October 29, 2020
Author: Trent Homec, MBA
Senior Vice President – Business Development
Pathway Vet Alliance
IS IT TIME TO SELL?
This is the question that many ask. When is the right time to sell my practice? The practice that I have built, in some cases, for over 40 years! Your baby, your prized possession, the business that you have put large amounts of personal capital in. The question can sometimes be elusive and very dependent on the individual and circumstances.
There is no big secret that the pet care industry continues on a steep growth curve. We survived, albeit pretty banged up and bruised, the Great Recession. We got side swiped by a great pandemic. One thing I have learned through all of this is that despite the obstacles, veterinary medicine is resilient, our hospitals teams are resilient, we are innovative and we can pivot on a moments notice to meet client and patient demands. Hats off to all that you do!
This resiliency hasn’t gone unnoticed by outside investors and as such, there is a high demand to purchase high quality hospitals. Purchase prices are at an all time high, practices owners are able to cash in on their business and in some cases re-invest into that company in order to build wealth over time and realize greater economic upside down the road.
With the demand to buy animal hospitals come many groups or companies who want to buy. It’s becoming increasingly difficult to differentiate between the dozens of companies and decide which company would be the best fit for your practice. As we all know, many companies come and go but the key is to identify a company that is built to last and is structured to provide support to you and your employees once you sell.
Selling your practice is deeply personal decision and shouldn’t be entirely motivated by money. If you are looking to retire in 3-5 years, most companies will want you, as a owner, to commit to a few years. The legacy doctor is typically the heart and soul of the practice. In many cases, practice owners love being a veterinarian, seeing patients, performing surgery and witnessing positive outcomes from complicated cases. Meanwhile, the burden of practice ownership and management drains the “fun” out of what you do. If you are in a position where you desire a more balanced lifestyle and would like to secure your financial freedom, while taking some of the burden of ownership off your plate, now might be the right time to consider a sale.
VGP is offering a valuation and succession planning service with support from Pathway Vet Alliance that is complimentary for
Elite members* and $495 for Standard VGP Members. Visit here to learn more: https://vgpvet.com/valuation