Decoding Vet Real Estate Terms:
Business Valuation, Evaluation, and Appraisal

Even though these three terms sound similar and look like they can be used interchangeably, they are quite different when it comes to determining the value of a veterinary practice. If you’re in the market to buy or sell veterinary real estate, we’re here to help you determine the type of assessment that is required.

The Legal Difference: Valuation and Appraisal

Appraisal legally refers to the physical property of the practice — the building and any additional adjacent real estate. In contrast, valuation refers to all non-real estate assets, such as inventory, laboratory equipment, the client database, and more.

For example, if you’re looking to purchase a veterinary practice in a leased facility, only a business valuation is necessary — the facility is under the landlord’s ownership. 

Similar to what occurs in the normal housing market, it’s not uncommon for sellers to be unpleasantly surprised when they find out that their veterinary practice is worth less than they thought. To avoid this situation, we strongly recommend vet practice owners arrange valuations on a regular basis. Routine valuations can pinpoint the necessary changes for business growth and can raise the value of practice until the time comes to put it on the market.

Where Does Evaluation Fit In?

Different sources explain evaluation in different ways, but in the most general sense, evaluation is an informal assessment. While valuation considers a formal report with reliable information and fact-checked results, an evaluation is a once-over estimate and not a definite report.

But relying just on an estimate is never our advice since it doesn’t give the full picture and can miss the mark. That is why we strongly advise you to book an in-depth valuation with our team of professionals. We will save you time, money, and offer a personal touch that you and your practice deserve.

How to Choose a Professional Valuator

There are two things that you should look for in a valuator: experience and qualifications. While qualifications are naturally important, it is the real-life experience that makes a difference. Since PS Broker focuses on vet real estate, leading the field of Veterinary Practice Acquisitions and Valuations for over two decades, we’re uniquely in tune with your needs and market prospects.

Appraisal and Valuation with PS Broker

Are you preparing to sell your vet business, or are interested in buying your very first practice? PS Broker provides valuations with our Certified Valuation Analyst (CVA), a designation offered by The National Association of Certified Valuators and Analysts (NACVA). Our analyst, who specializes in veterinary practices, will provide you with an in-depth telephone conference, written summary, and financial spreadsheet and from there you will be able to plan your next steps in the right direction.

PS Broker believes that behind every successful seller-broker relationship is a fundamental level of trust. That trust combined with our resources, experience, and skill will ensure a smooth transition as you look forward to the next stage of your career. Contact us today!