Private Equity Offers for Veterinary Hospitals
Getting Unsolicited Offers for your Veterinary Hospital? Here's Some Unsolicited Advice
Are you a veterinarian who's received an unsolicited offer for your veterinary hospital? If so, it's important to tread lightly in the world of private equity-backed corporate buyers. While it may seem enticing, these offers often come with strings attached that could have you leaving millions of dollars on the table and locked into stringent post-sale contracts with lots of stipulations attached to them. At Wicklow Healthcare Advisory, we believe that informed decisions are the best decisions, and that's why we're here to provide you with some unsolicited advice on navigating this terrain.
The Intriguing World of Unsolicited Offers
Private equity-backed corporate buyers often employ sales teams to seek out privately owned veterinary hospitals—even those that are not officially on the market. Their objective? To acquire new businesses at the best terms and prices that benefit their company. In other words, they want to buy your hospital for the lowest possible price, with the best terms for them, while attaching the selling veterinarian and clinical staff to stringent post sale contracts. As a seller, your interests could not compete more.
The Sales Team's Game Plan
Corporate Buyers are experts at what they do with a team of people behind them with one goal in mind: Buy your hospital for the best terms that favor themselves. They come prepared with the goal of making an offer that’s too good to refuse. However, what may appear to be a generous cash offer can quickly turn into a deal that favors the acquiring company in the end. Post-sale contracts can dictate how long you work for the company, the structure of your payments (often with significant earn-outs or incentives), and other stipulations that might not align with your interests.
Leaving Money on the Table
Here's where it gets tricky. Many veterinarians who receive unsolicited offers may not fully realize the potential value of their veterinary hospital. Without the guidance of an advisor who understands the market, they risk accepting an offer that doesn't reflect the true market value of their hospital. In the end, they might leave millions of dollars on the table.
The Power of Competition
One key strategy to maximize the value of your veterinary hospital is to introduce competition into the equation. When potential buyers know they're not the only game in town, they're more likely to increase their offer to meet the market value. This is where having a trusted advisor in your corner can make a world of difference. Wicklow Healthcare Advisory is a champion for our clients and experts at creating a competitive market for your hospital.
Ensuring a Fair Transaction
As a potential seller of a veterinary hospital, your best bet is to have someone representing you who thoroughly understands current market conditions. They can help you review the offer being presented and assist you in determining whether it's the best fit for you, the veterinarian considering selling.
In the world of veterinary healthcare, the terms "veterinary hospital" hold great significance, distinguishing it from other healthcare practices. To make the most of your unsolicited offer, reach out to us at Wicklow Healthcare Advisory. We can help you navigate these complex offers, secure a fair market value, and ensure you're not leaving any opportunity unexplored.
So, if you find yourself pondering an unsolicited offer, remember this unsolicited advice: Consult a trusted advisor who knows the ins and outs of the veterinary hospital market. By doing so, you'll be better equipped to make informed decisions that safeguard your interests and secure the best deal possible. Don't settle for less when your financial health and the legacy of your hospital is at stake.
