Getting the most from your hospital sale

Wells Fargo Practice Finance

If you're thinking about selling your veterinary hospital within the next 5 to 10 years, now is the time to start making plans. Your objective is to build and retain hospital value in order to secure the best possible price. Follow these tips to get the most out of your hospital sale.

  • Incorporate current technology. You can generally assume that buyers who are seeking an acquisition loan to purchase your hospital will not want to take on additional debt to purchase today's technology. You can increase genuine appeal and value for the right buyer by updating the equipment in your hospital on a regular basis. In addition to setting your hospital apart from the competition at the time of sale, new technology can benefit your hospital today through improved efficiencies, greater client confidence, and more referrals. Remember that any investments designed to bring more dollars into your hospital will be likely to enhance your sale price.
  • Create future revenue for your buyer. Your buyer will want to know that your client base has the ability to generate reasonable, immediate cash flow after the sale occurs, and that the hospital is well-positioned for growth. While your inclination may be to schedule clients as they call in for urgent needs, future booking appointments when the need isn't urgent can also be desirable. Wellness visits, prescription refills, and vaccination updates booked in advance are great opportunities to transition your clients to a new doctor. A savvy buyer will want to see a genuine opportunity to generate meaningful cash flow, so maintaining a steady stream of appointments will work in your favor.
  • Keep your financial books in order. As you approach retirement, be sure you are keeping your financial records properly organized with full documentation of production levels, charges and receipts, bank deposits, and tax returns. Any discrepancies or gaps in your financial information could potentially delay the negotiation or affect the sale price.

Following these guidelines should improve your chances of gaining a higher dollar for for your career-long investment, and attracting the perfect new owner for your hospital and clients. 

To learn more, call your Wells Fargo financing specialist at 866-4MY-PAWS (866-469-7297) or visit us at wellsfargo.com/veterinarians


All financing is subject to credit approval.
© 2015 Wells Fargo Bank, N.A. All rights reserved. Wells Fargo Practice Finance is a division of Wells Fargo Bank, N.A.

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