#1 Clean up your profit and loss statement and file your taxes.
Buyers and sellers get nervous when they see discrepancies that cannot be explained. Therefore, failure to have a clean profit and loss statement may result in a lower sales price. It definitely will cost more in accounting fees.
#2 Talk to your financial planner and find out how much you need to live your lifestyle and sell your practice.
The vast majority of owners are depending on their practice sale (#1 asset) to fund their retirement. Failure to plan is planning to fail.
#3 Your real estate or your lease.
If you have a “free-standing building” are you paying yourself fair market value rent? Do you know the different appraisals and how you are getting the correct appraisal for your property? If not you are betting a lot of money and you may lose. If you are renting, will the lease be transferable to a new owner? If not, your name is on the lease and you are responsible. Other factors in lease agreements can positively or negatively impact sellers and buyers. Unfortunately, most owners wanting to sell are unaware of the provisions until they get ready to sell.
#4 Inventory budget.
Does your practice fall within “normal” guidelines of the AVMA or AAHA? Do you know that “less than minimum” is defined by our industry as normal percentages? So, if you carry the minimum, your number is off and you are leaving profit on the table. A LOT OF PROFIT
Charging correctly and providing the correct level of service equal to the fees is the difference between mildly profitable or extremely profitable. Most veterinarians know that they’re leaving money on the table, they just don’t know how much. This is easily fixable. Unfortunately owners do not want to address the very area that can create major change in a short time.
Do you know leaving $25,000 on the table results in a decrease of $80,000 to $100,000 on your sale price?
The truth in any sale is the price is related to the profit — not on future earnings.
My team and I find an amazing amount of money being left on the table. We successfully help sellers and buyers reach agreement.
If you have questions about this article or other articles I have written, please call me 888-462-4047. There is no charge for the initial consultation.
Randy P. Carsch DVM
Give me the opportunity and I will EARN your business
Come see us at Booth #300