So…after many years, serving the local community, you feel the time has finally arrived to think about selling your beloved veterinary practice and move on to pastures new! Yes, you have been a medical marvel in the veterinary world for many years now but in recent years have felt like your time within the field is coming to an end and it is time to hand over the reins to another marvel in the vocation. You desire to shake up your life, begin a new chapter and pass on the business you have worked extremely hard to forge to someone else’s capable hands.
Let’s face it, your life has revolved around your work for many years and you have dedicated most of your time to looking after the furry creatures of the world, therefore, in all honesty, it is not going to be an easy task to leave that part of your life behind. But however hard it may be, you have come to the decision that your time being the local vet is almost at its end and it is the time to move on to the next adventure life may throw your way.
There is A Lot of Hard Work to Put in Before Selling Up
Whether you are looking for a change of career or have finally hit the age of retirement, the truth is, selling your practice is one of the most important life decisions you will ever have to make. The truth is, a great deal of thought and work must go into getting everything in order, before making the final transaction. That is why it is essential that you have a clear understanding and are well aware of the important details when it comes to letting go of the reins. Here is some important advice you need to take into account when it comes to selling up.
Make Sure to Get Legal/Tax Advice!
When thinking about selling your practice it is the best idea to begin planning months and even years in advance! Ultimately, getting legal representation and other advisors involved sooner rather than later is essential when it comes to selling up. Make sure to get them on board at the earliest convenience as this will only benefit you immensely. They can provide you with the crucial knowledge and guidance needed that will aid you in making any important decisions that evidently, could minimize any future issues regarding liability and any issues concerning tax consequences.
Ensure Corporate Records Are Up to Date and Check for Any Liens that May Still Exist
Making sure the practice records are up to date and complete is vital when considering selling your business. All documents such as ownership records, licenses, operating agreements, articles of incorporation, bylaws, and business registrations should be updated before going ahead with any sale. Also, make sure to check for any liens that could remain in place. The fact is, many sellers are stunned to learn that liens still exist on their assets and any potential buyers will insist that business must be transferred totally free of any recorded liens.
Get a Valuation
Now, knowing exactly what your practice is worth is key when it comes to selling up. That’s why it is of the utmost importance to get a valuation carried out. To make sure you get an accurate appraisal, it is a smart idea to enlist a specialist who deals within veterinary practice valuations as they can provide you with their valuable knowledge, giving you a correct figure of what the practice is worth.
Review Contracts and Protect Intellectual Property
It goes without saying that contracts are an important asset and any potential buyer will be sure to carefully review any contracts with a fine-tooth comb that are assumed within the investment! That’s why it is a good idea to start by gathering a full list of contracts that have been agreed upon by the practice such as contracts for suppliers, vendors, cleaning, advisors, loan agreements, leases for equipment, and employment contracts.
Also, any potential buyer will want to make sure that any intellectual property surrounding the business has been securely protected, such as logos, trade names, and any inventions the practice has foundered. Measures taken could include filing property for patents or trademarks.
So…when looking to sell your practice keep in mind that it is best to plan way in advance, seek legal advice earlier rather than later, ensure all records and liens are managed, get a valuation carried out by an expert, and review all contracts and put measures into place to protect the intellectual property of the practice.