Navigating Veterinary Practice Transactions: What Every Veterinarian Should Know

This topic was also featured on our podcast, where we dive deeper into the ins and outs of veterinary practice transactions. You can listen to the full episode here while on the go, or read on for the key takeaways and insights below.

For many veterinarians, buying or selling a practice is one of the most important financial and professional decisions they’ll ever make. Whether you’re preparing to retire, exploring a corporate offer, or weighing the possibility of selling to an associate, understanding the transaction process is critical to protecting your future.

Why Transactions Are Such a Big Deal

A veterinary practice transaction isn’t just another contract, it’s often the pinnacle of a veterinarian’s career. For a retiring doctor, the practice represents years of hard work, patient relationships, and financial investment. For a buyer, it’s a life-changing opportunity that can set the stage for long-term success. In either case, millions of dollars can be on the line.

Corporate Buyers vs. Associate Buyers

One of the most common scenarios veterinarians face is deciding between selling to a corporate consolidator or to one (or more) associate veterinarians. Each option comes with its own benefits and risks:

• Corporate Buyers: Often provide a strong initial purchase price but may tie the seller into long-term partnership agreements, restrictive covenants, or minority ownership stakes that last several years. While lucrative up front, veterinarians must weigh how these terms affect their autonomy and financial future.

• Associate Buyers: Selling to an associate (or group of associates) can keep the practice independent and protect the clinic’s culture. This option may involve selling a percentage of ownership (20%, 30%, or even up to 49%) while the original owner remains in control. Financial modeling helps sellers compare what they would gain over time versus a corporate deal.

The Importance of Clean Financials

Before listing a practice, sellers need to ensure their financials are in order. It’s common for private practice owners to have personal expenses tied into the business, but these must be “cleaned up” before buyers review the books. Transparent, accurate numbers build buyer confidence and set the stage for better offers.

Don’t Forget the Team

Veterinary practice transactions aren’t just about numbers — they’re also about people. Retaining associates and staff is crucial for maintaining continuity and protecting practice value. Sellers should negotiate associate bonuses or retention incentives early in the LOI (Letter of Intent) stage, rather than scrambling at the last minute. This ensures smoother transitions and happier teams.

Key Takeaways for Veterinarians

1. Plan Early – Clean up your financials before bringing in buyers.

2. Evaluate All Offers – Compare corporate LOIs against associate offers with both immediate and long-term financial models.

3. Protect Your Team – Negotiate associate incentives up front.

4. Seek Expert Guidance – A veterinary-specific attorney can help you navigate contracts, restrictive covenants, and deal structures to avoid costly mistakes.