In the last few years, there have been some big changes in the market for veterinary businesses. From a decline in the corporate market to changes in interest rates, there’s no shortage of new challenges for veterinary practice owners to navigate. Here are things to keep in mind as you prepare and update your current business plan.
Responding to a Corporate Market Decline
Experts predict that it will take several years minimum for the corporate market to rebound from its current state. This can be troubling news for owners in the late stages of their exit plans. It may also be worrisome for veterinary business owners five years or so from their intended retirement.
A veterinary practice valuation will help you identify the strengths and weaknesses of your veterinary business as you prepare for the future. It also creates a roadmap, showing you how to increase the value of your business no matter what state the market is in.
A corporate buyout isn’t the only option for veterinary business owners. However, all great exit strategies take time. It’s not too early to begin preparation if you plan to retire in the next five years.
Evaluating with Benchmarks
Checking profit and loss statements helps you understand which areas of your business produce the bulk of your profits and identify which areas are losing money. How do your profit margins compare to established benchmarks? Check your veterinary business against established benchmarks. Look at areas such as cost of goods, salaries or staff costs compared to professional production, and ensure your financial records are accurate and up-to-date.
What’s Your Five-Year Plan?
Understanding the current health of your business helps you accurately prepare for the future. A veterinary practice valuation provides a detailed view of the health and value of your business and offers key insights into how to grow that value and realize maximum profits. Contact us today to get started.