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What is my practice worth?

Valuing a business has been described both as an art and a science. The science is the pure mathematics of calculation and the art the depth of knowledge of how a practice functions. Any valuation must be able to stand up to the scrutiny of an experienced buyer or the sale may well fail.

The most important process is to establish the underlying profitability of the practice at the time of the valuation. This is followed by an assessment of the risks involved in purchasing the business by using a multiplier of the Maintainable profit or the EBITDA (Earnings Before Interest, Tax, Depreciation & Amortisation)

The risks will be determined by the financial and commercial Due Diligence processes. The financial DD, will determine factors such as historical performance while the Commercial will include factors such as the management strength, structure and competition etc.

VBA’s sales memorandum is produced to stand up to such scrutiny.

The valuation of a veterinary company or business requires experience and expertise, and obtaining the best price requires a professional presentation combined with good negotiating skills, something which the VBA excels.

As a preliminary, when considering selling your practice The VBA offers a free valuation tool which can provide a guide to the potential worth of your practice. The algorithm can produce an indicative valuation range for your practice, which can be used as a guide to its goodwill value, however, it is dependent upon realistic input figures.

To find out more about your individual practices’ value many other factors which would need to be taken into account to provide an accurate valuation for sale purposes.

The Free valuation is for guidance only and readers should obtain advice from their financial advisors before taking any action. (see the T&C)

We can offer more in depth reports of the Algorithm which are available after completing the free valuation.

Selling your practice is a one-off opportunity so make sure you get it right.

With corporate practices now owning 70% of practices the veterinary profession has changed dramatically, however, good profitable well managed practices of the right size and in the right location can still command a high price if the sale is handled in a professional way by a team the understands the veterinary market. The successful sale of a practice still needs to have that relationship between the seller, broker and purchaser to obtain the best outcome. Direct marketing to practices has resulted in over 80% of practices being sold to the initial corporate approach without being offered on the open market, with a result that many practices have missed out on their true value.