Buying an independent veterinary practice can be one of the most rewarding career moves you make — if you go in with a clear head and do your due diligence. Too many buyers fall in love with the idea of practice ownership, only to discover they’ve taken on a demanding job, not a scalable business.
So how do you ensure you’re purchasing a true asset with long-term income potential and not just a 7-day workweek?
Here’s a detailed checklist of what to evaluate before making an offer.
A long-standing practice usually means loyal clients, experienced staff, and steady revenue. A 10+ year history typically shows the business has weathered economic shifts and built a strong referral base. Newer practices can be attractive, but come with more risk — especially if growth has depended heavily on the seller’s reputation.
Not all clinics generate revenue the same way. Understand the range of services offered:
- General wellness and vaccinations
- Surgical procedures
- Dental cleanings and extractions
- Diagnostics (X-ray, blood work, ultrasound)
- Emergency/urgent care
- Exotic or large animal services
- Boarding and grooming
A diverse service offering can improve client retention and average revenue per visit.
Get CPA-reviewed financials for the past 3 years:
- Profit & Loss statements
- Balance sheets
- Tax returns
- Monthly production and revenue by provider
- Payroll and staffing costs
Clean books reflect good management. Sloppy or inconsistent reporting may hide issues like overstaffing, poor pricing, or unpaid receivables.
Look at trends over the last 36 months:
- Is revenue growing, declining, or flat?
- How reliant is the clinic on the seller’s caseload?
- What is the average revenue per client?
- How many active clients are there?
- Are certain services underutilized?
A healthy practice has consistent client volume and a balanced income stream.
Go beyond the reported salary. Calculate total owner benefit:
- Wages and distributions
- Personal expenses (vehicles, travel, CE)
- Family on payroll?
- One-time or discretionary expenses
This shows the real cash flow you’ll have to pay debt, reinvest, and support your lifestyle.
If you’re financing the deal, the bank will want to see:
- Strong Debt Service Coverage Ratio (DSCR)
- Verifiable add-backs
- Consistent historical collections
- Transition support from the seller
- SBA or conventional loan eligibility
Weak cash flow or unclear earnings can tank financing. Address those before making an offer.
Know the market:
- How many clinics are nearby?
- Pet ownership and population growth in the area?
- Are nearby clinics full, closed to new clients, or growing?
- Any underserved niches (urgent care, exotics, etc.)?
Local dynamics influence your future ability to grow.
Look closely at the income engine:
- Number of active clients and visits per year
- Revenue per visit and per client
- Wellness plans or membership models?
- How many clients come from referrals?
- How sticky is the client base to the seller?
Strong recurring revenue makes your transition smoother.
Equipment can make or break operations:
- Condition of surgery suites, dental machines, imaging, kennels
- Practice management system in use (e.g., AVImark, eVetPractice, Cornerstone)
- Paperless or manual records?
- Facility layout, size, and lease terms
- Room for expansion?
Budget for upgrades if needed.
Ask:
- Is the seller staying on temporarily?
- Will techs and receptionists remain?
- Any key employees with non-competes?
- How is morale?
- Will clients stay after the owner leaves?
The smoother the handoff, the stronger your early cash flow.
Think beyond day one:
- Can you expand hours, services, or staff?
- Add specialty services or mobile visits?
- Boost marketing or referral programs?
- Is there room for a second doctor?
Growth opportunity = long-term value.
Buying a veterinary practice is about investing in a future that fits your goals and your life. Ask the tough questions, and walk away if the numbers don’t make sense.
Thinking about buying a veterinary practice?
Let’s talk. We help buyers evaluate opportunities, structure financing, and buy with confidence.
