APL Accountants has been providing appraisals to the veterinary profession since 2010. Our appraisals are undertaken by experienced specialist veterinary accountants. We understand your practice like no one else can.

Our practice valuations provide a comprehensive assessment of the worth of a veterinary business and its different components. There are a number of different valuation services, tailor made for different situations.

Trust in experience

Our valuation and appraisal system has been developed over many years by our experienced team of specialised veterinary accountants. The system is constantly being refined to reflect the changing nature of veterinary practices in Australia.

Comprehensive assessment

Our practice valuations provide a comprehensive assessment of the worth of a veterinary business. This allows parties to confidently enter discussions regarding:

• Purchase or sale of a practice
• Finance from banks
• Strategic planning
• Business insurances
• Accounting restructuring

What’s right for you

People need business valuations for different purposes. Recognising this, we offer different types of business valuations. Each of these offer a different level of detail and is appropriate for different practice situations.

Practice Valuation

This service provides a full valuation of the practice, but does not split plant and equipment value from goodwill value. This service is appropriate for practice sales, arms-length partnerships, accounting, insurance and strategic planning purposes. This involves:

• A comprehensive valuation report
• Your key business metrics (consultations, repeat consultations, average invoice value, etc.), compared to the industry average.
• Normalisation of business financials, which are then compared to the industry average.
• A 1 hour telephone/web meeting with one of our consultants to discuss the valuation results and to answer all your questions.

Practice Valuation Monitor

Watch the impact your management decisions have on the value of your practice. $1800 plus GST for 12 Practice Evaluation reports (1 per month for a year). Valuations are normally calculated on financial end of year figures. This means that valuations are often presented on figures that are 6 or 9 months old.

Our Monthly Appraisal takes the most recently available financial information from your accounting software automatically to ensure that it provides you with a more up-to-date appraisal of your practice than has ever been available before.

Please note that this is not a substitute for a formal business valuation for sale or purchase, it simply provides a rough estimate of goodwill, plant and equipment value to assist with decision making in the future.

Frequently Asked Questions

How does your practice valuation differ from simply applying a multiplier to our EBITDA?

Our practice valuations:

• are completed by two qualified valuers with current vet industry knowledge;
• use the capitalisation of future maintainable earnings method;
• calculate financial performance adjustments, which in addition to the usual, include a commercial wage for veterinarian and non veterinarian for hours worked by the owners;
• analyse three years of financial performance to calculate Future Maintainable Earnings;
• calculate a capitalisation rate which considers where the practice is located, whether it is adequately equipped, the client mix, number of full time vet equivalents, pricing of services and more;
• include a detailed valuation report which sets out the financial performance, key business metrics compared to the industry average, normalised financials compared to the industry average, veterinary practice equipment used by the practice, clinic fitout/refurbishment dates, premises lease and more.

Do both buyer and seller need to get separate valuations?

• It’s not uncommon for both the buyer and seller to get their own valuations. This needs to be done through different valuers.
• The buyer and seller can agree to a joint valuation. In this case, all parties are invited to the zoom meeting to discuss the report and this way both parties get the same answers for any questions that come up.

Do you do valuations throughout Australia and overseas?

We do valuations throughout Australia and New Zealand as well as in Hong Kong.

What is required for a valuation?

• Signed engagement letter and completed valuation checklist form.
• Financial statements as supplied by your accountant for the last 3 years for tax purposes. These should include any depreciation schedules for assets in the business.
• Debtors, creditors and stock at 30 June, if not included in the above financial statements.
• Payroll summary reports for the 3 years of financial reports supplied above.
• Once we have received all of the required information, we will issue you with an invoice.
• Payment in full of the valuation invoice is required to finalise the valuation.