Many veterinary practice brokers suggest that you get what you pay for and feel justified in charging $5K -$10K for a practice valuation. We believe that determining the value of a practice during a sale should be included, so we include it in our contingent fee - resulting in a free appraisal for both parties. We take the time to perform a thorough and detailed valuation but believe that determining the price is a means to an end. If you need an appraisal for management purposes, not as part of a sale, we will perform a practice valuation for a competitive fee.
A veterinary practice appraisal is a detailed process that establishes a determination of value for a practice at a specific point in time. Practice valuation requires insight into our profession, financial expertise, and business know-how.
Being totally immersed exclusively in the veterinary industry provides us with the perspective necessary to render accurate and comprehensive valuations. We have an incredible reputation for providing an accurate veterinary practice valuation based on our nearly 30 years of experience in the practice transition industry.
A veterinary practice appraisal can provide a baseline value of your practice and can illuminate areas that need attention. Adjustments can be made prior to a sale that can boost the practice's total value. A veterinary practice appraisal assesses the profitability of the veterinary practice and the risk associated with the practice's ability to maintain that profitability. Finally, the value of a practice must be determined during a sale in order to set a fair and accurate price.
We use an income-based approach that determines value by capitalizing earnings. While numbers largely determine the price, Praxis considers many other factors that will ultimately affect the value and price. We determine net cash flow by analyzing tax returns and making adjustments for owner compensation and perks, capital improvements, one-time expenses, and those unrelated to daily practice operation. Next, we determine the practice's value by applying appropriate income methods of valuation to the earnings. Finally, we consider market factors such as sales data, return on investment, buyer financing, and buyer personal cash flow before reaching our final opinion.
If you need practice valuation assistance but are not ready for a full veterinary practice appraisal, we will still answer any questions you may have. Feel free to schedule a confidential, complimentary call to discuss your particular situation.