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Broker Tip of the Month
The market is always favorable for practices that have continual growth in value. Maintaining detailed financial records with reports of all income, expenses, and revenues will maximize the value of your practice. Focused care for equipment, office supplies, and patient growth will pay dividends for your financial position when the time comes to sell. Once listed, it is vital to exhibit sustained growth until closing.
In the last article, Dr. John Bryk explained buyer loan pre–approval, and this month I will explain how Veterinary Financing utilizes Seller Notes. Before I begin, I want to go over the basic terms used in Veterinary Financing.
Dr. Kurt Liljeberg is here to answer a question that the brokers have been receiving a lot lately. When a Doctor is considering selling their practice and Real Estate, what are the most important aspects of the physical plant or condition of the hospital that will come into play??
This is a great question and could warrant an entire article, but I will try to limit this to three
main points.
First is functionality. Is the flow of the building adequate or is everyone bumping into each
other? Are you storing dog food in an area that could easily be converted to another exam
room instead? Buyers are looking for hospitals to be able to work comfortably and have the
ability to handle increased growth for additional doctors.
Second is have you kept up with normal maintenance and repairs on the parking lot, roof,
exterior paint or siding? For the interior is the electrical in code? How are ceiling tiles? Are floor
tiles cracked or missing? Do doors and windows close correctly? These are just a few points at
best.
Third would be curb appeal. This is the easiest and least expensive to improve. Painting gives a
clean fresh look both outside and inside. Use scratch cover on woodwork, doors and cabinets.
Have the floors professionally cleaned and waxed. Change stained ceiling tiles. Make sure
landscaping is maintained and healthy looking. Your hospital will look beautiful!
1 DVM small animal clinic with three exam rooms in a beautiful 4300 square foot building. Practice is grossing $600k with over 50% cash flow! Owner retiring.
Long established SA px in northern Minneapolis suburbs grossing ≈$650K. Equipment includes digital x-ray, digital dental x-ray, in-house lab, hi-speed dental. The hospital is well maintained & well staffed. Px offered at $565K, RE at $420K. Buyer income $148K after practice expenses & mortgage.
1 DVM Small Animal practice with Real Estate. Over $450,000 Gross Revenue. Within 35 minutes of Pendleton, Oregon. This practice has an average rate of return (ROI) from 2016-2018 of 18.5%. Nearest competitor is over 5 miles away.
One DVM SA px in northeast Madison area. Revenue almost $700K. Well equipped w/ Vetscan HM5 CBC Analyzer, high speed dental, digital x-ray, Abaxis lab. Two CVTs, vet asst, office manager. Px offered at $475K. Buyer should make $160K the first year after paying for all practice expenses & mortgage.
2021 VIRTUAL Minnesota VMA Veterinary Conference February 4-6, 2021
Updates on ways to interact with TPSG's Dr. Kurt Liljeberg for this event will be updated as soon as conference organizers make that information available.
Dr. Liljeberg will be happy to answer all of your questions about: Practice Appraisals, Selling Your Practice, Practice Buy-ins/Buy-outs, Purchasing A Practice.
2021 VIRTUAL Crossroads Veterinary Conference February 5-6, 2021
Updates on ways to interact with TPSG's Dr. Kurt Liljeberg for this event will be updated as soon as conference organizers make that information available.
Dr. Liljeberg will be happy to answer all of your questions about: Practice Appraisals, Selling Your Practice, Practice Buy-ins/Buy-outs, Purchasing A Practice.
2021 VIRTUAL MIDWEST VETERINARY CONFERENCE (HOSTED BY THE OHIO VMA) February 11-13, 2021
Updates on ways to interact with TPSG's Dr. John Bryk, Dr. Bill Crank, and Dr. Kurt Liljeberg, for this event will be updated as soon as conference organizers make that information available.
They will be happy to answer all of your questions about: Practice Appraisals, Selling Your Practice, Practice Buy-ins/Buy-outs, Purchasing A Practice.
2021 AUSTIN VET April 19-20, 2021
Mark your calendar and plan to visit with Total Practice Solutions Group at Booth #140. They will be very happy to answer all of your questions about: Practice Appraisals, Selling Your Practice, Practice Buy-Ins/Buy-Outs, or Purchasing A Practice.
