Are you planning to sell or purchase a veterinary practice? If
you're not sure what is required of you financially and legally
to buy or sell a practice, I suggest putting together an advisory
team featuring a lawyer, accountant and banker who can ensure your
purchase/sale goes smoothly. And here are a few tips and insights
to consider before you even start the process of buying or selling,
(based on my years of specializing in supporting veterinary
Before selling a veterinary practice, it's always a good
idea to give your accountant plenty of notice. I request a full two
years, as that gives me time to ensure that shares in the practice
qualify for the capital gains exemption. If this is worked out in
advance, finding a potential purchaser is cause for excitement, not
concern. Rather than risk being offside a required 24-month test
(for shares to qualify for exemption), you can ensure that
you're in the clear. Why risk deferring a perfectly good deal
when you can secure it with some relatively painless
Purchasing a practice can be a good opportunity for a young vet
who wants to be a business owner. In spite of various changes in
the market, these practices are still extremely profitable. While
there are some philosophical differences among younger, millennial
vets—they tend to be more hesitant about long-term
investments—this also presents exciting new opportunities.
For example, many veterinarians are now participating in staggered
sales, selling a 50 percent interest in their practice at one point
and the other 50 percent a couple years later. A complete sale may
seem easier, but staggered sales allow veterinarians to exercise
far more control over the transaction.
Whether you're buying or selling a veterinary practice,
there are many options available. Getting a great deal is always
possible, but only if you consider all the variables.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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Under the Income Tax Act, the Employment Insurance Act, and the Excise Tax Act, a director of a corporation is jointly and severally liable for a corporation's failure to deduct and remit source deductions or GST.
While most are well aware that the sale of a business is generally a complex process, even sophisticated business owners are surprised by just how much cost and effort is required to complete the sale.
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