Gallery M Squared Business How to Make Veterinary Practice Transitions Smooth

How to Make Veterinary Practice Transitions Smooth

As a veterinary practice transitions your practice is one of the most challenging things you will do in your career. After years of blood, sweat and tears you may be ready for a change. Selling your practice can be a rewarding and lucrative endeavor, but it takes careful planning and expert advice to make the process smooth for everyone involved.

One of the biggest concerns for buyers is attrition. Losing clients and staff to retirement or another opportunity can eat into the financial gain of a sale. This can be mitigated by clearly defining the expectations of both parties in the sales agreement.

Beyond the Clinic Doors: Understanding the Ins and Outs of Veterinary Practice Sales

Another issue to consider is the impact of a sale on your tax liability. Depending on how the transaction is structured, you could be subject to capital gains and income taxes. Taking a holistic approach to valuation that utilizes several approaches, including the use of an experienced veterinary business broker, can help you avoid unexpected tax liabilities at sale time.

Lastly, be sure to review your lease provisions carefully with an attorney. Your lease may contain personal guarantees that hold you responsible for ongoing rental payments even after the practice is sold. Having an attorney look at the entire agreement will ensure you are not left holding the bag after your sale.

The last thing you want is a sour taste in your mouth as you exit the practice that has been such an important part of your life. An amicable split is best for all parties, so be clear in your employment contract on whether you will retain a role with the new owners or not.

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