Selling your Veterinary practice? Selling up, not selling out

If you’re a vet who owns their practice, chances are this thought has crossed your mind recently:

“Should I sell now while values are high?” Or maybe: “How do I even start planning for a sale that’s years away?”

There’s no doubt that the veterinary industry is in an odd place. Demand for vet services is still high, but staffing is a headache. You’re stretched. Maybe even fed up. At the same time, private equity and the big corporates are hoovering up practices with astonishing speed and often with eye-watering valuations.

So, here’s the question: how long do you ride this bubble before it bursts? Because one thing is certain. At some point, you’ll exit your business. Whether that’s selling up, stepping back, handing over to someone new, or closing the doors for good.

I have recently read an article that discussed how the economic model lends itself to 18-year cycles. The recent speeding up of acquisitions by the big players may suggest that practices are letting go of the rising balloon now because they don’t see much future for the bubble.

What matters most is this: do you have a plan?

You’re not selling out, unless you have no plan at all

Some practice owners we speak to are in no rush to sell, but they’re keeping a close eye on the market. Others are tempted by the idea of offloading all the stress and walking away. Neither is wrong. But what’s risky is waiting too long, assuming you’ll know when the time is right, and then making decisions under pressure.

We’ve seen it too often: an offer comes in that’s better than your wildest dreams. You’re ready to take it. But without proper planning, the tax hit could be brutal. In the worst-case scenarios, we’ve seen business owners lose over 50% of the sales value in tax. With the right structure? That figure can drop below 10%.

Having a plan doesn’t mean you have to sell now. It just means you’re in control when the opportunity comes.

What are your options when the time comes?

There are four main ways to exit a veterinary practice. Each comes with pros, cons and very different financial outcomes.

1. Sell to a corporate

This is the most common route right now. The corporates are buying fast and paying strong multiples. If you’re looking to retire or move on soon, it can be a tidy and profitable exit. But it’s not as simple as signing a deal and walking away.

Most deals come with earn-outs, lock-ins or transition periods. You’ll likely be working in the business for a few years post-sale. You’ll also need to think carefully about tax planning, especially if you own the building or hold assets in a personal name.

2. Sell to another vet

Selling to another vet or independent buyer can still yield a decent return, but the value is often lower than a corporate offer. That said, you might feel more comfortable selling to someone who shares your ethos or who wants to keep the practice independent.

There can also be more flexibility in how you structure the deal and how involved you stay afterwards.

3. Bring in new partners

This is the most interesting option for vets who still love the profession but want to reduce their involvement over time.

Bringing in a partner (or multiple partners) allows you to de-risk gradually. You can sell a share of the business now, take some cash out, and still earn a good income as the business grows. Over time, you can reduce your hours, responsibilities and eventually sell the rest of your share.

In a few years, this route might top the list as the most viable and valuable, especially if the corporate appetite slows or valuations dip.

4. Close the doors

This is the last resort and usually only applies when a practice is no longer viable. If the business has declining revenue, no buyer interest and no clear future, winding up may be necessary. But it’s rarely the most financially rewarding option. Often, you’ll lose money after accounting for redundancy, lease exits and asset disposal.

The point is, you need to be thinking about these options well in advance so you don’t end up boxed into one.

This time next year, Rodney…

Most business owners underestimate how long exit planning actually takes. Even if you’re not thinking of selling for another 10 or 15 years, decisions you make now will shape what’s possible later.

You don’t want to be the one who gets a dream offer, only to find that your accounts aren’t sale-ready, your tax position is a mess (costing you 50% in tax when it could be 10%!), or your practice is too dependent on you to run without you.

Start treating your business like the valuable asset it is. That means understanding its value, thinking about succession, and getting the right advice early.

Action plan

Here are some practical steps we walk through with our veterinary clients, whether they’re three years or twenty years from exit.

1. Get a proper valuation – Not just what you think the business is worth, but a realistic market-based valuation from someone who understands veterinary practices. Then update it every couple of years. You review your pension pot regularly, why not your business? It is your life’s work after all! We can do this for you. Click here to get in touch with me to arrange your business valuation.
2. Think about the buyer – Who would you want to sell to? A corporate? Another vet? Someone already in the business? The answer will shape how you prepare and when you sell.
3. Plan your involvement – Do you want to keep working part-time? Retain ownership of the building? Stay on as an adviser or mentor? These decisions affect both tax and deal structure.
4. Tidy up the books – Get the accounts in order. Buyers want clean, consistent financials. If your bookkeeping is behind or your income looks volatile, it’s a red flag and a value dropper.
5. Reduce owner dependence – If the business can’t run without you, it’s worth less. Start putting systems and people in place now, so the business continues to thrive without you in every consult room.
6. Get proactive tax advice – This is not just about saving tax. It’s about structuring the business in a way that gives you options.

There are smart ways to hold property, use trusts, and stagger sales. But you can’t do that last minute.

What’s stopping you?

One of the biggest blockers we see is inertia. You’re busy. The practice needs you. There’s never a good time. But if you want the sale to fund your next chapter, whether that’s retirement, another business, or just more time off, you need to be intentional.

If you’re five years away from sale, this is the moment to start shaping the story you want to tell. If you’re ten or fifteen years away, you’ve got time to maximise the value.

Letting go of your practice is a big decision. But the real mistake isn’t selling too soon. It’s not planning soon enough.