The most important decision as a practice owner is to sell your practice, and we know it’s not an easy one. After all, you have spent years building goodwill, value, and trust in your local community. At Transitions Elite, we understand this and ensure that whenever a practice signs up with us, we provide all the information required and help them not only achieve the maximum value for their practice but also ensure they sell to the buyer of their choice. Our goal is not to sell your practice to the first interested buyer; rather, we market your practice to multiple veterinary practice buyers and create strong competition to get you the best deal, both in terms of value and buyers. 

Take it from one of our clients, Dr. David Graeff from Cedar Rapids, Iowa:

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

Watch Dr. Graeff’s full story here

Today we are going to cover this topic in detail, and this step-by-step guide will simplify the sales process and preparation for veterinary practice owners. 

Preparing Your Veterinary Practice for Buyers

Before searching for buyers, you need to ensure that your veterinary practice is positioned in the best possible way to attract serious buyers for your clinic . You need to position your clinic in a way that will have a significant impact on the sale.

Is Your Veterinary Practice ‘Ship-Shape’?

First impressions matter, especially when selling a veterinary practice. Potential buyers will carefully examine every aspect of your business, scrutinizing it in detail. No one wants to invest in a business without growth potential or one having significant issues. Considering this is often a multimillion-dollar deal, you can expect buyers to review every detail and frequently requested list of questions or proof of expenses. So, before you consider selling, ensure everything is in order.

Let’s start with some fundamental fixes to help make your practice more appealing to prospective buyers

• Exterior Maintenance: Curb appeal matters to both new clients and potential buyers. Paint, landscaping, parking lot—make it all shine. Next, turn your attention to the practice’s interior.
  
• Interior Updates: Updates to the interior of your practice should be focused on modernization and functionality. This may include renovation of waiting areas, exam rooms, and treatment spaces.

• Equipment Assessment: Audit your inventory of medical instruments and technology. One does not need to have all new equipment at the time of sale, but whatever is available must be operational and of reasonable age, and staff need to be familiar with its usage.

• Operational Efficiency: Standardize your procedures and tasks within your practice. A well-managed practice is important because of the ease of integration and management after acquisition.

• Staff Management: Staff with requisite skills and with low turnover are an important asset. Assess whether staff is adequately trained, sufficiently motivated, and willing to contribute to the overall success of the practice through the sales process and potentially staying post-sale.

• Financial Health: Documents related to profit and loss, tax declarations, and details on periodic incurred losses and income must be arranged and kept in order. 

Know Different Kind of Buyers

Well, to find the right buyer for your practice, you need to ensure you know your options and tailor your approach and sales pitch depending on the type of buyers you are meeting with or who are interested in your practice. To make things simple, here are the different types of buyers:

Individual Buyers

Individual prospects might be:

• Newly qualified graduates wanting to buy a practice
• Veterinarians who have been practicing for some time and want to stop being an employee and become an owner
• Veterinarians currently in practice who want to add to their practice

Corporate Buyers

These are typically larger organizations, usually part of veterinary practices management and investment companies, and are usually interested in the following:

• Increasing the number of practices in their portfolio
• Increasing the number of types of practices within the veterinary industry
• Translating set management practices across various sites

Adapt your presentation to appeal to each type of buyer:

• For clients with less capital like an individual practitioner aiming for their first practice, highlight the wider client development potential of the practice and benefits of social integration.
• A veterinary corporate buyer provides information on financial indicators of the company, operational effectiveness ratios, and any developmental plans concerning the acquisition or introduction of new products or services.

Selling a practice isn’t just about any buyer, it’s about finding the right one. Someone who actually gets what you’ve built and is ready to keep that legacy alive.

Dr. Missy Tasky (Source – Inspire Vet) 

If you are confused about who the right buyer is for your practice, let’s book a free clarity call with our senior financial advisor, Tom. He will provide a detailed overview of your practice’s strengths and help you understand who the right buyer is and how to ensure you get maximum value for your clinic. Simply fill in the form below to get started. (This offer is limited to the first three practices that fill out this form.)

Key Data Points for Prospective Buyers

If you are ready to present comprehensive reports regarding your practice to prospective veterinary practice buyers, this section should assist you in preparing for a smooth process. Having this information available will build confidence for any type buyer.

The essential data should include the following:

Prepare Your Practice Financial Documents:

• (P&L) Profit and Loss Statements (3-5 Years)
• Balance Sheet
• Cash Flow Report
• Tax returns & documentation
• Accounts payable and receivable

2. Operational Report:

• Total number of clients currently utilizing services
• Acquisition rate
• Average client value
• Efficiency in appointment booking
• Staff report (including turnover rate)

3. Client Breakdown:

• Age profiling 
• Pet types being served
• Geographic client area

4. Service Catalog:

• Service & product menu
• Revenue by type
• The unique services and/or products that set you apart in the market

5. Equipment and Inventory:

• Comprehensive list of all medical equipment, including individual age and condition
• Current inventory status and practices

6. Personnel

• The org chart
• Staff experience and tenure
• Overview of Salary and Benefits

7. Lease or Property Information:

• When leasing, the scope of the current lease, as well as renewal options available
• When owned, property value and equity

8. Marketing and Community Engagement:

• A high-level view of marketing strategies
• Community initiatives 

9. Growth Opportunities

• Possible areas for future expansion and/or service additions
• Analysis of the local market

You may want to consider hiring a professional assessor who specializes in veterinary practice valuations. A proper business evaluation can also identify parts of the practice that require changes prior to going to market.

We know this might sound like a “cumbersome” process, but let us assure you that, since we have helped multiple practice owners over the past several years, we will take care of everything mentioned in this section. Our skilled team of advisors will ensure the process is easy for you. How about we start with a free valuation of your practice, so you can compare it with your existing options, and we’ll take it from there?

Marketing The Practice and Contacting Prospective Buyers

Your practice has been set up for sale and all the needed documents have been gathered, you are now ready to commence the promotion of the practice to the market.

1. Strategic Marketing

For the best results, use a diverse marketing strategy. Some examples include:

• Industry Websites: Target websites that deal in the sale of veterinary practices. You can simply google “selling my vet practice” and “ how to sell a veterinary practice” and review the top websites listed for these searches and contact them 

Example, 

• Professional Networks: Inform your practice colleagues in a discreet manner that you plan on selling the practice. Word-of-mouth marketing is one of the best ways to attract prospects.

• Social Media: In addition to your normal social media strategy, add posts to groups you belong to on LinkedIn, Facebook, Reddit, or Quora.

Example

• Direct Outreach: If you don’t mind selling your practice to a corporate buyer, it might be useful to research the best ones for your practice and contact their purchase teams.

• Local Marketing: It might be worthwhile to consider local marketing, particularly in larger urban areas.

Focus on the key characteristics of your practice that will appeal to  potential veterinary practice buyers:

• Positive net income and revenue trends
• Stable client base with a high degree of retention
• Preferred geographic and expansion area
• Unique services and/or products
• High public image and good community relations
• Good systems and staff

Bear in mind to customize the content of the message according to the potential buyer. A practice buyer will consider the cultural and community aspects of the practice much more than the practice, while the corporate buyer will look much more to the performance and the scalability of the practice.

If you’ve read our blog post on ‘How to Find the Best Veterinary Practice Brokers,’ you’ll know we’ve highlighted Dr. Graeff experience 

In his words, ‘If you’re a practice owner thinking about selling your veterinary practice and believe you can do it on your own, you won’t get the best dollar. The objective of the companies buying your practice is to purchase at the lowest possible price, and they often earn a commission based on this lower sale price. But Tom, our senior Transitions Manager, marketed his practice to multiple companies, creating competition among them. He was confident that he got the best price and a buyer who genuinely cared for his legacy and team.

Leave everything to us. At Transitions Elite, we’ve developed a clear, step-by-step process that ensures, once you sign up with us, we handle everything to maximize the value of your practice and selling to the top buyers.

                                                 

Involve the Veterinary Practice Broker 

A broker’s expertise can expedite selling your practice with the following skills and services:

• Broad Networks: Brokers typically maintain a network of potential buyers, both individuals and corporations. They can use this network to quickly acquire interested and qualified buyers.

• Valuation Skills: Most veterinary brokers are usually in a position to offer or source a qualified assessor. This will enable you to set a reasonable and competitive price for the practice.

• Promotional Know-how: Competent brokers know how to approach the marketing of veterinary practices in the selling process.

• Negotiations: Brokers can help with acquisition negotiations; they can serve as middlemen and ensure that professionalism and objectivity are preserved.

• Control of Information: Selling a practice requires a lot of discretion, something that brokers manage very effectively as your representative.

• Assistance in Selling Process: In making inquiries about the closure of the sale, brokers can assist you in every single step along the way.

When choosing a broker, inquire about the history of the broker, their marketing style, and typical clientele. Brokers are paid a fee (usually calculated as a % of the selling price), but in most cases, their professional knowledge guarantees a price that is often higher than you could get on your own.

Here’s Why Transitions Elite is Your Partner for Success

The Multi-DVM Practice Sales Specialists

$2M+ Revenue? 3+ Doctors?
We’re Your Team.

Our proven Elite Selling Process™ is designed to get you the HIGHEST PRICE & BEST TERMS… GUARANTEED. Here’s how we help:

• Prepare your practice for a seamless sale
• Connect you with the ideal buyers for your unique needs
• Manage the entire sale, negotiation, and due diligence process
• Accelerate the sale of your practice to avoid delays
• Deliver the best possible outcome for you, the Practice Owner
• Earn you the best deal and highest possible return

Ready to start? Let’s talk!

Balancing Confidentiality and Transparency

A balance must be struck when selling your veterinary practice between being transparent about the business without revealing too much that would damage your negotiating position or financial security. Some ways to navigate this issue:

• Nondisclosure: Distribute NDA’s to would-be buyers and investors and only release key information after the signing.

• Gradual Information Supplying: Start supplying the buyers with information but deliver it in stages. Disclose information progressively based on the buyers’ interest and their signing of NDAs.

• Due Diligence: You need to be ready to talk about operational areas as well as financial details of the business when called upon by a legitimate buyer. 

• Above Board: Presenting your practice in the best light is a priority, but you also want to be truthful about anything not as positive. Dishonesty or errors of omission can and will lead to either deal breakdown or legal issues later.

• Embrace Opportunities: If the practice has undergone some form of struggle or has room for improvement, do not wait to explain it. Mention the plans you have to remedy the situation.
  
• Staff and Client Management: Plan for the eventual announcement to clients and staff of your intent to sell. The timing of this announcement is very important for a smooth transition.

• Legal Counsel: Finding a lawyer with veterinary practice sales experience is a serious consideration to ensure your interests are always protected.

Key Takeaways

• Proper preparation is essential for engaging with the best-qualified buyers.
  
• Identifying your prospect type (corporate and individual) is crucial so that you are communicating with each effectively.
  
• Professional guidance (brokers, legal counsel) can streamline the entire process, and protect your interests at every step.

Next Steps

Get a Free Valuation – Claim a Free valuation of your practice by simply filling up the below form.  

Evaluate Your Practice: Objectively assess your practice—a professional valuation is best. Use the valuation for areas of improvement and to understand the market.

Financial Data: Work with your bookkeeper and accountant to gather your financial documents.