Selling to an Individual Buyer or a Corporate Buyer is Going to Take Time! Start Planning NOW!
By: Steve Kikikis, Vice President, Broker
Retirement…. Ah, that sounds nice! Right? But the process requires careful planning, especially when it comes to selling your veterinary practice. While the idea of selling may seem straightforward, the reality often proves to be far more complex. Selling a veterinary office isn’t putting up a “For Sale” sign and waiting for buyers to come knocking. Whether it’s finding the “right” individual buyer or selling to a corporation with a complex work agreement, veterinarians should start planning to sell their practice at least three years before they’re ready to retire. Omni Practice Group can help you determine your timing now.
Lack of Buyers for Individual Sales and Extensive Due Diligence.
Selling a veterinary practice to an individual buyer is a lengthy process. Depending on your location and type of practice, it can take anywhere from twelve months and up to thirty-six months for remote locations or “unique” practices. The greatest time factor in this scenario is the shortage of buyers across the nation. Potential purchasers are scarce, particularly those who meet the criteria and financial requirements necessary to acquire a veterinary practice. Fewer and fewer individuals are signing up to become practice owners and are willing to work the five days a week that may be required for a successful practice; instead many are opting to remain associates. That being said, good practices in good locations that are well managed do sell reasonably quick.
Omni Practice Group and I work hard to market your practice to potential individuals in as many ways as possible. We place classified ads with state and local veterinary associations, national publications, and veterinary school alumni websites and newsletters. We put on buyers’ seminars, attend conferences, speak at schools, and we work diligently to maintain an extensive database of potential buyers; ensuring if there is a doctor considering buying, they will see your practice (confidentially of course). We leave no stone unturned. Once we have found a buyer, they will need time to thoroughly evaluate the practice’s financials, client base, operational procedures, secure financing, negotiate terms, and other critical aspects. This thorough due diligence helps ensure that the buyer understands the investment they’re making and helps them assess the practice’s viability and potential for future success. But it takes time!
Whether you’re five years away or five months away from selling your practice, there’s no time like the present to not only start thinking but also to start planning for your transition. We are happy to help in any way we can and offer a free transition plan consultation. We’re only a phone call (or e-mail away) Call Steve Kikikis at 425-905-6920 or email at steve@omni-pg.com