praxisinc.com
The Step-by-Step Guide to Buying a Veterinary Practice
Determine Pricing
Your Praxis advisor will:
1. Value the equipment, furniture, supplies and the intangible value of your practice
2. Collect and analyze:
• The practice's last three years of tax returns
• The practice's last three years of revenue and expense statements
• Income by category reports
3. Determine:
• The value of procedures currently being referred out of the office
• Production by provider
• Whether any current provider will leave the practice after the sale
4. Analyze and innumerate the unadjusted profitability of the practice
5. Draft an adjusted cash flow and profitability statement to determine the true amount of
benefits and income derived from the practice
6. Examine all of the practice's contracts with associates, staff, and others
7. Establish the purchase price and a detailed explanation of that price
8. Explain the methodology and validity of the price to both parties
9. Research the latest tax legislation and the effect on the practice sale
10. Allocate the purchase price for maximum tax benefits for both parties
Determine a price that is fair,
understood, and approved
by all parties involved.
