Becoming a vet is as demanding as becoming a doctor. Even after you graduate from veterinary school, establishing a practice and building a client base may be challenging. Buying an existing veterinary clinic can provide you with a ready-made practice if you do it right.
Suggestions
Work out the financing. If buying the practice means taking out a loan, talk to your bank and find out the terms and amount they'll support so you know the price range you have to work with.
Ask the vet exactly what he's offering to sell you. If the practice includes both farm animals and pets, the vet may want to retain one side of that, or he might sell you the practice but hang on to the actual clinic site.
Establish the value of the physical assets: the building, the equipment and supplies, any business vehicles, cash on hand and any accounts receivable.
Figure out how much the goodwill--the reputation of the clinic--and the annual cash flow are worth. If the practice is new and growing, the owner may want to set a value on that, too.
Ask the seller about her future plans. If she intends to set up another clinic or work for an established practice, that would sharply reduce the value of your purchase. Consider asking for a noncompete agreement.
Bring in professionals. Buying both the clinic building and the business assets will have an effect on your taxes, so make sure you figure out how to structure the deal for the best possible advantage.
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