As a practice transition specialist, I am often asked, “Is now a good time to sell my practice?” While there are many factors involved in making this decision, the short answer is YES. Here are a few reasons…
- High Demand — The substantial increase in the profitability of veterinary practices and a significant increase in vet school applicants over the past 10 years has resulted in the pool of potential buyers increasing dramatically. This trend is expected to continue in the near future. With a surge in the number of potential buyers comes an increase in the demand for quality practice acquisition opportunities.
- Shortage of Practices Available for Purchase — Many doctors, who are well within retirement age, delayed the sale of their practices due to the recession. As a result, there have been fewer practice acquisition opportunities available over the past few years. The increase in demand, coupled with a limited supply of quality opportunities, results in an increase in the value and marketability of veterinary practices.
- High Cost of Practice Start-Ups — Another contributing factor is the rising cost of establishing a new practice. The prices of equipment, technology, and leasehold improvements have increased dramatically over the past decade, resulting in an average cost of approximately $400,000+ to start a new practice. Combined with the significant living expense needs of most graduates (due in large part to a high level of student loan debt) and the time and cost required to start a practice and generate a profit, many doctors focus on purchasing an established practice rather than pursuing a startup.
The factors we have discussed in this article make NOW an ideal time to consider a practice transition. If you are considering a practice transition, don’t go it alone. I will help you formulate a transition strategy to meet your individual needs, confidentially market your practice to find a buyer who is the right fit for your office, provide a structured closing process to facilitate a smooth and timely transition, and maximize the value you receive for your practice.
Please contact me directly at 469-867-3647. I do not charge to answer questions.
Randy P. Carsch DVM
Give me the opportunity and I will EARN your business