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If you want to sell your veterinary practice, you need to understand the marketplace and your operation's real value. In addition, there are plenty of myths that need busting, says David McCormick, a Pennsylvania-based Certified Valuation Analyst of veterinary practices with Simmons & Associates.
To begin with, although there are fewer veterinarians that feel called to ownership, the market for veterinary practices is active. Practices can be sold and there are buyers for one- to two-doctor practices.
Further, you need to understand that the value of your practice, McCormick says. A practice’s value is not based on a percentage of gross annual sales or the fact that you have great potential. New equipment isn't necessarily an upgrade that demands higher prices, unless it generates more income.
The value of a practice is driven by the return on owning it – meaning the profit. The profit does not include compensation for your work as a manager or a veterinarian and it is usually not what is shown on your tax return or your financial statements. Identifying your true profitability can take a bit of work but it is good...