Author: omniadmin

When beginning the process of selling a Veterinary practice, it’s imperative to work with specialists who have experience in selling Veterinary practices. Experienced transaction brokers can help Veterinary practice owners streamline the sale and achieve their ideal return on investment. The team at OMNI Veterinary Practice Group are specialists in this industry, and in their latest article they highlight five benefits of selling a veterinary practice through their services.

1. They Are Marketing Specialists

Working with a trusted industry specialist such as OMNI Veterinary Practice Group gives sellers access to a wider array of market options. Because the company’s staff has significant experience in the marketplace, they know how to quickly locate qualified buyers and to promote the seller’s practice in high visibility markets.

1. They’re Experts in Business Transitions

The specialists at OMNI Veterinary Practice Group have many years of experience in business transitions. They’ve helped hundreds of sellers to achieve their ideal objectives through the selling of their Veterinary practice. This means they can guide sellers throughout the entire process, from finding qualified buyers to completing negotiations and due diligence alongside the buyer’s legal team.

1. Frees Up the Business Owner’s Time

The work of Omni Veterinary Practice Group helps to support business owners in running their organization throughout the negotiations. They won’t have to take time away from their business to review the marketplace or to deal directly with buyer negotiations. They can leave all the work to the team at OMNI Veterinary Practice Group. This also means that they can retain the value of their company throughout the transaction, helping to support the on-going growth of the company and meet the needs of their patients while OMNI Practice Group responds to all transition requirements.

1. They can Prepare the Business for Sale

Because of OMNI’s experience in the marketplace, they know what it takes to prepare a company for sale. They can pinpoint structural issues within a business and help the seller to eliminate these structural issues before the sale begins. They can also highlight the elements the buyer will be analyzing during their due diligence, and complete processes areas such as the completion of all equipment paperwork to ensure every part of the transaction is in place before the sale begins.

1. They Seamlessly Close Business Transactions

The length of time a business transaction takes to complete can have a significant impact on a business owner and their finances. The team at OMNI works to reduce the timeframe of the sale and streamline the closing process. They ensure each element of the sale is completed according to the seller’s timeframe, and help reduce closing costs to ensure optimal value for the business.
Specialists for the sale of Veterinary practice businesses, OMNI is committed to working with sellers across the marketplace in finding qualified buyers for their practice. To learn more on the company and their services, contact their office team today at 877.866.6053.

We have talked about what buyer’s want in the practice, but here are some things that buyer’s hate to see.

1.  High overhead – even though it can be corrected, this is something dental practice buyers often don’t have the vision or knowledge on how to correct.  Even in high producing practices, if the overhead is too high, the buyers freak out.

2.  No way to increase the practice production or income.  If you are doing everything from root canals to orthodontics, you may be maxing out the practice.  I’m not saying it’s impossible to find the right dental practice buyer, but if you’re doing all of the procedures, it can be a bit more challenging.

3.  Old practice from equipment to the shag green carpet and the orange laminate counters.  If it’s been 30 years since you have updated anything in the practice, don’t expect a premium price.

4.  Remote practice – A practice in a small town 3 hours from any major city is harder to sell than a practice in a desirable area.  Give yourselves 2 years to sell dental practices in remote areas.

5.  Relatives working in the practice.  It’s okay to have a wife or child as an employee.  But if you have a wife, sister, daughter and son working in the practice and two of them will be leaving upon the close of the sale, you will have problems selling the dental practice.

These are some of the things to look at as you get closer to retirement, or just want to transition out of your dental practice.

​We have talked about what buyer’s want in the practice, but here are some things that buyer’s hate to see.

1.  High overhead – even though it can be corrected, this is something Veterinary practice buyers often don’t have the vision or knowledge on how to correct.  Even in high producing practices, if the overhead is too high, the buyers freak out.

2.  No way to increase the practice production or income.  If you are doing everything from general checkups to emergency procedures you may be maxing out the practice.  I’m not saying it’s impossible to find the right Veterinary practice buyer, but if you’re doing all of the procedures, it can be a bit more challenging.

3.  Old practice from equipment to the shag green carpet and the orange laminate counters.  If it’s been 30 years since you have updated anything in the practice, don’t expect a premium price.

4.  Remote practice – A practice in a small town 3 hours from any major city is harder to sell than a practice in a desirable area.  Give yourselves 2 years to sell Veterinary practices in remote areas.

5.  Relatives working in the practice.  It’s okay to have a wife or child as an employee.  But if you have a wife, sister, daughter and son working in the practice and two of them will be leaving upon the close of the sale, you will have problems selling the Veterinary practice.

These are some of the things to look at as you get closer to retirement, or just want to transition out of your Veterinary practice.

Whether you have owned your veterinary practice for 40 years, or owned it for 5 years, selling your  practice does not mean you are done practicing.  We often meet with doctors who are sick and tired of managing their staff, doing the bookkeeping, playing the games with the government agencies, dealing with the ups and downs of the economy, changing environment of the profession and on and on.  The doctors are about to crack, but think they cannot yet sell their practice as, according to their CPA or financial advisor, are not yet financially ready to retire.  We counter this by asking them “who said you need to retire?”  You can “harvest your equity” and either work back in the practice, or go work for another practice.  What the CPA’s and financial advisors may not see is that your veterianry practice collections numbers are going down.  Or, your blood pressure is sky rocketing due to the above mentioned challenges of managing your practice to the point of a heart attack coming right around the corner.  If you have a good amount of equity in your practice, we can sell your practice and you can put the cash in the bank and work as an employee until you are ready to retire in 5, 10, 20 years, or as long as your heart desires.  Transitioning out of your practice may be the way to enjoy your profession again.

Selling a dental practice is a complicated process.  Don’t go at it alone.

Selling a dental practice is a complicated process that involves numerous steps including determining the market value of your practice, finding the right buyer, negotiating the purchase price, purchase agreement and lease assignment, and facilitating the transition of ownership (just to name a few).  Employing the services of a trusted professional can make a tremendous difference in the success of your transition.  Here are the top 5 reasons to hire a practice broker when selling a dental practice:

1. To formulate a transition strategy to meet your individual needs
Not all practices and all doctors are the same.  A good dental practice broker will listen to your specific needs and goals to develop an individually tailored transition strategy that fits your situation.  There are many ways to structure a practice transition, including a walk away sale, associate to purchase, phased sale, and partnership arrangement.  When selling a dental practice, choosing the right transition strategy for you and your practice is the first step towards a successful transition.

2. To confidentially market your practice to find a buyer who is the right fit 
Utilizing the services of a practice broker will provide you with the opportunity to market your practice to a broader range of potential buyers, thereby increasing the likelihood of finding a doctor who is an ideal fit for your office as well as shortening the time frame required to complete the sale.  The broker will oversee all communication with potential buyers and their advisers, which can take a significant amount of time and effort.  Delegating this responsibility to a seasoned professional will allow you to focus on the operation of your practice and enjoy your personal time rather than spinning your wheels talking to countless potential buyers.  To protect the value of your practice during the marketing process, the broker should require each potential buyer to complete a confidentiality agreement prior to receiving any information regarding your practice and show your office only after business hours.

3. To maximize the value you receive for your practice
Your dental practice is one of your most valuable assets and the proceeds of the sale will likely be used to fund a significant portion of your retirement.  Therefore, it’s crucial that you maximize the value of your office at the time of sale.  Determining the market value of your practice, articulating the practice value to potential buyers and their advisers, and maximizing the price you receive at closing are key responsibilities of a practice broker.  Practice brokers are typically paid a commission based upon a percentage of the practice sales price.  It is in their best interest to get you the highest possible price for your practice.

4. To represent your best interest during the transition process
A dental practice broker’s goal should be to structure a win-win transaction for both parties. Rather than trying to force a square peg into a round hole, they work to ensure that the needs of the buyer are met through the opportunity that the seller is presenting. The broker also serves as a buffer between the buyer and seller to preserve the goodwill of the practice and relationship between the parties during negotiations.

5. To provide a structured closing process to ensure a smooth and timely transition of ownership
Navigating the closing process is often the most tedious and stressful part of selling a dental practice.  Once you have identified a buyer for the practice, there are numerous steps involved in completing the sale, including negotiating the practice purchase price, letter of intent, asset purchase agreement, assigning the lease, securing practice financing, announcing the sale to the staff and patients, etc.  A dental practice broker will walk you through each step of the closing process to ensure a smooth and timely transition of ownership.

These are just a few of the reasons to employ the services of an experienced practice transition consultant when selling a dental practice.  Planning in advance and building a strong team of advisers will ensure that your practice transition is a success.

-Rod Johnston, MBA. CMA