Veterinary practice owners often believe they can only sell their practice when they are ready to retire. However, selling your practice and retiring at the same time can create challenges in the sales process. Most buyers, especially corporate or private equity groups, prefer a three-year transition period where the seller stays on to maintain continuity in the business.
Buyers want to ensure that the business continues to operate smoothly and profitably after the acquisition. They are purchasing not only the practice itself but also its ongoing performance. If a seller exits too soon, it could disrupt the stability of the practice, negatively impacting revenue, staff morale, and overall operations.
Why Staying Post-Sale Matters
Corporate buyers are particularly cautious about purchasing a practice where the primary veterinarian or owner leaves immediately after the sale. If you’re producing a significant portion of the clinic’s revenue, your departure could pose a major risk to the business. Replacing veterinarians in the current job market is extremely difficult, and most buyers want to avoid the financial hit that comes with losing key personnel.
For smaller practices (with one or two veterinarians), this issue is even more pronounced. If you plan to retire shortly after selling, you might face a more challenging sale process, as the practice’s success is likely tied closely to your continued involvement. Larger practices, with five or more veterinarians, might be more flexible, as the absence of one vet has a less significant impact.
How to Plan Ahead
To get the most value from selling your veterinary practice, you should start planning at least three years before your desired retirement date. This includes getting your financials in order, ensuring your practice operates with healthy margins, and balancing your production among associates. Proper preparation not only makes your practice more attractive to buyers but also ensures a smooth transition period.
Selling your veterinary practice doesn’t mean you have to walk away immediately. It’s about setting yourself up for a successful sale while securing a future where the practice thrives and you meet your retirement goals.
If you’re considering selling your practice or have any questions, reach out to us for guidance and assistance in navigating this important process. We’re here to help ensure your sale is smooth, and your post-sale experience is as fulfilling as possible.