Solutions for Veterinarian Owners Selling to Corporate Buyers
Veterinarians are focused on clinical care for their clients and practice culture for their staff, and the business side of veterinary medicine often takes a back seat.
When selling a practice, veterinary owners often seek a Corporate Buyer who can relieve them of administrative responsibilities and improve the business side of the practice. However, if the financial performance of your practice is not optimized prior to a sale, you give the upside to the Corporate Buyer…We believe veterinarian owners should reconsider this strategy and retain the increased value!
Sell to Corporate After You Have Increased Your Value
There is significantly more value for a veterinarian owner to sell to a Corporate Buyer after you have increased profit margins and improved your growth profile.
Example 1
(Common Scenario): Successful practice owner sells her $3 million revenue practice with 14% margins for 12x profit, which yields $5.0 million.
This is significant life changing value…but what if there is material upside to this the owner is not capturing?
Example 2
(PGP Partnership): The same practice owner works with PreSale Growth Partners to improve profit margins and drive top-line growth, and 1-2 years later achieves $3.5 million of revenue and 20% margins, and sells at 12x profit to yield $8.4 million.
>65% increase in value…more than $3 million in value retained!
