How Does Debt Impact Clinic Valuations?

Veterinary clinics are usually sold on a “debt-free” basis, meaning that when a clinic is sold, at a minimum any interest-bearing debt (such as bank loans, credit cards and capital leases) is deducted from the selling price. Example: A clinic is valued at $1,500,000 and has $300,000 of debt. The net proceeds to the seller…

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