So, you’re thinking of selling your veterinary practice. While it’s an exciting time, filled with the prospect of new beginnings or perhaps a well-deserved break, there’s quite a bit to mull over before making that significant decision.
One of the main areas that can’t be overlooked is the legal side of things. Let’s dive into the essential legal considerations you should be aware of to protect your interests.
- Determine the value of your practice
You can use various valuation methods, such as the income approach, market approach, or asset-based approach. Use our quick online business valuation calculator here or consider hiring a professional practice appraiser.
- Prepare your practice for sale
Gather all financial records, including income statements, balance sheets, tax returns, and any other relevant financial documents. Ensure your financials are accurate and up-to-date.
Organise contracts, leases, permits, licenses, and any other legal or operational documents related to your practice.
Address any outstanding debts, legal issues, or pending litigation. Make sure the practice is in good standing.
- Set realistic expectations
Understand that selling a practice can be a time-consuming process, and the outcome may not always meet your initial expectations in terms of price or timing.
- Identify potential buyers
Determine whether you want to sell to a competitor, an investor or an employee. Your target audience will influence your approach to marketing and negotiations.
- Confidentiality agreement
When discussing the sale with potential buyers, use a confidentiality agreement (also known as a non-disclosure agreement or NDA) to protect sensitive practice information.
- Marketing and promotion
Develop a memorandum of sale to promote your practice. Consider seeking assistance from a corporate finance specialist or broker.
- Negotiate terms
Be prepared to negotiate the terms of the sale, including the purchase price, payment structure, and any contingencies.
- Due diligence
A buyer will conduct due diligence to verify the accuracy of the information you provide. Be prepared to provide access to all necessary documents and answer their questions.
- Purchase agreement
Once you and the buyer agree on terms, work with your solicitor to draft a comprehensive purchase agreement that outlines the terms and conditions of the sale.
For expert advice on selling your practice contact our team:
0117 435 4350 | info@rubric.law
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