If you’re considering selling your veterinary practice, understanding the process is essential. Matt Arena, CEO of 360 Vet Sales, recently shared a detailed walkthrough of how the process works from start to finish. Here’s an overview of what to expect:
Preparing to Sell
Before you can go to market, it’s crucial to ensure your practice is running smoothly and efficiently. This means gathering important documents like financial statements, production reports, and payroll data. These details provide potential buyers with a clear picture of your practice’s current value and operations. Having all of this ready beforehand helps streamline the process and gives you a solid starting point.
Valuation and Market Strategy
The next step involves conducting a thorough valuation of your practice, which gives you an idea of what it’s worth. At 360 Vet Sales, this valuation is complimentary and helps guide the selling process. Once the valuation is complete, Matt and his team prepare marketing materials and launch the practice on the market, targeting potential buyers who align with your goals and vision for the future of your practice.
The Offer Process
After going to market, the typical timeline for receiving offers is around 4-6 weeks. These offers usually come in the form of an Indication of Interest (IOI) or a Letter of Intent (LOI). During this phase, prospective buyers will often want to visit your practice, ask questions, and meet with you to gain a better understanding of what they might be investing in. It’s also when negotiations between you and the buyers, facilitated by your broker, take place.
Reviewing and Selecting Offers
Once the offers are in, the next step is to sit down and thoroughly review them. This is where you decide which offer best aligns with your financial and personal goals. Choosing the right offer isn’t just about the highest bid; it’s about finding a buyer who fits your culture and vision for the practice’s future.
Due Diligence and Closing
After selecting a buyer, you’ll move into the due diligence phase, which usually lasts between 60-90 days. During this time, the buyer will request additional documentation and reports as they finalize the deal. This phase is essential for ironing out final details and preparing for a smooth transition. The buyer will also work closely with you and your staff to ensure the practice runs smoothly post-sale, often through employment and other agreements for the transition period.
A Partnership Beyond the Sale
One critical aspect of selling your veterinary practice is the ongoing relationship with the buyer. Many buyers want to maintain the culture and operational success you’ve built, so they often focus on understanding your staff, procedures, and overall practice ethos. A good fit culturally can make for a smoother transition and a better experience for both you and your team post-sale.
If you’re interested in learning more or have specific questions about selling your veterinary practice, don’t hesitate to contact Kia or Matt at 360 Vet Sales. They’re here to guide you every step of the way.