Valuations for Veterinary Practice Owners
Grow A Practice That's Stronger, Healthier
As an owner of a veterinary practice, 50-80 percent of your net worth is tied up in your practice. That's a lot! Unfortunately, few practice owners are doing anything to invest in their business's continued growth. Like your investment portfolio, all it takes to make a big impact over a period of time is just a little strategic effort.
How Will A Business Valuation Help Grow A Veterinary Practice?
Both an art and a science, a true valuation uses vital information to tell a story. In this case, your story is essentially what the true value of your practice is today and what the value could be if you were to make certain strategic changes. We're looking at plot lines like:
- How much money could someone put into their pockets if they were to buy your business today?
- How certain are you that your earnings stream will continue?
- How your balance sheet items impact the practice's value?
Ultimately, our goal is to help you minimize risk and increase cash flow. By doing so, you will be left with a practice that's more valuable than when you started. That's what we call a happily ever after!
Why Should You Start Treating Your Practice Like An Investment?
The answer is pretty simplistic. Treating your practice like an investment will:
- Increase your practice's overall value and selling price.
- Result in higher cash flow and lower business risk, which:
- Reduces stress.
- Makes going to work more enjoyable.
- Gives you the ability to make additional investments in hospital, staff and equipment.
- Allows you to provide a higher level of patient care.
- Empower you to adequately identify, coordinate and implement an exit strategy.
If you sit back and think about it, you have some pretty specific goals for your practice. Once you take the time to identify those goals, you can take the necessary steps to make them a reality. The business valuation professionals at Rea & Associates take a unique approach to maximizing a business's true value. It's called Know & Grow and it starts with embracing an investment mindset. And having a true investment mindset is rooted in knowing the true value of your assets.
Ready To Know The True Value Of Your Practice?
The first step to growing a healthy veterinary practice is to know the true value of your practice today. The business valuation experts at Rea & Associates can help you get there. After we have this knowledge, we can work with you to implement proven strategies to minimize your risk and increase your cash flow to maximize the value of your practice.
Email or call Mary Beth Koester, CVA, at 614.889.8725 to learn how we can help you get more from your veterinary practice ownership journey. You can also learn more about the effectiveness of business valuations by catching up on our team's articles, podcasts and other insight found here.