Welcome back to the second part of our discussion with Anne and Paolo Lencioni on valuations, mergers, and acquisitions in the vet industry. As previously mentioned both Anne and Paolo are highly skilled in both accounting and veterinary science and so today we jump straight into the different types of multiples (high vs. low) the difference between selling to a corporation as opposed to staff or a third party and ways to transfer value to the buyer but walk away with cash in your pocket.
- Looking back at part one
- What are the benefits of generalist accountants referring business clients to you for valuation?
- Discover the risk of accountants trying to do industry-specific valuation without knowing the industry
- The range in multiples for veterinary practices and factors that can impact that range
- Opportunities for a higher multiple with a corporate buyer option
- Planning an effective exit
- Knowing what corporate buyers are looking for when buying a business
- The level of aggregation where the vet industry sits
- Factors to consider when selling to a corporate buyer that might offset the advantage of the increased multiple
- Critical areas when prepping for sale
- Where to find great resources to refer back to
- Where the value of the vet industry lies and what considerations should be thought of in the lead up to exit
Today we jump back into our discussion on valuations, mergers, and acquisitions, and although our discussion focuses on the veterinary industry, there are tips and advice for anyone selling a business. Anne and Paolo Lencioni share with us some industry-specific issues that relate to valuations and business sales and share some of the common mistakes that can be made along the way.
In part one we discussed the effectiveness of a niche approach and the benefits of industry-specific professionals and today we look at the mistakes that can be made and opportunities missed by businesses, accountants and brokers who aren’t industry-specific. We look at selling to corporates versus selling to shareholders or a standard third party and we talk about earnouts and as well as preparing for sale.
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