If you are at the stage where you are looking for more information around the value of your veterinary practice. We understand you have started to think about the future or actively planning for sale of your veterinary practice. At this point it is very important as practice owners to understand the key factors that impact the value of your practice. At Transitions Elite, our goal is to help practice owners like you in getting the maximum value of your practice and ensuring you are able to sell the practice to the buyer of your choice on your terms. We understand that you have spent years in building the practice and goodwill, and thinking about selling or retiring is the biggest decision of your life, and there are many factors that you are not aware of that can impact the value of your practice directly or indirectly.

Today, we are going to discuss the eight factors that impact the value of your veterinary practice and will also help you understand how different practice owners made small changes that helped them scale their revenue and sell at the best possible price.

1. Financial Performance

The key indicator in any growing business is financial performance, and this is just as true when it comes to selling your practice. Buyers actively look for practices with a solid track record of growing revenue over the last few years. This is because it reflects how stable your clinic’s revenue is and how trusted you are within the local community, as shown by your ability to drive consistent revenue.

In our conversation with senior financial manager Tom, he highlighted that as a practice owner, it’s very important to understand that while the first conversation about revenue will catch the interest of prospective buyers, once they’re interested, they’ll request detailed financial information. They’ll want to understand income, expenses, and salaries paid. This makes it critical to have accurate and up-to-date records. Before you take the next step, we recommend working with your accountant to ensure your records reflect the true financial health of your practice.

2. Client Base and Retention

Client base and retention are key drivers of financial performance for your clinic, and for buyers, they are strong indicators that pet owners trust your practice. This, along with steady growth of new clients, ensures that clients keep coming to your clinic, which has a great impact on revenues.

As a practice owner, you also need to identify areas where improvement is needed to ensure clients have a great experience at your clinic. Of course, care and treatment are the number one factors, but alongside that, you also need to make sure pet owners find it easy to book appointments and have an overall positive experience at your clinic. How can you do that?

A simple idea is to check your Google reviews to identify problems faced by your clients and turn those problems into opportunities for improvement. For example, if they’re complaining about manual booking processes, consider implementing an automated booking system. If long wait times are a common issue, think about adding tele consultations as an option.

All of these changes will not only ensure that pet owners keep coming back to your clinic but also increase your revenue and the overall value of your practice.

3. Location

Like in any real estate or similar deals, location is one of the main factors in determining value. The same holds true for veterinary practices—it’s more than just dots on a map; it’s a critical value driver. Imagine a clinic in New York City, where the traffic and pet-to-owner ratio is higher, compared to a rural location. Factors like demographics, competition, and accessibility can significantly influence your practice’s worth.

In one of our webinars, a practice owner asked how rural practices can ensure good value for their practice if location is such a significant factor. We highlighted one key strategy: integrating tele consultation services. While major cities often have easy access to experts, they sometimes face challenges in getting immediate advice from specialists. With tele consultation, a clinic in a rural area can cater to patients from across the globe, including major metropolitan locations. The impact? A higher value compared to similar clinics in your area.

If you want to understand the true value of your practice, we recommend booking a free consultation with our expert today!

4. Services Offered

In simple terms, pet owners prefer clinics that offer more than just basic pet care. They want veterinary clinics that can handle all their pet’s needs, whether it’s dental care, advanced diagnostic tests to identify problems, surgery, or even day boarding.

Working together with your team can help you identify the best opportunities to invest in. For example, your practice manager might highlight that telemedicine is a priority because you receive a lot of visits, and there’s limited space for pet owners to wait their turn. These suggestions can be turned into actionable opportunities to grow and increase the value of your practice.

5. Staff and Team Stability

We’ve observed that many practices with great revenue but a high turnover rate of DVMs tend to have lower valuations. Buyers know that each DVM is a pillar of revenue, so they want to ensure that the clinic they’re purchasing has a stable and qualified staff. As a practice owner, you need to ensure your staff is happy, invest in their training, and address their concerns with the goal of creating a positive working environment for everyone. It’s also critical to ensure your team is committed to staying post-sale.

6. Facility and Equipment

The facility and equipment at your clinic play a significant role in its valuation. Pet owners naturally prefer clinics with well-maintained facilities and up-to-date equipment. To identify areas for improvement, start by gathering first hand insights. You can visit other clinics in your area to see how their facilities differ from yours. Additionally, set up a feedback box in your clinic or review your Google feedback to understand pet owners’ opinions about your facilities. Use this feedback as an opportunity to improve, innovate, and grow your clinic.

7. Practice Reputation

Pet owners prefer clinics with a great reputation and strong goodwill—and so do buyers. Buyers are looking to  invest in a clinic trusted by pet owners and seen as their go-to choice. 

Here are a few tips to maintain and grow your reputation:

• Monitor and respond to online reviews regularly.
• Foster strong relationships with your clients and the local community to keep your reputation stellar.
• Identify problems raised by clients and turn them into solutions to improve your clinic.

By focusing on these areas, you’ll not only improve your clinic’s goodwill but also its overall value in the marketplace.

8. Growth Potential

Buyers are not just investing based on the financial performance of your clinic in past years; they also want to analyze its growth potential. For instance, there might be extra space in your clinic that a buyer could transform into a boarding center. Or perhaps, with advancements like telemedicine, buyers see that your staff is tech-savvy and capable of introducing more services like these.

Key factors like client retention and steady growth are positive signs for buyers. They view these as opportunities to extend clinic hours, increase client volume, and further expand the practice’s potential.

How These Factors Work Together

All of these factors play a key role in determining the value of your practice. From a strong client base to a great reputation and solid financial performance, these are key drivers for practice buyers. They showcase how valuable your clinic is compared to similar practices in your area. Taking the right steps to improve areas where you can will not only help you prepare your practice for sale but also set it up as a future-ready clinic—one that is healthier, more profitable, and impactful.

Ready to take the next steps? At Transitions Elite, we’ve helped multiple practice owners across the United States and Canada sell their practices at the best value to top-notch buyers. Here’s a quick video to learn more about us.

 What We Offer:

• Free practice valuations
• Personalized growth strategies
• Guidance through every step of the sale

Here are few of the stories from Vet practice owners 

I had previously looked at selling the practice on my own, and I had talked to five different companies about this and had gone through the process individually, and none of it turned out to my satisfaction. After I signed up with Tom, he marketed me to these interested companies. There was competition amongst those interested. It was so relieving at the end of it to know that I got the very best deal possible!

 David Graeff, Cedar Rapids, Iowa

I knew that I would get the best value for my practice if I had a professional helping me. And it definitely turned out to be true that having Tom in my corner. 

I have zero doubt that I would not have gotten the value for my practice if I didn’t have him on my side as well as the ease of it. It was such an easy transition and he made the entire process very simple. 

Sharon Gorman – Las Vegas, Nevada

Transitions Elite holds your hand and guides you through the whole process. Even though it’s a stressful time and situation, they make selling so easy.

Dr. Lonnie & Naomi Davis – Ohio

Let’s start with a free valuation. It’s your first step toward a brighter, more secure future. Just fill-up the below form and get started!