Choosing to sell your veterinary practice is an important personal and financial decision. While giving up a successful practice is a big step, there are several good reasons to do so. At the same time, a practice transition involves a number of moving parts, making it essential to consult with a knowledgeable veterinary attorney.
Mahan Law provides trustworthy advice to veterinary professionals around the country on all aspects of practice ownership. If you are considering selling your veterinary practice, our legal team can help you find a buyer, handle the transaction details, and close the deal. Contact or office today to get started.
Five Common Reasons Veterinarians Decide To Sell
Veterinary professionals often come to us when they are ready to sell their practices. The leading reasons include:
Retirement
Building a successful practice can be very rewarding, but after spending years managing your practice, there comes a time to consider retiring. Handing over the reins to a newly minted veterinarian or a corporate consolidator will rid you of the stress that comes with running a business. But it is crucial to plan the sale wisely to maximize the value of your veterinary practice and ensure you have the resources to enjoy your retirement.
Burnout
Burnout may be a taboo topic for any medical professional, but the long hours, high-stress levels, incessant client demands, and employment-related issues can lead to veterinarian burnout. Even veterinarians who are passionate about their work may reach a breaking point. Before you get to that point, why not call an experienced veterinary attorney for informed guidance and objective insights?
Starting a New Venture
Successful veterinarians are not only highly skilled caregivers of pets, they often have an entrepreneurial spirit and decide to seek out new ventures. So, selling the practice is one way to fund a new enterprise. At the same time, staying on during the transitional phase and providing long-term consulting will allow you to wear two hats at once.
Illness
Let's face it, anyone can suffer a serious illness at any time and illnesses can make it difficult for a veterinarian to continue running a practice effectively. The potential management challenges and impact on the business's reputation in the marketplace may inevitably lead to a sale. But the reality of the situation is that many veterinary professionals decide to sell their practices after a serious medical diagnosis so they can focus on recovering.
Death
If the owner of a veterinary practice dies, the legal ramifications can force the sale of the practice. For this reason, veterinary professionals should put in place a business succession plan as part of a comprehensive estate planning strategy.
No matter the reason for selling your veterinary practice, you must present your practice to potential buyers in the best possible light. By working with an experienced veterinary attorney, your can prepare your practice for a sale, market your practice, and maximize its value.
What Else You Need to Know About Selling a Veterinary Practice
If you are considering a practice sale, there are a number of important decisions to make, such as:
- Whether the transaction will be as an asset sale or a stock sale
- Whether the buyer will be assuming any of the practice's liabilities
- Whether the transaction will involve seller financing
- Whether there will be potential tax consequences
Because the buyer has the right to conduct due diligence, it is critically important to put in place a nondisclosure agreement (NDA) to ensure that sensitive patient and business information remains confidential. Our veterinary attorneys know the ins and outs of confidentiality agreements and will make sure your interests are protected.
How Mahan Law Can Help
When the time comes to sell your veterinary practice, you will need a team of professionals around you, starting with a business-minded veterinary attorney. As the owner of a veterinary clinic, Anthony Mahan understands what it takes to run a successful practice and how to navigate practice transitions.
Mahan Law regularly collaborates with veterinary attorneys and brokers nationwide who understand regional markets. We combine legal knowledge with business acumen to help our clients engage in successful transactions. Once you become our client, we will handle all the details of selling your veterinary practice, including:
- Conducting an accurate appraisal of your practice
- Promoting the sale of your practice
- Locating a buyer
- Negotiating and structuring the transaction
- Preparing transaction documents – letter of intent, confidentiality agreement, purchase agreement, non-compete agreement
- Transferring intangible assets
- Advising on regulatory/compliance and governance matters
Above all, we will work to ensure that the transaction closes expediently so that you can move ahead with the next chapter in your life.
Contact Our Experienced Veterinary Attorneys
To sell a veterinary practice may be the single largest financial transaction you undertake in your lifetime. The best way to come out on top is to have a seasoned veterinary attorney on your team. Contact our office today for a consultation.