Since 1977, we’ve been the business advisor and broker to thousands of veterinarians, and it’s been our pleasure to be part of their career journeys. Our team of experts specialize exclusively in veterinary practice sales, appraisals, and brokerage.
We’re passionate about providing the best service, honest guidance, and education about profitable practice ownership and valuation to those in the veterinary field. Take advantage of our article library to learn more about Simmons and feel free to reach out to us if you have any questions.
Be notified instantly when new veterinary practice listings hit the market.
If there’s one thing we, at Simmons & Associates, have learned after decades of helping veterinarians sell practices, it’s this: The practices that command the strongest offers are rarely the ones that tried to “get ready” six months before selling.
They’re the ones that were run well all along.
Too many owners assume buyers are mainly evaluating medicine, reputation, or gross revenue. Those things matter, of course. But buyers—especially sophisticated buyers—are really evaluating risk. They are asking themselves one central question: How predictable and transferable is this business once the current owner leaves?
That’s why preparation matters so much. And it’s also why certain mistakes consistently hurt practice value, even when the owner’s intentions are good.
Here are seven of the biggest dos and don’ts we’ve seen over the years.
There’s nothing wrong with wanting your hospital to look nice. Clean, modern facilities absolutely matter. But owners sometimes confuse “impressive” with “valuable.”
It may sound nice to remodel your lobby to rival that of a boutique hotel or spa. The client experience matters, right? However, if the treatment area behind the lobby is cramped, inefficient, and difficult for staff to work in, buyers will take notice, and not in a good way.
Most buyers care far more about workflow, efficiency, and profitability than luxury finishes.
Facility improvements should improve how the practice operates—not just how it photographs. Better treatment flow, additional exam room utilization, updated flooring, improved lighting, and functional workspace improvements usually provide far better returns than high-end cosmetic renovations that do little for productivity.
Almost every broker has walked through a hospital and heard some version of: “We bought that ultrasound two years ago but never really got around to using it.”
Unfortunately, buyers rarely pay full value for unrealized potential.
Equipment only adds value when it becomes part of the hospital’s daily operations and contributes to revenue and profitability. Digital radiography, dental suites, in-house lab equipment, and ultrasound can absolutely strengthen value—but only if the team uses them consistently and confidently.
A practice filled with underutilized equipment often tells buyers something they don’t want to hear: the owner made emotional purchasing decisions instead of disciplined business decisions.
One of the most common mistakes owners make before selling is realizing they’ve underpriced services for years and trying to “catch up” all at once.
The problem is that sudden fee increases can create client attrition and unstable revenue trends right before a sale—exactly when buyers want predictability.
Buyers generally prefer to see steady, disciplined pricing adjustments over time. It demonstrates thoughtful management and a healthy understanding of the market.
Sometimes veterinarians mentally begin retiring years before they formally sell. Production softens. Hours are reduced. Operational discipline slips. Investments get postponed. Before long, profitability starts trending downward.
The problem is that buyers do not pay for what the practice used to earn. They pay for current and projected future performance.
We’ve seen owners delay selling for several years, assuming the practice would maintain value automatically, only to discover declining profits, staff turnover, or operational stagnation significantly reduced buyer interest.
Alternatively, some sellers are tempted to hold out longer to improve their practice value before going to market. The problem here is they are already burned out and, often, the value declines more rather than improving.
Strong valuation multiples are usually reserved for practices that demonstrate growth, consistency, and operational energy—not practices that feel tired. The key is having a practice valuation multiple times throughout ownership but a minimum of two years prior to listing the practice for sale.
This issue comes up constantly.
Many owners run legitimate discretionary expenses through the business. That alone is not unusual. The problem arises when bookkeeping becomes inconsistent, unclear, or excessive.
Buyers and lenders want financial transparency. When financial statements are disorganized or filled with questionable adjustments, buyers start discounting value because uncertainty equals risk.
Clean books build confidence.
One of the best things an owner can do years before selling is work with a knowledgeable accountant who understands veterinary practices and can help normalize financial reporting long before due diligence begins.
Preparation should feel like organization—not cleanup.
Large capital projects close to retirement often create frustration because the seller absorbs the cost while the buyer receives much of the benefit.
We’ve seen owners take on substantial debt for major renovations or equipment purchases within a year or two of selling, only to realize there wasn’t enough time left for those investments to meaningfully improve earnings.
Debt itself is not inherently bad. Smart investments can absolutely increase value when implemented early enough. But timing matters.
The closer you get to a sale, the more disciplined capital spending should become. The key is to implement upgrades early enough that you enjoy the benefits and return on investment, and the buyer gains the benefit of buying a modern, more efficient facility.
This may be the most important issue of all.
Practices heavily dependent on the owner almost always feel riskier to buyers. If the owner handles every difficult case, manages every staff issue, maintains every client relationship, and controls every operational decision, buyers immediately start calculating how difficult that transition will be.
Strong teams create stability.
Buyers want to see associate veterinarians, capable technicians, and practice leadership that can continue operating successfully after ownership changes. In high-value practices, the team is often the backbone of success.
A well-developed team doesn’t just increase practice value—it also makes ownership considerably less stressful during the years leading up to a sale.
Preparing a veterinary practice for sale is rarely about making dramatic changes at the last minute. More often, it’s about avoiding the slow accumulation of bad habits and neglected decisions that quietly erode value over time.
The owners who achieve the best outcomes typically run their practices as if they could sell at any point—even if retirement is still years away.
Ironically, those same habits usually create something even more valuable in the meantime: a healthier business, a stronger team, and a practice that’s simply more enjoyable to own.
Want to dive deeper? We invite you to watch our latest Hour with the Experts webinar, “Investing Smart—How to Update Your Practice Without Hurting Exit Value.” Simmons’ Kate Owens, DVM, MBA, CVA, was joined by Robert Gibson from Provide, and Gene Bauer, DVM, from Blue River Petcare, as they explore the factors that private and corporate buyers look for in a purchase and how you can best prepare to meet the demand when it’s time to sell.
This article was originally posted on www.simmonsinc.com. Any reproduction on any other site is prohibited and a violation of copyright laws.
