Simmons Veterinary Practice Sales & Appraisals

“Excellent experience overall – very helpful with expertise in obtaining lenders, legal advice and many other aspects. I would strongly recommend to others.”

Johan Nieuwoudt, DVM

Since 1977, Simmons & Associates has been a trusted business advisor and broker to thousands of veterinarians buying and selling practices. We specialize exclusively in veterinary practice sales, valuations, and negotiations. Each Simmons office is led by associates who are known experts in the fields of veterinary practice valuations and sales. They have business savvy, experience and education in current valuation techniques and financing. Clients have confidence in them as they would a trusted friend. Simmons’ brokers are singularly focused and totally immersed in veterinary practice transitions and the veterinary industry exclusively and can offer sound advice to both buyers and sellers.

Experience is everything in business. Simmons was

With our extensive knowledge, buyers and sellers can

the first veterinary practice brokerage company in our

confidently reach for expert advice with a simple call to

profession. No individual or firm has helped more

any one of Simmons’ international offices.

veterinarians achieve their dream of ownership or sale.

Let us put our decades of success to work for you.

Practice Sales | Practice Appraisals | Buyer Agency | Sale Facilitation | Exit Strategy

“Your integrity and straight forward approach made us feel comfortable that our best interest was being fully served. Such an important step in one’s career should be made with careful consideration. Each situation is unique, and you had a grasp of all of the issues that were important to both the buyer and seller.”

Wendy Welsh, DVM

International Reach – Regional Expertise

Contact Us

Call us today to speak with a Simmons associate. We’ll answer all of your questions, regardless of how simple or complex. We have an office in your area; so no matter where you’re located or what your goals, Simmons can put our expertise to work for you.

Simmons Great Lakes

Simmons Northwest

Michigan, Indiana, and Ohio

Idaho, Washington, Oregon, and Alaska

P (888) 746-3717 or (814) 466-7171

P (208) 664-3100

Email: greatlakes@simmonsinc.com

Email: northwest@simmonsinc.com

Simmons Northeast

Simmons Southcentral

Simmons Southwest

Maine, Vermont, New Hampshire, Connecticut, New York, Massachusetts, and Rhode Island

Arkansas,Oklahoma, and Texas

New Mexico, Arizona, and Nevada

P (800) 982-8033 or (972) 486-3993

P (877) 315-1954 or (209) 845-2088

P (800) 474-4775

Email: southcentral@simmonsinc.com

Email: southwest@simmonsinc.com

Simmons Midwest

Simmons Pacific California and Hawaii

Pennsylvania, Delaware, Maryland, New Jersey, Virginia, and West Virginia

Wisconsin, Illinois, Minnesota, Iowa, Missouri, North Dakota, South Dakota, Nebraska, and Kansas

P (888) 881-7084 or (814) 466-7084

P (877) 322-6465

Email: midatlantic@simmonsinc.com

Email: midwest@simmonsinc.com

Simmons Southeast

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North Carolina, South Carolina, Georgia, and Florida

Montana, Wyoming, Colorado, and Utah

P (800) 333-1984 or (912) 638-6578

Email: intermountain@simmonsinc.com

Email: northeast@simmonsinc.com

Simmons Mid-Atlantic

P (877) 315-1954 or (209) 845-2088 Email: pacific@simmonsinc.com

P (303) 981-7888

Email: southeast@simmonsinc.com

Simmons MidSouth

Kentucky, Tennessee, Alabama, Mississippi, and Louisiana

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P (519) 383-4438 Email: canada@simmonsinc.com

P (256) 650-8387 Email: midsouth@simmonsinc.com

www.simmonsinc.com

You can also visit us on the web for a library of helpful articles, view practices for sale and a listing of events and meetings Simmons advisors will be attending.

How Practices are Valued and Priced How do we value practices?

As the first and oldest veterinary practice brokerage, Simmons uses progressive practice valuation methods to determine the accurate value of today’s practices.

We don’t follow the method of a percentage of gross income because it doesn’t give a true representation of the practice’s past and future earnings performance.

Instead, we use a more precise income-based approach that determines value by capitalizing earnings.

Many factors are considered when determining a practice’s value.

Simmons will examine practice profitability, net cash flow, practice growth, transferability of income to a new owner, client loyalty, geographic location, facility appearance, goodwill, value of tangible assets, quality of employees, and the exiting owner’s transition timeline. While numbers largely determine the sale price, Simmons considers many other factors that will ultimately affect the value and price.

As part of our practice valuation process, we determine net cash flow using tax returns and considering 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.

What affects pricing?

Before reaching our final opinion of value, we consider the following “sanity” tests:

•

Does the practice’s price fit our company’s extensive market data and experience based on three decades of practice sales statistics?

•

Does the price provide an appropriate personal income for the new owner?

•

Does the price allow for a reasonable return on the buyer’s investment?

•

Are the price and terms such that the buyer will be able to obtain commercial financing?

As you can see, practice valuation requires insight into our profession, financial expertise, and business know-how. Old rules of thumb, such as practice value equals one times gross, should be retired for more sophisticated and accurate methodology. Simmons uses standards embraced by the appraisal community and contributes to practice valuation methods.

“Valuing my practice was an eye opening experience. Now I know what to do to improve my practice’s financial health and value.”

Jim Connell, DVM

Selling a veterinary practice is often the largest financial transaction made during a doctor’s lifetime and involves much more than just setting a price.

“I attempted to sell my practice without the assistance of a broker without success. Simmons assimilated a group of individuals that provided the expertise to maintain the momentum in order to market and sell my practice and real estate in six months. It was a very positive experience.”

Mary Sue McGovern, DVM

“From the very beginning of the practice analysis to the closing, Simmons was always available to guide me through the sale of my practice. They targeted many potential buyers, contacting them by mail, e-mail, and phone, and through journal ads and flyers. I was kept informed at all times of who had been contacted and what information had been released. The process was as user friendly as any such major financial transaction could possibly be.”

Sandra C. Kudrak, DVM, Diplomate ABVP

Simmons & Associates can help take you through all of the steps of selling your practice, from a valuation to closing negotiations. We have sold more veterinary practices than any company or individual in the world.

We use the latest valuation methods, coupled with a

Preparing your practice for sale, exit strategies How do I get ready to sell my practice?

proprietary market comparable method, which uses

Once you decide to sell your practice, you can work with

actual sales and valuation statistics that we’ve collected

your Simmons’ advisor to develop an exit strategy that will

for three decades. Our marketing methods get results

encourage a smooth sale and potentially mean a higher

for sellers because we use multiple approaches,

selling price. Planning three to five years ahead for a sale

including an active national buyer database, national

will help you maximize practice value and minimize the

and regional journal advertisements, Simmons’ website

emotions of walking away from the practice you’ve spent a

posting, mailings to prospective buyers, and networking

career building.

with colleagues.

Whether you’re selling a companion, equine, mixed, or large animal practice, Simmons can guide you through

Your future depends on a successful practice sale.

every step of the selling process, from setting the right price to finding financing for an interested buyer. We take you from the first handshake with a potential buyer to the day you hold the closing check in your hand.

Selling a practice is a significant business decision that affects your future income and retirement. That’s why you need Simmons’ expertise.

www.simmonsinc.com

You can also visit us on the web for updated articles about selling your practice.

Selling your Practice

Here’s a checklist to prepare your practice for sale:

Practice valuation—A valuation sets a baseline of your practice value

Staff training and morale—A sharp support staff is a valuable

and can illuminate areas that need attention. With advanced planning, you

business asset. Well-trained paraprofessionals who enjoy working at your

can make adjustments over time that will boost the practice’s total value.

practice will be a huge selling point to the buyer. We also can advise you on when and how to tell your staff that you’re selling the practice.

Exit strategy—If the value of your practice does not meet your expectations, you may want to consider a formal, written Exit Strategy

Non-compete agreements with key personnel—This is an

Report. We’ll gather information to suggest improvements and enhance the

absolute must when selling a practice. When a buyer invests large sums of

value and salability of your practice when the time is right to sell. We present

money in a practice, he or she wants assurance that associate veterinarians,

our opinions and possible solutions in a written report. With each new tax

and possibly even managers and key employees, will not open a competing

return, we’ll prepare an updated report and have conference calls to track

practice. An attorney can draft enforceable agreements (assuming that they

progress. Exit strategy planning will fully prepare you to sell your practice.

are legal in your state) that also are transferable to the new owner.

Marketing plan—You want to improve your practice’s image to attract

Environmental and zoning concerns—If you own your real

more and better clients, ultimately improving the bottom line. It’s the

estate, make sure there are no environmental red flags such as buried tanks

perfect time to brand your business by updating your brochure, logo, client

or contaminated soil. Check for non-conforming zoning before listing your

handouts, business cards, website, and every item with your practice name.

practice. Failure to do so can prove costly.

Your sharp public face also will catch the eye of interested buyers.

Fee increases—Timely fee adjustment is a good business practice that Estate plan—If you’re selling your practice and retiring, you need to

maintains cash flow. Clients seldom notice small, regular fee increases, and the

make sure that your practice sale meets your income needs. Changes may

average charge per transaction can raise your practice’s income substantially.

need to be implemented now to get maximum benefit from the large influx of cash after the sale.

Expense control—For every $1 in expense reduction, the earnings will increase by $1 and your practice value will go up by $3 to $6. Watch your inventory turns, capital expenditures, and even personal expenses paid through the business. Clean up your books to support your asking price and show there is nothing to hide. Give equal attention to reducing your accounts receivable, which can raise questions about the quality of your clientele.

Leases—If you lease your facility, confirm that your lease is transferable and that you can be released from the lease once the practice is sold.

Also check leases on equipment as well as notes owed. Some notes have “due on sale” clauses that require pay-off at closing.

Equipment upgrades and repairs—Complete minor repair or replacement of equipment as if you were going to remain the owner of the practice. Avoid buying expensive or non-productive equipment just before a sale because the practice won’t increase in value by the amount spent on new equipment. Practices are priced based on the income generated from services using the present equipment.

Facility spruce up—A thorough cleaning, fresh coat of paint inside and out, and minor repairs can showcase your practice as move-in ready to a potential buyer. Curb appeal can confirm the buyer’s decision to purchase and leave fewer imperfections to haggle over before closing.

Assemble your professional team—Your Simmons’ advisor can work closely with your accountant and attorney. We can aid other advisors so your best interests are maintained. Good advisors will earn their fees by saving or making money for their clients as well as minimizing their clients’ risks.

What can we do for sellers?

Simmons & Associates can handle your practice sale

Option B : Facilitation when you’re selling to an associate

from start to finish or provide expertise for a specific

veterinarian or other known buyer

service. We offer full representation, practice valuation,

As a facilitator, we would assist both you and your colleague through the

facilitation, negotiations, and sample sales contracts

steps of the practice sale with both sharing the cost. We would handle all of

and letters of intent. When selling your practice, you’ll

the details through closing. Having an outside expert facilitate your sale can help you ease the transition with employees and vendors, resolve concerns

want the expertise of the nation’s largest and most

that may arise during negotiations, and ensure a collegial relationship

experienced brokerage firm, Simmons & Associates.

between the buyer and seller after the sale because we want both parties to leave the closing table with positive feelings toward each other.

Our facilitator service includes but is not limited to:

As a seller, you can work with Simmons in the following ways:

•

A practice valuation (fair market analysis) unless the price is already set

Option A : Full listing and representation with Simmons

When you list your practice with us, we will represent you and your best interests. We will weed out “window shoppers,” dealing with only serious

buyers and their advisors such as an accountant and/or attorney.

This frees you up to continue practicing medicine without business

interruption. Listing your practice includes but is not limited to:

• A practice valuation (fair market analysis) • All costs related to marketing the practice locally, regionally,

and nationally

preferred lender

• Sample contract for attorney review and modification • Aid in structuring the transaction (allocations, terms,

non-competes, etc.)

• • •

Attorney, accountant, insurance agents, and lender referrals Expert advice from negotiations to closing Working with the closing agent to keep everything moving forward

Option C : Written practice valuation

we arrived at your practice’s value. The report details each part of our analysis. Our clients often comment on the detailed, clear, and precise explanation of our methodology and thought process. When representing yourself, this is a vital instrument that you can provide to the buyer and his or her advisors to support your asking price. You will complete

•

Working with the closing agent to keep everything moving forward

Assistance in obtaining financing for the buyer

A written valuation is a formal document that describes how and why

Sample contract for attorney review and modification

•

• Access to Simmons’ national database of buyers • Negotiations between you and the buyer and/or their advisors • Assisting the buyer in obtaining financing from a Simmons’

Negotiating all details between the seller and buyer

Aid in structuring the transaction (allocations, terms, non-competes, etc.)

• • •

• Expert advice from listing to closing

a practice information form and provide financial statements. Your Simmons’ advisor also will talk with you to gather and confirm accurate details. A written practice valuation can be completed quickly once your complete practice information has been submitted.

“Simmons implemented a nationwide advertising campaign and personally responded to all inquiries. This allowed me to continue practicing veterinary medicine and operating my business with minimal interruption. My practice sold within a few months and Simmons handled all closing details in a timely and efficient manner.”

Larry A. Eld, DVM

How will you market my practice?

Once a professional valuator establishes your practice’s fair market value, your practice is ready to sell. Simmons will prepare a detailed profile of your practice to share with qualified buyers who have signed a confidentiality agreement. The practice profile summaries key business areas such as:

• • • • • • •

• • • • •

Summary of medical services

Our national marketing efforts

Competitive overview

Our services include developing a tailored marketing plan to sell your

Facility and real estate description

practice. Once we list your practice, we will notify our database of buyers. A Staff summary by position, length of service, and salary

sale could be made from this source even before your practice appears on the open market. Simmons also advertises in national journals and state and

Productivity indicators such as average charge per transaction,

provincial newsletters. Your practice listing will appear on

average number of transactions per day, and gross daily income

www.simmonsinc.com, where buyers also can find helpful articles on the buying process and complete a confidentiality agreement to receive more

Reasons for selling

information. Simmons can send regional mailings to veterinarians who may

Equipment list

Practice history

be interested in buying your practice. During all marketing, your practice

Financial snapshot, including recent gross income, cash flow

name and location is not released until the buyer signs a confidentiality/non-

analysis, and earnings analysis

disclosure statement, protecting you from “window shoppers.”

Practice and real estate price

As part of the selling process, Simmons can work with our preferred network of lenders to get your practice pre-approved for financing. This

Potential buyer’s after-debt scenarios

speeds the closing process and reassures qualified buyers who are ready to make a decision. When a serious buyer is ready to begin negotiations or

Snapshot of practice opportunities and potential growth areas

involve his or her accountant or attorney, Simmons can provide tax returns,

for the new owner

cash flow and earnings’ analysis, and additional information that may be requested.

• • •

Pictures of the exterior and interior of the practice

Maps to show practice location Demographics on population and economic growth, business climate, and area attractions

Veterinarians looking for purchase opportunities can subscribe to the Simmons Practice Watch program. They will be instantly notified when a practice becomes available in their area putting your practice information in the hands of prospective buyers.

“Since retirement, I have done some traveling, have taken up kayaking and spent more time with my grandkids. You all have helped to make all of this possible and I am very grateful for your hard work on my behalf. Be proud of the work you do.

Your organizational skills, attention to detail, and most importantly, your people skills are top notch. Thanks again for making my plans come true.”

J. McClellan, DVM

Understanding the negotiation process.

Selling your veterinary practice will likely be the single most important financial transaction of your career, and you need a trusted advisor on your side. The skill and expertise of Simmons can help you set a fair price, advertise your practice, screen all inquires, locate a buyer, help with financing, and bring the deal to a close.

Your Simmons’ associate puts your interests above all else, focusing on the details and timeline to sell your practice so you can keep practicing veterinary medicine until the sale is final.

Because Simmons’ brokers are totally immersed in veterinary practice transitions and the veterinary industry exclusively, they can offer firsthand advice to guide the seller and buyer through the entire process. Many buyers are first-time owners and will require assistance, patience, and understanding. We can hold the buyer’s hand through the entire transaction, including negotiations and financing. Your Simmons’ advisor will play a significant role from the start, demonstrating your practice’s historical and projected economic picture to the buyer. We’ll help prepare the offer, negotiate terms, and even collaborate with your attorney. Once the buyer signs the contract, we coordinate the entire transaction, including financing, resolving contract contingencies, and handing the keys to the new owner and the closing check to you. Although the buyer knows that we represent the seller, we gain the buyer’s confidence by understanding his or her needs and clearly explaining the economic capabilities of your practice. We strive to structure the terms and price so it’s fair to both sides. For this reason, we take pride in creating a win-win transaction for both the buyer and seller.

“Your persistence, attention to detail and negotiating skills helped close a complicated sale. Even my attorney remarked at your ability to navigate the tangled web of banks, attorneys, owners, lien holders, accountants, the buyer, and my own emotions.”

Marc Cohen, DVM

Ready to put on the finishing touches?

First impressions are important in selling any practice.

If your practice could use some sprucing up, where should you start? First, concentrate on the reception area and exam rooms because clients judge you on these public areas. If these areas are clean, bright, and inviting, you’ll attract and keep both clients and

you have. A fresh coat of paint and colorful artwork with animal themes can add vibrant life to your practice image. Make sure chairs, cushions, and office furniture aren’t worn out or patched. Clients as well as potential buyers will assume the rest of the hospital is in the same tattered shape. Worn linoleum with a hole is such a part of your daily environment that you hardly see it anymore. There are many new ways to patch floors, even disguising the patch as a deliberate design. Ask a friend to walk through your hospital and point out needed repairs and improvements. You might be surprised at what

potential buyers.

they see that you don’t.

Styles in office décor change, and some practices still have dark wooden

Finally, don’t start a huge renovation or invest in dramatic changes. Your

paneling that was popular decades ago. Paint it to give your practice a

taste may not be the same as the new owner’s. Some buyers factor in a

modern, updated look. Like it or not, looks count. Don’t spend a fortune

complete remodel in their expenses, while others watch every penny and

tearing down walls and implementing a major facelift. Work with what

change nothing at all. Let your Simmons’ advisor give you an honest opinion.

(Testimonial) “Simmons followed up on every one of their promises, marketing the practice in a “Simmons followed up onprofessional every one ofmanner, their promises, practice professional a getting marketing a fair price,the and findinginaabuyer that wasmanner, a good getting fit. fair price, and finding a buyer a good The right buyer was important to my two father and me Thethat rightwas buyer was fit. especially important to especially my father and me because employees because two employees have been with us more than 15 years.

We wanted to ensure they could still have jobs with have been with us more than 15 years. We wanted to ensure they could still have jobs the new owner. Simmons met theseowner. promises with professionalism, care, and with respect for all involved,” Jon R. withall theofnew Simmons met all of these promises professionalism, care, and respect for all involved.”

Pennell, DVM Jon R. Pennell, DVM

Buying a practice may be the largest financial transaction of your life. That’s why you need Simmons to help you become a successful practice owner. Let us put our decades of success to work for you.

Buying a practice may be the largest financial transaction of your life. That’s why you need Simmons to help you become a successful practice owner. Let us put our decades of success to work for you.

I want to say thank you! There is no way we could have accomplished this sale and remained sane. I have realized my dream of being a practice owner!”

R. Westwood, DVM

“I want to thank you and your associates for some of the most professional, prompt, and courteous service. After dealing with a few other brokerage firms, I was impressed by the presentation package you sent me. The time and effort you put into generating such a comprehensive, organized, and well-presented information packet was very much appreciated.”

David D’Souza, DVM

Simmons & Associates can help you achieve your dream of practice ownership. Becoming a practice owner lets you set the medical quality and level of client service and opens opportunities for financial achievement. Whether you’re looking for a companion, equine, mixed, or large animal practice, Simmons can guide you through every step of the buying process, from identifying the practice that’s the right fit for you to providing sample closing contracts and relationships with

Why should you buy a veterinary practice?

There is no greater personal satisfaction than to have a thriving business and know that you were responsible for its success. Besides setting the standards of care and level of client service you desire, the financial benefits of practice ownership can be significant.

lenders. We take you from the first handshake to the first day you hold the keys to the practice in your hands.

Practice owners earn three paychecks; one each for production, management, and ownership.

It is our duty to be fair to both the buyer and seller.

Increased income can give you freedom from educational debt and let you take charge of your financial future, building a business with tremendous equity and net worth. Simmons works with many doctors who consider practice ownership after several years as associate

www.simmonsinc.com

You can also visit us

veterinarians, having learned the ropes and

on the web for updated

now prepared to lead their own practices with a

articles about buying

passionate vision.

a practice.

Buying a Practice

What are the steps of the buying process?

Simmons & Associates will lead you through the entire

Identify a property-

buying process, answering your questions, providing

www.simmonsinc.com. Then electronically submit the Confidentiality

practice valuations, interpreting financial information,

You can review properties listed on

Agreement to the appropriate regional office. We can also send you this agreement by mail or fax.

handling negotiations and contracts, and introducing you to veterinary-friendly lenders. Financing the

Receive and review practice information-

Study each aspect

purchase of a veterinary practice has never been easier

about the practices that interest you, from location to financial performance,

than it is today. If you are well prepared and work with

and determine whether a specific practice will meet your needs.

the right lenders, veterinarians can often buy a practice with no money down. Our team can help you navigate the financial and ownership maze with unsurpassed expertise. We guide you through these steps when

Schedule an on-site visit-

Simmons will arrange for a personal visit

to a practice you are interested in purchasing. You can talk with the owner, drive around the neighborhood, and get a feel for whether this practice is right for you.

considering a practice listed with us: Contact a lender-

We can introduce you to lenders familiar with our

veterinary profession. Besides qualifying your credit, the loan application

Simmons Practice Watch for Buyers

Sign up to be immediately notified

process lets you get additional services from the lender, who can provide

when a practice becomes available in

an independent opinion of the practice’s price, calculate cash flow, and

your area. Visit simmonsinc.com to sign up.

determine if the practice price is workable for you, and conclude whether you’ll be able to satisfy the debt and expenses and still take home a satisfactory, comfortable paycheck. Basically, if the practice is not right for you, the lender will not lend the money. When using a lender recommended

by Simmons, you may be able to apply for the loan with no upfront costs.

Obtain financial records-

We will send you tax returns and financial

records from the practice for review and help you understand every aspect of how your personal net cash flow is determined and welcome any input from your accountant.

Make an offer-

Simmons can provide sample contracts and forms for

your attorney to review and customize. We can also recommend attorneys with experience in veterinary practice acquisitions.

Agree on the terms-

Once you and the seller agree on the practice

price and terms, you’ll sign a legally binding contract.

Accept financing

After you’re approved for a loan, the lender will send

you a commitment letter that outlines the loan’s interest rate, length, and number and amount of payments. Upon your acceptance of the commitment letter, the lender will process your loan.

Prepare for closing-

Simmons can provide guidance to help make

sure no detail is overlooked as you prepare for closing and make your transition into practice ownership.

Closing and transition- Now that you have the keys in hand, Simmons will help with suggestions and checklists to aid in a smooth transition.

What can we do for buyers?

Simmons & Associates provides practice valuation and market analysis, negotiations, sample sales contracts and letters of intent, expertise as the nation’s largest and most experienced brokerage firm, and relationships with leading lenders who understand the veterinary profession.

As a buyer, you can work with Simmons in the following ways: Option A: Buying a practice listed with Simmons

Option B: Buying a practice NOT listed with Simmons & Associates (buyer representation)

If you want to purchase a practice currently listed with Simmons, we can help.

We are under contract with and paid by the seller to sell the practice, and part

We can represent you and your best interests when buying a practice by

of that job is to assist the buyer through the entire process.

evaluating the transaction and discussing the “Affordability” of a particular

Buyer services when purchasing a practice listed through Simmons can include

practice to determine if it satisfies your specific needs. We will act as the

(at no cost to the buyer because we represent the seller) but are not limited to:

mediator between you and the seller. Representation includes but is not

• • An “Affordability” analysis with your needs in mind • Assisting you in obtaining financing from a

Providing practice information and a net cash-flow analysis

Simmons & Associates preferred lender

• Sample contracts for attorney review and modification • Attorney, CPA, insurance agents, and lender referrals • Aid in structuring the transaction (allocations, terms,

non-competes, etc.)

• An experienced “sounding-board” for your questions

and concerns

• Working with the closing agent to keep everything

• • Assistance with the new owner transition • Expert advice from negotiations to closing

Providing a closing checklist so details can be addressed

• • • • •

A practice valuation (Fair Market Analysis) Practice locator assistance to help you find the right practice for you An “Affordability” analysis specific to your needs Negotiations between you and the seller and/or his or her advisors

An experienced “sounding-board” for your questions

and concerns

•

Assisting you in obtaining financing through referrals to veterinary friendly lenders

moving forward

limited to:

• • •

Contract templates for attorney review and modification Attorney, CPA, insurance agents, and lender referrals

Aid in structuring the transaction (price, allocations, terms,

non-competes, etc.)

• •

Expert advice from negotiations to closing Working with the closing agent

“I purchased my first animal hospital through Simmons. It was an absolute pleasure to work with your office. I will recommend you to anyone and everyone and I look forward to doing business with you again in the future.”

Andrew Dooley, DVM

Evaluating the practice and seeing if it’s the right fit Understanding practice profiles Our comprehensive practice profiles give you an insider’s look at practices for sale. Whether you want to buy a practice across the country or in your hometown, we let you choose from nationwide listings of practices for sale. You can search practice profiles online at simmonsinc.com or request to receive profiles by mail.

Option C: Facilitation, when both the buyer and seller want assistance

Our practice profiles include details such as photographs of the facility and equipment, community overview, practice history, financial information, real estate description, and personal income scenario. Simmons can also guide

As a facilitator, we would assist both you and the owner through the steps of the practice sale with both sharing the cost. Facilitation typically involves associate veterinarians who are buying all or part of the practice from the current owner. The facilitator service includes but is not limited to:

•

A practice valuation (Fair Market Analysis) unless the price has already been set

you through the practice profile and explain each of the items in the report.

Once you identify practices that you’re interested in learning more about, a Simmons advisor can provide additional information and coordinate an on-site visit for a personal tour and meeting with the current owner. We’ll help you through the entire process, from what questions to ask the owner during your visit to negotiating the final sale price and transfer of ownership.

• • • •

Negotiating details between the buyer and seller

Is this practice right for you?

Contract templates for attorney review and modification

There’s more to buying a practice than just getting the best price.

Simmons wants to ensure a proper fit for both you and the current

Assistance in obtaining financing

patients and wants to smoothly hand it to a new owner. Ask yourself these Aid in structuring the transaction (price, allocations, terms,

non-competes, etc.)

• • •

questions when evaluating whether you should buy a specific practice:

owner, who has spent years building relationships with staff, clients, and

Attorney, CPA, and lender referrals Expert advice from negotiations to closing

•

What is the practice’s medical and management philosophy and does it match mine or can I tweak it?

Working with the closing agent

• •

Does the practice require solo or multi-doctor services?

Is the facility and equipment acceptable, or do I want a

“fixer upper” practice?

Option D: Practice Valuation

A practice valuation gives a Fair Market Value of the practice and includes

• •

Is this a community where I want to live long term?

when the owner has not yet set a price, if you want a second opinion on the

Is the cash flow sufficient after paying expenses and debt

to give me a satisfactory paycheck, or am I willing to grow

seller’s appraisal, or you want to validate a requested selling price set by

it to that income level?

a detailed report. This valuation can help the buyer determine the price

the owner. Our clients have commented on the detailed, clear, and precise explanation of our valuation methods. When representing yourself, this is a vital instrument that you can provide to the owner to support your offer.

•

Is this a typical general practice or does it have significant niche areas in special procedures, exotics, holistic medicine, boarding, or grooming?

Simmons advisors have provided me with the insight necessary to be successful in this competitive profession. Their dedication to our profession is unquestioned.”

Richard Swanson, DVM, past president, American Veterinary Medical Association

Understanding the negotiation process Having a trusted business advisor from Simmons helps to assure the transaction is a win-win outcome for the buyer and seller. We’ll act as a liaison between you and the seller, negotiating terms that are fair to both, so everyone leaves with a handshake and smile.

With the experience of closing hundreds of practice sales, Simmons & Associates takes you through the final steps of becoming an

will want an SBA guarantee on the real estate but will finance the practice

owner, including creating an “Affordability” analysis, negotiating a fair price

conventionally. Each type of loan has advantages and disadvantages you will

and terms between you and the seller, assisting you in obtaining financing

want to consider. The Simmons advisor will assist you in selecting the best

from veterinary friendly lenders, providing sample contracts for attorney

loan choice for your personal needs.

and accountant review and modification, referrals to other professionals such as attorneys and business insurance agents, structuring the transaction

Loan approvals are based on the buyer’s credit worthiness and work

including allocations and non-compete agreements, working with the closing

experience, and lenders consider the present and historic practice profitability

agent, and offering expert advice from negotiations to closing.

(net cash flow) and a real estate appraisal if real estate is included in the practice sale. Even if you’re a buyer with educational debt and have made timely payments, you can have good credit worthiness and easily qualify for a

What you need to know about lenders

substantial loan. Great financing opportunities await doctors with good credit histories and the right practice ready to purchase. Let Simmons recommend lenders who understand our profession and your needs as a buyer.

Easy financing options

How to make yourself attractive to lenders

Buying a veterinary practice has never been easier.

Simmons & Associates can refer you to lenders that

Commercial lenders are eager to form lending alliances

know and understand our profession. Because we

with our profession because we are considered a

work with leading lenders nationwide, Simmons is

low risk category. Commercial lenders can tailor loan

uniquely positioned to understand today’s lending

packages to meet your needs as a buyer, whether you

environment. Our strong reputation also has earned

want to finance 100% of the practice purchase or put

respect from lenders.

money down.

Navigating lender paperwork can sometimes bring back stressful memories

Buyers are well served by loan terms of variable length and interest rates.

Traditionally, there has been a practice loan for 7-10 years and a separate real estate loan for 15-25 years. A common alternative is to combine these two loans, typically for 15-18 years. This “blended” loan offers lower monthly payments but total interest costs can be higher.

Small Business Administration (SBA) loans often can be obtained with more lenient terms and lower interest than conventional loans. Conventional loans typically cost less to originate and require less paperwork. Most lenders

of final exams in veterinary school. Simmons can assist you in completing lender paperwork in a manner that will optimize your loan approval.

A good credit rating will get you closer to practice ownership. Although you can often finance 100% of the practice purchase, having some money down makes you even more attractive to lenders. You can contribute personal savings or get help from family members. Based on your financial status and the sale price of the practice, we can help you determine the best loan choices for your situation.

Very, very helpful! I could not have navigated the purchase of the practice without them!”

Karri & Judd McCreary, DVM’s