What the buyer is paying for
Buyers value a clinic on the cash left after a fair doctor salary is paid. If you are the main doctor, they subtract what it costs to hire one, which can lower the number from what you expect.
Brokers then apply a multiple based on how steady and transferable the earnings look.
Will clients stay?
Revenue tied to one doctor's personal following is discounted. A clinic with several doctors, long tenured staff and a loyal client base looks safer.
Plan a transition where the buyer works beside you for a period. Put what you will and will not provide in writing.
Records, equipment and supplies
Buyers check that records are organized and that equipment is current, from imaging to lab machines. They also look at inventory of drugs and supplies and how it is tracked.
Boarding, grooming and add on income
Add on services often have strong margins and bring clients back. Show the revenue and profit by service line so buyers can see where the money comes from.
Real estate and the lease
If you own the building, buyers may want to lease it instead of buying it. Ask for a separate opinion of the property value so you can choose among selling both, selling the practice and renting, or holding the real estate.
Read about lease approval if you rent.
Getting ready
Keep the books reconciled and the client list clean. Read about keeping a sale quiet and how buyers finance a purchase. When you are ready, request a price range.
Who Writes the Check
- Corporate veterinary groupWants established clinics with steady client lists and doctors who are willing to stay.
- Associate veterinarian ready to ownKnows the clients and needs strong books so a lender will back the purchase.
- Pet services operatorLikes boarding, grooming and training income that can grow alongside the clinic.