When to Sell My Vet Practice: Timing Strategies That Work

Working on your own time, helping patients, doing things your way, the list of benefits of being a veterinary owner goes on and on. However, no matter how successful a practice may be, there comes a time when practice owners conclude that selling it is the best decision for their future.

It is important to know when the time to sell a practice is right, and how to make the best out of it. After all, it is a choice that can dramatically affect your life and legacy. So, in this post, we’ll explore the strategies that help practice owners pinpoint the perfect moment to transition, making sure you sell at the right time, for the right reasons and at the right price.

Why Timing Matters When Selling a Veterinary Practice

A veterinary practice is, on a fundamental level, a business. A business must take into consideration when going through a major shift. Something as important as selling it or transferring ownership, time at that point is not just a detail one ought to note, but arguably one of the most powerful levers you can pull to maximize both the financial return and the personal freedom you gain from the sale.

The market goes through hot and cold phases. Selling when the market is hot could land you a life-changing deal, but waiting too long can result in the market going cold, resulting in you leaving hundreds of thousands, or even millions, potentially on the table.

Market Timing Isn’t Everything Though

While selling at the right market time is important, the timing of the market alone is not what you should consider; timing is also about you. If, as a practice owner, you have reached the point where you no longer wish to bear the stress of ownership or just want to start the next phase of your life ASAP, you can still sell your practice while it is thriving rather than waiting around, putting yourself in a position of power when negotiating.

The sweet spot is when your practice is financially healthy, buyers are eager, and you are personally ready for the next chapter, whether that is retirement, more family time, or simply practicing medicine without the headaches of ownership.

In short, getting the timing while selling a veterinary practice right makes sure you are setting yourself up for the future you really want.

7 Signs It Might Be Time to Sell

It is almost never an easy decision to sell your veterinary practice. The practice becomes a lifestyle, a hobby, a legacy. It is the result of a lifetime worth of hard work, dedication, and care for the community. However, there comes a time when holding on may not be in your best interest, financially or personally.

If you’re looking for a sign, here are 7 of those that it might be time to sell:

1. You’re Feeling Burned Out: Most vets are prepared for the responsibilities of being a vet, not a business owner. Yet, that is something they must be as the owner of a practice. Long hours, staffing struggles, administrative work, and all the other constant pressures that come with ownership tend to take their toll. If you’re finding that the stress outweighs the joy of running your practice, it may be time to step back.
2. Recruiting and Retaining Staff Is a Battle: Hiring is a challenge, now more than ever before, due to a nationwide DVM shortage. If your practice is struggling to maintain staff and you or another doctor is managing too much workload alone, buyers consider that a red flag. At that point, the wiser decision is to quickly fix this staffing issue and/or sell while your team is still relatively strong.
3. The Market Is Hot: Needless to say, when the market is hot, private equity and consolidators are paying premium valuations for practices that are doing well, and the market is indeed hot right now. Selling in a strong market could mean millions more in your pocket, and that isn’t an exaggeration, depending on the size and success of your practice, of course.
4. Your Practice Is Thriving Financially: The best time to sell is when your practice is doing well, not when revenue is dwindling. Buyers pay top dollar for a practice that is stable, profitable, and has an upward graph for growth.
5. You Want More Time for Life Outside the Clinic: Being a business owner grants you freedom, but it doesn’t always mean you have time. It is quite an involved process, much more involved than being a 9-5 employee. Selling also means gaining back your time, whether that means spending more time with your family, traveling, or enjoying practicing medicine without the stress of ownership.
6. You’re Nearing Retirement (Or Want to Retire Early): If you’re planning to retire early, or can see it on the horizon, selling your practice will provide you with the financial security you need to live out your days in peace. You can also, as per the agreed-upon terms, decide to keep the option of staying involved part-time on the table.
7. You’re Ready for the Next Chapter: It isn’t always about retiring, money, or burnout. Sometimes you just want to move on and experience change. Whatever the next chapter may be for you, whether starting another business, chasing a dream, or focusing on personal well-being, selling your practice can be the financial aid you need to embark on your next adventure without worry.

You don’t have to wait until you’re exhausted or your practice starts to decline. The smartest time to sell is often when things are going well, buyers are motivated, and you’re personally ready to leap.

In addition, be sure to avoid these mistakes when selling a veterinary practice.

What Happens If You Wait Too Long?

As discussed above, time matters a lot. Waiting around may appear to be a cautious choice, but it carries with it several risks that can reduce your payout and impact your sale terms, and by extension, your peace of mind.

1. Burnout Creeps In

When ownership starts to take its toll and the joy of running your practice fades, burnout occurs. This may result in you putting in fewer hours and having less energy, and the result tends to be a decline in performance. Buyers see the difference, and the value of your practice drops accordingly.

2. Market Cycles Don’t Wait

We do not advocate selling just because the market is hot, but as expert advisors, one simply cannot ignore the broader market conditions when selling.

Right now, as of the writing of this, private equity buyers are paying premiums, but that window can close soon. Rising interest rates, socio-economic factors, and downturns can all result in buyers’ offers decreasing.

3. Staffing Gets Harder

If you wait too long, your practice can potentially become short on staff and too dependent on you, which is a liability. Practices with strong teams get better multiples because they are more stable.

4. Life Can Force Your Hand

Life is unpredictable, something everybody, not just medical professionals, realizes soon enough. Health issues can arrive unexpectedly, and then there are always family and personal obligations. All of a sudden, you are in a position where you have lost leverage and are selling on someone else’s terms. Ideally, you want the terms to favor you.

The best exits happen when you are in control. Selling while your practice is thriving, while buyers are motivated, and while you are personally ready ensures you maximize value and step into your next chapter on your own terms.

Get Expert Help to Sell at the Right Time with Transitions Elite

Transitions Elite specializes in helping veterinary practice owners sell their practice at the prices they’ve earned with years of dedication. We’ve guided, so far, hundreds of veterinarians through the process and created a competitive bidding environment so that they could get the highest value on their terms. A deal structure that allows them to comfortably step into the next chapter of their life.

And we can do the same for you. With our team rallying behind you with expert guidance, strategies tried and tested, and access to premium buyers from the start, you can secure the future you’ve worked so hard for. Get a free evaluation of your practice today.

Closing Thoughts

Your hundreds and thousands of hours poured into building your veterinary practice must bear the fruits of your labor. Personal value is important, but you must make your practice appeal to the buyer on objective grounds.

Look for areas of improvement, find the right time, and start preparing early, perhaps partnering with an expert to guide you through the process and help make the sale.

Remember, selling your veterinary practice is a transition into the next chapter of your life, so make it count, as the right deal can secure both your financial future and your personal freedom.

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