Finding the Right Fit: Your Guide to Buying or Selling a Veterinary Practice

The bond between people and their pets is at the heart of everything a veterinary practice does. Whether you are a veterinarian looking to acquire your first practice or a seasoned owner ready to transition toward retirement, the decision to buy or sell is a major professional milestone.

At Franklin & Frankel, we specialize in helping veterinary and healthcare professionals navigate these transitions. We understand the unique challenges of the market in Connecticut and Massachusetts and are here to ensure your journey is smooth and successful.

For the Buyer: Planning Your Acquisition

Starting your journey as a practice owner is an exciting step, and the opportunity to purchase may be more attainable than you think. To position yourself for success, consider the following:

• Evaluate the Patient Base: Beyond the physical building, look at the size and demographics of the community. A loyal following is a sign of a stable, sustainable practice.
• Review Financial Vitality: Thoroughly examine financial statements, including profit and loss reports and tax returns, to ensure the business is on solid footing.
• Understand Financing Options: Many lenders are eager to support veterinary professionals and may provide loans for the full purchase price if the practice has strong financials.
• Assess Technology and Staff: Up-to-date equipment can save on future investments, and an experienced staff helps maintain continuity for patients during the transition.

For the Seller: Protecting Your Legacy

Selling your practice is a significant transition that impacts your finances and the reputation you have built. Strategic preparation is key to a profitable and smooth exit:

• Choose the Right Successor: Consider whether an associate, an independent veterinarian, or a larger organization is the best fit to maintain the culture of your practice.
• Organize Your Financials: Maintain transparent, monthly financial statements. This clarity helps potential buyers understand the practice’s performance and can boost your valuation.
• Define Your Post-Sale Role: Determine if you prefer a clean break or if you are willing to stay on as a consultant for a period to assist with the transition.
• Address Compliance Proactively: Ensure all licenses are current and any legal issues are resolved before putting the practice on the market to avoid delays.

Professional Guidance for Your Transition

A veterinary practice transaction is more than a purchase price. It’s a structured transfer of goodwill, patient records, equipment and inventory, real estate (or a lease), staff relationships, and regulatory compliance. The legal structure of the deal, asset vs. equity purchase, key contract assignments, and post-closing obligations, often determines the true risk and the after-tax outcome for both sides.

Buying or selling a veterinary practice involves complex negotiations and specific legal requirements. Having an experienced legal team allows you to focus on your patients while we handle the technical details of the transaction. Most transactions follow a predictable path: a letter of intent, due diligence, a definitive purchase agreement, lender and landlord approvals, closing, and a post-sale transition. Our role is to manage the process end-to-end, negotiating terms, coordinating with your advisor team, and keeping the deal on track while you stay focused on patients. We find that deals tend to be most smooth when we have a chance to get involved early, helping clients avoid common pitfalls at the outset rather than trying to fix problems further down the road. 

Our firm has advised many professionals throughout Connecticut and Massachusetts as they grow or transition their businesses. If you are ready to take the next step in your career, we would be happy to discuss how we can help. Contact us today!