Buying a veterinary practice can be a lucrative venture for startups seeking to gain entry to the veterinary space or established practices looking for growth opportunities. At the same time, identifying a veterinary practice, determining its value, and navigating the associated legal, regulatory and tax implications requires the advice and counsel of an experienced veterinary attorney.
Mahan Law represents clients involved in purchasing veterinary practices on a local, regional and national basis through a network of co-counsel attorneys. Although buying a veterinary practice is a complicated transaction, we have the experience, knowledge, and skills that are essential for a successful acquisition.
Lead attorney Anthony Mahan focuses his legal practice on representing small business owners, particularly veterinarians. He is also the owner of a veterinary hospital, which gives him unique insights into the challenges and rewards of purchasing a veterinary practice. When you work with our accomplished team, you can rest assured that we will protect your interests and help you achieve your objectives.
Services Mahan Law Provides When Buying A Veterinary Practice
If you are considering buying a veterinary practice, working with the right attorney can make a big difference in such a competitive field. Our legal team can help you identify an established practice and then leverage our valuation expertise to arrive at a fair purchase price. In addition, we can help determine the structure of the transaction, negotiate the deal terms, and prepare the necessary legal documents, including confidentiality agreements, purchase agreements, noncompete, and nonsolicitation agreements.
The experienced veterinary attorneys at Mahan Law will be by your side through all phases of the transaction, from drawing up the letter of intent through closing. Our processes are designed to alleviate the complexities involved in buying a veterinary practice and ensure that the transaction goes smoothly.
Structuring the Deal
Acquiring a veterinary practice is initiated with a letter of intent. While this legal document is nonbinding, a properly crafted letter of intent will afford you the right to conduct due diligence. Our legal team can assist by performing a thorough review of the target practice’s patient and financial records, determining potential legal liabilities, and arriving at a proper valuation of the practice.
The purchase price is driven by factors such as whether you are only buying the practice or the real estate as well. At the same time, the seller’s price is not based solely on the tangible assets (e.g. equipment, inventory, furniture, premises, land) but also goodwill, which is comprised of the practice’s client base, employees, and reputation.
In addition to the purchase price, it is also crucial to clarify the payment terms, which may involve a combination of cash, a promissory note, and earn-outs (deferred payments based on the veterinary practice’s post-closing revenues). It is also critically important to determine whether the deal will be structured as an asset sale or a stock sale and the extent to which you will be assuming any liabilities. The attorneys at Mahan Law can help you navigate these issues so that you can make the best deal.
Given that acquiring a veterinary practice is a significant investment, our legal team can also arrange financing through a network of lenders with expertise in the veterinary space. While the purchase price will determine the loan terms, other factors the lender may consider include the cash flow of the practice and collateral (a percentage of tangible assets).
Finally, given that a practice acquisition will likely involve hiring key employees, it is critical to establish policies clarifying the employer-employee relationship. Our veterinary attorneys can help to prepare employment agreements as well as an employee handbook that explains the rights and responsibilities of the practice and its staff.
Contact Our Experienced Veterinary Attorneys
Buying a veterinary practice can be a rewarding experience as long as you do your homework and consult the right veterinary attorneys. Mahan Law has a well-earned reputation for providing our clients with informed representation and cost-effective services, which is based on a flat fee. In addition to veterinary practice acquisitions, we offer retainer plans to provide ongoing counsel on regulatory/compliance, legal and human resource counseling, civil litigation and administrative proceedings, as well as practice transitions.
When you partner with us, we will provide you with knowledge, skill, and a superior level of personal service. If you are starting a new veterinary practice or looking to grow an existing business, it is crucial to have the first-class representation we provide. We will work strategically to ensure that the transaction is handled professionally and expediently, and we will always put your best interests first. Please contact our office today to speak with our experienced veterinary attorneys.
Mahan Law helps their clients with buying a veterinary practice throughout the United States including the states of Florida, Ohio, Kentucky, and Indiana.