praxisinc.com
The Step-by-Step Guide to Buying a Veterinary Practice
Determine Price
Your Praxis advisor will:
• Value the equipment, furniture,
supplies and the intangible value of
your practice
• 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
•
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
• Analyze and innumerate the
unadjusted profitability of the practice
• Draft an adjusted cash flow and
profitability statement to determine
the true amount of benefits and
income derived from the practice
• Examine all of the practice's contracts
with associates, staff, and others
• Establish the purchase price and a
detailed explanation of that price
• Explain the methodology and validity
of the price to both parties
• Research the latest tax legislation and
the effect on the practice sale
• Allocate the purchase price for
maximum tax benefits for both parties
Determine a price that is fair,
understood, and approved
by all parties involved.
