Two thirds of practices could sell for more, says veterinary business consultancy, PPS
Dr Paul Jackson PhD, FPFS, Partner at Professional Practice Services and Chartered Financial Planner, says there is scope to improve the returns from the sale of a veterinary practice, “In our experience, around two-thirds of veterinary practices are sold for less than market value and over 90% of practice owners pay too much tax, either pre or post-sale.” The company is running a series of roadshow seminars to show how to generate a selling price that reflects the hard work that has gone into creating a successful business.
The next event takes place on Thursday 5th April in Birmingham to coincide with the British Small Animal Veterinary Association (BSAVA) Congress. Tickets to this event and additional dates in Scotland are free of charge and are available online.
Selling a practice to a corporate entity is not the only the choice on the table, says Paul, and owners often feel conflicted or uncertain about the choices they face, “All partners eventually need to find a way to exit the business. It’s in everyone’s best interest if the effort that has gone into building it up is fairly and equitably rewarded if practices are to continue to attract the practice owners of tomorrow to invest.”
He continued, “We call in the experts when we sell our homes because they represent a large proportion of our personal wealth. It makes perfect sense to do the same when selling your practice, or a share in the practice.”
The seminars will cover not just attaining the best and right price for the practice but also how individuals can mitigate their tax liability. Paul says he is quite aware that not everyone finds finance as exciting as he does but for the people involved this isn’t always about funding a relaxing retirement, “We find that many vets are exiting when they are ready to take on a new challenge for the next phase of their life – adventurous travel, sailing round the world, or developing a new business from scratch can all be on the agenda. The first step to making those dreams a reality is releasing finance locked in the practice and that’s one area where we have a lot to give.”
The next ‘Maximising Practice Value’ seminar will take place at 17.30 on 5th April at Jury’s Inn in Birmingham. Refreshments will be provided before the session starts at 18.00. The roadshow continues in Scotland, on Monday 4th June at The Stirling Highland Hotel, Stirling and Tuesday 5th June at The Rox Hotel, Aberdeen.