Why would a veterinarian consider selling a veterinary practice?

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Table of Contents

• Some of the reasons why you might consider selling your practice
• How to estimate your practice’s worth (some elements to consider)
• Potential next steps if you’re considering selling
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Some people wonder why a veterinarian might want to sell their practice. We’ve heard a pretty wide range of reasons from DVMs. Here are some of the top reasons:
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Some of the reasons why you might consider selling your practice
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Some vets have said things like this:

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“I still want to care for animals, but I don’t want to have to deal with all the admin any more!”

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Many vets we speak with still really love practicing medicine, but dealing with accounting, recruiting, legal and other administrative functions isn’t always as exciting to them. Finding a buyer who can take on those responsibilities, while still allowing you to practice can be a great potential solution. Navigating through the complex landscape of potential buyers can be difficult though. To make this process easier, work with a great team who can help you find a great buyer, like us: VetVet.

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“I’m getting close to retirement age, and would love to set myself up financially to retire comfortably”

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You’ve been on a very long journey. Building your practice has been hard work and we know you likely want to enjoy the rest of your life. Working with a partner who can help take your emotional and financial wellbeing into consideration is key. Here at VetVet, we can be that partner.

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“I’d love to hand my practice off to someone who has the means to keep it going for years to come”

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You’ve built a practice you're proud of, but over time, running a practice can take its toll. Now what?

Creating a financial and emotional plan can help you transition gracefully into the next chapter of your life. When you start to think about creating a plan, speak with a company that specializes in helping practice owners find great buyers. That would be us, VetVet.

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“I’m dealing with a serious health issue”

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You’ve centered your life around caring for the health of pets and the emotional wellbeing of their owners. Now that you’ve fallen ill yourself, it’s taking a toll on a wide variety of areas of your life, from relationships with friends and family to your time at the practice. Many people in your position, start to think about selling their practices now, while they still have control. If you’re looking for a partner to help transition your practice to a new buyer, we can be that partner at VetVet.

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“I’m starting to feel like I might burn out owning a practice”

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We completely understand, running a practice is incredibly difficult and with time things can get harder and harder. If you feel like the smartest move is to sell, we are here to help at VetVet.

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“I know it’s time to sell my practice, but I’ve never sold a business before”

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Many practice owners only sell one practice over the course of their lives, so naturally it can seem like a very large task. Starting to prepare for this transition as early as possible can make the transition easier for you and the potential buyer. One thing you might want to keep in mind is whether or not the buyer wants you to stay onboard and help transition the practice. If they do, this could mean you might want to start coming up with a plan several years in advance of when you actually want to sell. We at VetVet, can help you make that transition smoother than doing it on your own.

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How to estimate your practice’s worth (some elements to consider):

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There are many elements that you should consider when thinking about your practice’s valuation. You’ll likely want to think about the below among other factors:

• The overall economic environment
• The state of the veterinary industry
• The area you’re in, including taking into consideration if the market for veterinary services is likely to grow over time
• The type of location that you’re in, for example urban, suburban or rural
• How easy it might be to recruit a new veterinarian onto your team
• The competitive landscape
• The physical assets you own, which could include your building, equipment, furniture and technology
• Your real estate
• Potential expansion opportunities (for example, unused exam rooms)
• Revenue
• Profit margin
• Net operating income
• Cash flow
• EBITDA - Earnings Before Interest, Taxes, Depreciation, Amortization
• Financial statements
• Tax returns
• The payment terms that would work with your lifestyle
• Your exit strategy and how it might align with the buyer’s
• The capitalization of the business
• Vendor agreements
• Lease agreements
• Partnership agreements
• Complimentary income that you might be receiving, like rental income

Once you’ve decided it’s time to sell, it’s important to work with a partner who can help you throughout the process. At VetVet we’d be happy to help.

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Potential next steps if you’re considering selling

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What are your thoughts on what you’ve read? Does this resonate with you or another veterinary professional that you know? If it does, connect with our team at VetVet at hello@vetvet.co or 510-969-2792.

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