Veterinary practice sales involve large sums of money changing hands. Hundreds of thousands (if not millions) of dollars being paid in compensation for goodwill. But how does the buyer know that he/she will get that goodwill? The success of this transfer will depend largely upon how the vendor behaves post sale. • Will they endorse […]
There comes a time in every successful dental practice owner’s career when they consider opening another branch, or buying another practice. This juncture represents a possible turning point in their personal fortune. It introduces an opportunity to grow their wealth by expanding the scale and scope of their business interests and, at the same time, […]
When someone is looking to buy or sell a practice, they are often presented with an appraisal of the practice that has been prepared by the other party in the transaction. While the results of the practice’s trading may be clear, there are numerous appraisal techniques to choose from, and often some creativity applied when using them.
Terms like “Production/Revenue”, “profit”, “EBIT” and “expenses” are of course fundamental to any valuation technique, and there should be an objective universal definition of what they mean. Unfortunately, as you will see, they can be manipulated by people who are self-taught or trying to push their own agenda.
Here are some of the creative approaches to valuations that can distort value.
If given the option of selling to two or three parties, each offering a similar price and terms for a practice, then of course a vendor can factor in compatibility, personality and gut instinct, to determine who would be a good successor. However, starting off with a specific profile in mind for who the right buyer is, is to put the cart before the horse. Selling your practice needs to be a commercial decision at its core.
I have seen many rural practices over the years, and the high quality service that is provided to the community by the local vet never ceases to amaze me. I have seen hospital facilities equal to anything in the city; I have seen great LA practices operating in very small communities, and prospering because they are […]
The practice scene in Australia is changing rapidly, therefore practice owners need to be aware of strategic opportunities, so that the practice can continue to move forward with the industry (if you are not going forward, you are going backwards!). One of the options open to some practices is a practice merger with a near […]
We were recently asked to do an ‘urgent’ valuation on a practice for the purposes of a sale, because the owner had suddenly fallen ill and could not continue on. This is a timely reminder that, ‘there but for the grace of God go all of us’, and that, particularly if you are a practice […]
By Dr Hugh White MVSc MACVSc (Director CVE & ValuVet consultant) There are two ends of the pricing spectrum evident in veterinary practices but three pricing models: those who elect to charge low fees and have a high caseload those who charge high fees, where the caseload is limited to those who can afford their services those […]
By David Sharp BEcon, ACA Australia Day has come and gone, you are struggling to keep your new year’s resolutions, and you are already engrossed in the day to day running of the practice. Before it is too late take some time and space, and consider the following….you have already done so but put in […]
Practice Valuations, Exit Consultancy and Practice sales
Valuvet has been providing appraisals to the veterinary profession since 1996. Our appraisals are formualted by a veterinarian, accountant and practice sales expert, representing the perfect combination of perspectives. We understand your practice like no one else can.
Give us a call on (07) 5292 5162 or get in touch online!
2 Genoa Court
Cleveland, QLD 4163
PO Box 245
P (07) 5292 5162