Tips and strategies for buying and selling a veterinary practice - Veterinary Economics
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Buying and Selling
Source: CVC IN SAN DIEGO PROCEEDINGS

Exiting or entering into 100% practice ownership: know the strategies (Proceedings)

November 1, 2010

Buying or selling a veterinary practice generally is a long and arduous process. Preparation and a good lawyer are key to smoothing the bumps along the way.

Source: CVC IN SAN DIEGO PROCEEDINGS

Preparing for partnership: setting the terms of employment (Proceedings)

November 1, 2010

High turnover among veterinary associates is caused principally by the failure of practice owners and employees to properly articulate their respective expectations and negotiate and document the employment relationship. Time and effort invested up front will help avoid mismatched expectations, misunderstandings and separation down the road.

Source: CVC IN SAN DIEGO PROCEEDINGS

Non-DVM practice ownership: to support staff and management (Proceedings)

November 1, 2010

Non-DVM practice ownership has long been the standard in most states. This is because the practice acts require it in slightly more than half the states. The remainder of the states may or may not allow non-veterinary ownership of a veterinary practice, but do not directly address the issue in their practice acts.

Source: CVC IN SAN DIEGO PROCEEDINGS

How to make a practice purchase with reduced risk and capital requirements (Proceedings)

November 1, 2010

A lower risk practice purchase means the buyer and seller both win and the practice sells. It may be obvious that win-win is best, but sales are made that are not win-win or low risk. The practice sale may be to an independent third party or to an inside person, usually an associate doctor.

Source: CVC IN SAN DIEGO PROCEEDINGS

Practice buy ins: entrance strategy or early exit strategy (Proceedings)

November 1, 2010

Exit strategy or practice succession planning can include every aspect from financial planning for retirement to where will I find a buyer. This retirement financial aspect would include planning for the future practice sale value. That is another session not covered in this topic.

Source: CVC IN SAN DIEGO PROCEEDINGS

Practice sale or practice acquisition choices: when is the timing right so I can retire? (Proceedings)

November 1, 2010

The time for a practice sale depends on the following items: timing, personal health, interest in work, motivation for work, age, stress, funds, alternative investments and alternative activities. Some say you need 15-20 times your current earnings in investment funds for retirement.

Source: CVC IN SAN DIEGO PROCEEDINGS

Pre-marital counseling for business partners (Proceedings)

November 1, 2010

Co-ownership issues often arise when veterinary practitioners enter into a partnership with other owners, or when two or more associates jointly venture into practice acquisition. In most aspects co-ownership of a veterinary practice is akin to marriage, and it is vitally important to agree on the principal terms governing the relationship before getting hitched.

Source: CVC IN SAN DIEGO PROCEEDINGS

Multiple owner agreements to prevent litigation (Proceedings)

November 1, 2010

A buy-sell agreement or shareholder's agreement or operating agreement is a written statement of plans about how owners can slow down or get out of the practice at a set time or occurrence. It is the shareholder's agreement for a corporation or an operating agreement for an LLC.

Source: CVC IN SAN DIEGO PROCEEDINGS

Succession planning for the practice, the seller, and the buyer (Proceedings)

November 1, 2010

Results of Benchmarks 2010: A Study of Well-Managed PracticesSM by Wutchiett Tumblin and Associates and Veterinary Economics reveal that a current partner, or a current or future associate is the most likely buyer in 69 percent of practices. And, one of the most important steps to take to prepare an associate for ownership is teaching them about and involving them in the business side of practice.

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