers and all their questions regarding finances. There’s a good chance they will request your tax returns to ensure this is a worthwhile investment for them. Your expenses will also come into question and whether you have generated revenue consistently or not. The decline in revenue will affect your attempts to sell.
Documentation and Paperwork
There is a lot of paperwork that must be completed and secured before attempting to sell. So you will need to get all these details ironed out ahead of time. For a start, it is recommended to get an appraisal. This will help you get an accurate valuation to determine your business’ worth. The gurus at www.vetvalue.pet explain that getting a professional report is the most efficient way to get your money’s worth. Furthermore, assessing your practice’s value will help you market it better and attract the kind of buyers you want. Luckily, this type of assessment can be done digitally for convenience.
Other paperwork includes all contracts and operating agreements, as well as articles of incorporation or partnership agreements, if necessary. You must ensure that all documents are updated from your licenses and ownership records to your business registrations.
It is recommended to consider your staff when you think of selling your business. You can insist that potential buyers agree to keep the staff on. You also should give employees at least a month’s notice to be able to find work elsewhere, if need be. The last thing you want to do is to leave your loyal and devoted staff hanging out to dry once you sell.
If you plan to uproot the business, decide whether you’ll be able to keep the staff on or not. If you’re moving to a bigger space, most likely you can take your employees with you. However, if you’re moving to a new location, this may affect employees’ commutes if they cannot travel to and from work every day, which may result in termination of their job with your company.
Referring to this guide will help you plan the right steps to take prior to selling your business. These tips will also help you decide if selling is the right decision for you or not. For instance, if your practice’s assessment states that the business is not as high value as you would like it to be, you can take the time to increase its value before selling. In addition, when you evaluate your finances, you will be able to determine if staying open a little longer will help the matter or not. In any case, this type of forward planning will ensure that, when you do decide to sell, you will get your ideal results.