Veterinary practice owners often focus on the best times to sell, but it’s equally important to know when not to sell. Here are some situations where waiting may be the better option:
- You’re Not Ready Mentally: Selling a practice requires emotional and mental readiness. If you’re unsure, there’s no downside to finding its value, but you may want to hold off on selling the practice until you’re fully committed to the idea.
- Lost Associates: If you’ve recently lost a key associate and don’t think you can replace them within the next six to nine months, your practice valuation may suffer. Buyers want to see a stable team, so waiting to hire and stabilize your practice could be beneficial.
- Financials Aren’t in Order: Your financials need to be well-organized before going to market. If your accounting isn’t clear or accurate, it can reduce buyer confidence, leading to a lower valuation or fewer offers. Ensuring your EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) is between 20% and 25% of revenue can put you in a stronger position.
- Revenue Issues: Practices with revenue below $1.8 to $2 million might struggle to attract high offers. Improving revenue and stabilizing production across doctors can help you achieve a better valuation.
If you’re unsure whether now is the right time to sell, reach out to us for a no-obligation conversation. We can review your financials and provide advice on how to maximize your practice’s value. Whether it’s a matter of hiring, improving financials, or fine-tuning operations, proper preparation can make a significant difference in the sales process.
For those in the early stages of considering a sale, feel free to reach out to us for personalized advice tailored to your practice’s unique situation.