Valuation techniques used in small animal veterinary clinics in Ontario, Canada
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The purpose of this report is to review the literature and summarize the common approaches to the valuation of small animal clinics in Ontario, Canada and then to apply each approach to an actual case study. The literature indicates that there are several reasons that an owner may seek a valuation for his veterinary practice; the most common reason is for a sale of the clinic to a new owner or a partial sale to a partner. There are four common valuation techniques used for valuing small animal clinics in Ontario, Canada: percentage of revenue; a multiple of earnings; valuation of assets; and, market comparisons. Using different valuation techniques provides guidance for value and will assist the veterinary professional with the sale negotiation process.