Own The Exit: Grow, then sell your practice and keep its soul intact

So, you’re trying to scale and build and grow a practice you can sell later, but don’t know who to sell to? One of the things I hate seeing is mature veterinary businesses closing their doors because they couldn’t sell it or were not aware of all the available options. Why not make it something desirable to buy! You can look around your hospital and not know where to start, but there’s already other models out there.

The following three alternative strategies are crucial for maintaining independence and serving your beloved community for years to come.

Veterinary practice owners have viable alternative strategies for their businesses beyond selling to corporate or private equity firms, which often leads to the feeling of “selling the soul” of their business. Many veterinarians reach a point of exhaustion and believe corporate sale is their only option partly because they are unaware of other choices. So, what if the path you really wanted was to create a partner track for your amazing associates to continue your legacy in your style? Indeed, this is a superb option, but you will need to attract someone another way like in human care, accounting, or attorney practices. The partner approach in similar fields is already a successful model where owners successfully transition their practices to providers they trust to carry on their legacy as well as the soul of their practice for the good of the community. A key method for this is to create a partner track for your amazing associates, allowing them to continue the practice in your style. This ensures the practice’s values and foundational work, established by the current owner, continue to serve the community effectively.

Now that you understand the pathway to do it, the second thing you need to realize is that no one is going to buy the business you currently have. You probably thought about that the moment you considered your exit in the future. Owners often perceive their practice as a fully formed business, but to potential buyers, it may sadly appear instead as a really stressful job. Therefore, it is crucial to build up the business in the coming years to make it desirable for purchase. This perception is a critical issue because it highlights the gap between an owner’s perception and a buyer’s perspective. The effective solution to this challenge is to follow best practices and build it up. This transformation aims to make the practice something desirable to buy, moving it beyond just a demanding role to become a true asset. A concrete example of this strategic building is Patricia, who delegated nearly all admin duties. Such delegation not only frees up the owner’s time, thereby reducing the “stressful job” aspect, but also makes the business significantly more appealing and less daunting for a potential successor. This strategic improvement allows the practice to become a genuine, attractive asset that can potentially drive up more profits and simplify the owner’s life, rather than being just a demanding personal endeavor.

Thirdly, owners must prioritize long-term succession planning by acting significantly sooner rather than later. A major problem frequently encountered is that people try to do this in the last 6 months or 12 months before they shut their door or attempt to sell, which is profoundly not enough time. This rushed approach often stems from the exhaustion and burnout many veterinarians experience, leading them to believe selling to a corporate or private equity firm is their only way out. The effective solution, conversely, is to create a five-year or three-year pathway for succession. By looking years ahead, practice owners allow themselves ample time for proper preparation of the business and to actively attract a suitable successor. This proactive approach contrasts sharply with the reactive, last-minute attempts that typically fail or force an undesirable corporate sale. Deciding to act sooner, rather than later, can in fact significantly reduce the pressure to sell at all. Amazingly, this can allow owners to choose to continue enjoying the high profits for a longer time prior to taking an exit, rather than feeling compelled to sell their business to a corporation that might rip the soul out of the business and support the community far less. This long-term foresight ensures a smoother, more beneficial transition that aligns with the owner’s legacy and community commitment.

In conclusion, while many veterinarians understandably reach a point of exhaustion and feel that selling their practice to a corporate or private equity firm is their only way out, this perspective often stems from a lack of awareness of viable alternatives. The fear of “selling the soul” of a business built over a lifetime, potentially leading to less community support, is a legitimate concern. However, as discussed, there are strategic pathways to avoid this outcome and maintain the independence and great work of independent, local veterinary practices.

By implementing these three strategies, veterinary practice owners can secure their legacy, maintain their commitment to community service, and ensure a prosperous and independent future for their businesses.

Hopefully now, as you read this, you understand the exit and outcomes you’re looking for are really achievable if you just do a few key things sooner rather than later. Of course, to do this, it does take change, and I know that can be a little daunting. So, if you’d like some customized advice, you’re welcome to schedule a free call directly with me. Just click the calendar link below:

Finally, as you were reading this you may have thought of a friend or network that would find it useful, please share it with them – I’d really appreciate it.

Melanie and James have been responsible for numerous success stories of their own, transformed practices into skyrocketed growth, and helped practice owners take back their personal and family time from the crushing weight of business fears. They are outspoken advocates of independent veterinary practice, Friction Pathfinder experts, and nationally published healthcare Fellows. They both have MBAs in health services and operations management from top graduate universities.