Veterinary practice valuation:
What’s your practice worth?
You’ve invested time, money, and so much of yourself into your business. Now, it’s time to find out what that business is worth. There are several instances when knowing the value of your veterinary practice is useful or necessary, and the veterinary practice valuation experts at WTA can help you through all of them:
- Selling all or part or your veterinary practice
- Planning for retirement
- Divorce and/or dissolution of partnership
- Developing an exit strategy
- Creating a mentorship program to teach an associate who’s buying into your practice about the business side of veterinary medicine
- Structuring a buy/sell agreement
- Seeking guidance through the selling or buying process
Our veterinary practice valuation services include a certified Valuation Report, which is a thorough and well-documented appraisal of your practice, complete with explanations of how we arrived at the value. We also provide practice management recommendations and suggestions for ways to increase the value of your practice.
Not sure you need a full practice valuation? Whether you’re a potential buyer or a seller, WTA has a veterinary practice valuation service to fit your needs.
Veterinary practice valuation services for sellers
- Veterinary Ownership Transition — The sale of an interest in your veterinary practice is a process, and the process begins 5 to 10 years before the actual sale occurs. A study of Well-Managed Practices® by WTA and Veterinary Economics revealed that a current partner or current or future associate is the most likely buyer in the majority of veterinary practices. Sometimes, due to a lack of knowledge, training, and preparation for ownership, an associate can become overwhelmed and might back out of the purchase. WTA’s Veterinary Ownership Transition service is a 12+ month process that serves as a mentorship program to prepare your associate for ownership.
- Transition Planning Profile — Your practice is perhaps your largest investment. Do you know what it’s worth? The veterinary practice consultants and practice valuation experts of WTA developed the Transition Planning Profile service to provide an estimate of the value of your practice for planning purposes without going through the full valuation process until a sale occurs. We’ll work with you to determine the estimated value of your practice, identify the opportunities to improve profitability and value, and create an action plan to implement the changes necessary to hit your target value.
Veterinary practice valuation services for prospective buyers
- Cash flow analysis — As you know, cash is essential for starting, operating, and expanding a practice. And, proper cash flow management is critical for maintaining and growing a successful veterinary practice. The WTA veterinary practice valuation experts can help determine the cash flow of the veterinary practice you plan to purchase, so you’ll have a clear understanding of what your finances will look like after the purchase.
- Affordability analysis — If you’re an associate planning to buy-in to a veterinary hospital, the affordability analysis from WTA’s veterinary practice valuation team will be crucial in preparing you for the buy-in process. The purpose of the affordability analysis is to help you understand how you will afford to buy a portion of the practice and how your cash inflows and outflows will change over the life of your loan. You’ll learn how your equity in the practice will grow, how your income will increase, and how much cash will be left after making your loan payments.