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Buying A Veterinary Practice

Equipment and Its Role in Veterinary Practice Valuation

Jul 25, 2017 11:46:38 AM

shutterstock_132317219.jpgYou invested thousands of dollars into equipment for your practice over the years. Now, you're ready to sell and you want to know how much that equipment is worth to a new buyer. Equipment can be an important part of any pricing strategy for your practice. Here's how it figures into the bigger picture:

Services and Competition

The type of equipment you have available directly affects the types of services you can offer. When you have equipment that nobody else has, you are also able to offer services that nobody else can. By extension, you are safeguarding a portion of your business against competitors because you're the only show in town. This contributes to the overall stability of your practice and your profits, which is a big bonus. Likewise, if you are significantly behind the competition in terms of equipment and services, expect to make an investment yourself or take a hit on the value of your practice. Obviously it doesn't help to put your business under the burden of heavy debt just to buy new equipment, but some capital investment may be in order to reach at least a minimum level of functionality.


Another important thing to consider is how well your equipment has been maintained. If you haven't already started dusting off all that testing equipment, wiping down screens and replacing broken probes, now's the time to do it. In order for your equipment to contribute favorably to your practice's value it needs to be in good repair and usable long term. Any equipment that is outdated or broken is simply a liability to the buyer that will have to be repaired or replaced. Remove old, broken equipment from the office so it doesn't cast a shadow over all of the good equipment you do have. You don't necessarily need to spend a ton on the latest and greatest equipment, you just need to be sure that a new owner will have the tools necessary to work with it in the first place.

In order to get the highest value for your veterinary practice you need to have a exit strategy in place. Updating and repairing equipment needs to be a part of this exit strategy. The farther out you begin preparing your practice for sale, the more time you will have to address equipment issues and make sure that you have the best possible combination of equipment to keep your business viable under a new owner.

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