Protecting yourself from a bad valuation

11 Feb 2021 - Simon Palmer - Vet Practice Valuations

A practice or real estate sale is usually a high-stakes transaction involving hundreds of thousands, or millions, of dollars changing hands. Quite often, the buyer and seller will base the price paid for a practice on an appraisal or valuation that has been done by an accountant.

Flattery is the infantry of negotiation in business sales

28 Jan 2021 - Simon Palmer - Practice Sales

There is a school of thought that in a price negotiation, the buyer should point out every fault, weaknesses, minor flaw and imperfection of the acquisition and talk down any strengths in order to justify giving the vendor a lower than expected price.

The Tortoise, The Hare and the Sins of Success

28 Jan 2021 - Simon Palmer - Vet Practice Sales

There is a famous Aesop’s fable about a race between a tortoise and a hare. The race starts and the hare races ahead and soon leaves the tortoise far behind. Confident of winning, the hare takes a nap towards the end of the race and when he awakens, he finds that he has lost the race.

Frequently Asked Questions about Vet Practice Valuations

13 Jan 2021 - Simon Palmer&Paolo Lencioni &Anne Lencioni - Vet Practice Sales

A valuation can be one of the most important tools in a business. It can help you with business strategy and planning, it can guide the decision to sell your practice and retirement planning. Somehow though, there is little understanding among vet practice owners surrounding:

The (unsung and underappreciated) virtues of a regional rural practice purchase

19 Aug 2020 - Simon Palmer - Vet Practice Sales

For every good practice that Practice Sale Search has for sale in one of the state capitals, we have many buyers competing with each other to submit a winning bid…and yet…when the practice is located in a regional or rural centre, the demand often dwindles …

The delayed internal sale - exit plan or ticking time bomb?

11 Mar 2020 - Simon Palmer - Practice Sales Vet Practice Sales

A popular exit plan for many vet practice owners is known as the Delayed Internal Sale.

Psychology of the Sale: Why Competition is Necessary in a Practice Sale

16 Apr 2019 - Simon Palmer - Practice Sales

When you ask someone about the variables involved in establishing the value of a veterinary practice, they will usually list the quantity and quality of the equipment, the turnover, the profit, the location, the size of the patient base and the demand for practices in the area. All of these factors (and more) are, of course, huge indicators of the expected price.

What we can learn in exit planning from Aretha Franklin and Prince

03 Jun 2019 - Simon Palmer - Practice Sales

On August 6, 2018, the “Queen of Soul” Aretha Franklin died at aged 76, after a lengthy battle with cancer. Not married, Franklin left behind four sons, aged between 48 to 63, a long-term de facto partner, an estate worth about $80 million…and no will.

Counting Chickens

15 May 2019 - Simon Palmer - Practice Sales

Despite the best of intentions, even once the framework of a practice sale is agreed, it is often still very hard to predict the exact date that a deal will settle. Even with the buyer and seller doing all that they can to prioritise and expedite the deal, a transaction can be at the mercy of the availability and circumstances of many other people’s lives, including:

The Icarus effect on Practice Sales

15 Oct 2019 - Simon Palmer - Practice Sales

In Greek mythology, the story of Icarus illustrates the folly of aiming too high. Facing imprisonment in Crete, Icarus was given wings made from feathers and wax, in order to help him escape. During the escape, Icarus ignored the warnings that came with the wings and flew too high in the sky. The higher he flew, the closer he got to the sun…which melted the wax holding the wings together. As a result, Icarus fell to his death.