How would you like to cash in on your hard work and dedication and be able to enjoy financial freedom for you and your family?
Selling your practice is a big decision, but with demand at historic levels, now may be the best time to cash in. By selling now, rather than later, you will get a higher valuation and sale price allowing you to put money away so you can enjoy a comfortable financial position. Or better yet, you can invest it and put your money to work for you. The mutual fund market averages 10% returns year over year. With returns like that, $5 million could create $500,000 of income every year!
Many of the veterinary clinic owners I speak with tell me about the challenges face when owning a practice. One such stressor is losing DVMs. This change alone can crush your revenue stream. It can take months – if not years – to find a replacement and return to your original position. This doesn’t account for the additional stress caused by your other employees picking up the extra weight until a replacement is found. When you are the owner, you are constantly dealing with challenges and juggling issues, including covering shifts when someone calls in sick, dealing with angry or upset customers, IT issues, managing leasehold improvements and much more. Most owner operators tirelessly trained to take care of furry friends – and love that part of the job! All the other headaches of running a practice take that focus away from what you truly enjoy.
Now is the perfect time to remove the management burden from your job and set yourself up for long-term financial success. Selling your practice to a group buyer allows you to do the job you love while handing off the stressors and challenges that come with being the owner. Groups can offer you – and your team – better comp packages, better benefits, and support. Plus, when someone calls in sick on your day off its no longer your problem!
One final point, I want to make is about the market and timing. The market for veterinary practices in 2021 was awash in buyers hoping to scoop up every practice possible and competition was fierce for every deal. In 2022, the market is still hot, but it is starting to taper off. Now may be the highest prices we will see for a while, with the market indicating that sales are starting to slow and interest rates are rising. If you are interested in learning more about what your practice could sell for, we are happy to set up a conversation with you. Don’t sit on the sidelines and miss this opportunity!