It’s never too early to start planning for the future and laying the groundwork for your veterinary practice exit strategy.
Having a veterinary practice exit strategy in place helps you maximize your return on investment and ensures your practice sells more quickly and smoothly when the time is right.
The thought of leaving your practice can be uncomfortable, but a well-prepared doctor
with a solid exit strategy will be ready to step away on their own terms.
10 STEPS FOR A SUCCESSFUL EXIT STRATEGY
1
CONSIDER A REAL ESTATE OPINION VS. APPRAISAL
2
PREPARE YOUR PROPERTY FOR SELLING
Resolve any outstanding issues related to the property before listing. This includes encroachments, zoning or permitting problems, and potential environmental concerns—such as the disposal of X-ray processing chemicals—that could complicate a sale.
3
KEEP FINANCIAL RECORDS IN ORDER
Ensure your accounting system is up to date and capable of generating accurate, detailed reports. Clean financials are essential for buyers and will be critical during due diligence. Your broker can guide you on the specific documents needed.
4
STAY AWARE OF THE LOCAL MARKET
Identify potential buyers in your area, such as competitors or local associates. An associate buy-in or merger may be a viable exit path worth exploring.
5
ESTABLISH A SYSTEM OF DOCTORS
Maintain a reliable system for relief doctors, associate rotations, and referrals to specialists or emergency services. This ensures continuity of care and makes your practice more attractive to potential buyers.
6
EVALUATE EQUIPMENT INVESTMENTS
PS Broker can help maximize your return on equipment. As you approach your exit, avoid entering new equipment leases that may carry costly early termination fees. Be selective with upgrades—focus only on improvements that add real value and avoid unnecessary capital expenses.
7
MAKE A PERSONAL FINANCIAL PLAN
Consult with a financial planner to align your exit strategy with your long-term financial goals. PS Broker can connect you with advisors who specialize in working with veterinary professionals.
8
REVIEW YOUR LEASE AGREEMENT
If your practice is in a leased space, ensure the lease is multi-year, renewable, and transferable. A cooperative landlord and clear terms—especially regarding expansion or renewal—can make your practice more appealing to buyers.
9
CREATE AND MAINTAIN AN EQUIPMENT LIST
Keep a detailed inventory of your equipment, including model and serial numbers. A current list speeds up the sales process and demonstrates organizational readiness.
10
CONTROL YOUR INVENTORY
Inventory should remain lean. Typically, buyers expect about six weeks’ worth of supplies included in the sale. Avoid bulk purchases, even with discounts, as excess inventory may not be reimbursed and can complicate the transition.