Selling Your Ohio Veterinary Practice: What You Need to Know

Infographic: Factors that Influence the Value of your Vet Practice (click to expand)

Determining the Value of Your Practice

The first and most crucial step of selling a veterinary practice in Ohio is determining its value. Veterinary practice valuation process extends past physical assets and real estate ownership. The majority of potential buyers evaluate veterinary practices through their EBITDA numbers and owner's discretionary earnings calculations. The value of an Ohio vet practice increases when it operates in a suburban area with expanding population – but decreases when operating in a rural area with minimal population growth.

The value of your practice increases with state-of-the-art medical equipment and technology and a good online reputation. If you have outdated systems or a negative reputation, the value of your practice will decrease. A veterinary-specific broker who is familiar with the Ohio market should perform an independent valuation assessment to provide you with an exact value for your practice before starting negotiations.

Finding the Right Buyer

The search for an appropriate buyer is one of the most difficult aspects of the selling process. Some practice owners want to sell their business to another veterinarian who will preserve the practice legacy and keep existing client relationships intact. Corporate consolidators who acquire veterinary practices offer higher prices, but their acquisition methods can transform the practice culture. The main priorities for most Ohio vet practice sellers are receiving a fair value, providing continuous patient care, and maintaining workforce stability to continue their legacy.

Selling a vet practice in Ohio requires discreet marketing. Confidentiality protects both staff members and clients until the sale becomes final. Good veterinary brokers have a network of local professionals, including attorneys, CPAs, and bankers who serve as valuable resources to find qualified serious buyers.

Tax Planning and Deal Structure

The tax implications of the sale need to be considered at all times. The way you structure your sale between asset sale and stock sale determines your final tax amount after the deal. The majority of small veterinary practice sales in Ohio follow asset sale structures. This enables buyers to claim asset depreciation, but results in taxable gains for sellers. The way you distribute the purchase price between goodwill, equipment, and real estate determines your total tax liability.

You should consult a tax advisor at least one year before the sale date. At Vista, we work with your CPA to explore different tax reduction strategies. These include retirement fund contributions, installment sales, and charitable trusts to minimize your tax obligations. Ohio state tax regulations require local expertise to understand their specific impact on your situation.

Other Considerations

Real Estate: We use our knowledge of the Ohio market to determine if selling your building property or entering into a lease agreement with the buyer would be more beneficial. Real estate ownership enables you to generate rental income through long-term property leasing, if you choose to do so.

Buyers will offer higher prices when they observe dedicated client loyalty and ongoing revenue streams. The confidence of potential buyers increases when you show them consistent preventive care services, wellness plans, and long-term client relationships.

The new owner will request your presence for 6-12 months to help maintain client relationships during the transition period. The transition period will be smoother after the sale when you plan ahead.

Selling your Ohio veterinary practice is a huge life change, and financial planning is just one part of the process. Our holistic approach also includes planning for the non-financial aspects of the transition process. We help you assess what you want your involvement to be post-sale. This informs who we bring to you as a buyer, so you don't waste your time on buyers who won't accommodate your desired level of involvement. If you still want to be involved post-sale, we negotiate a compensation structure for you with the new buyer. We also help you navigate the transition to a new identity and work schedule.

Final Thoughts

The sale of your Ohio vet practice represents a significant achievement in your career. However, it is a demanding process that requires you to maintain financial objectives while protecting patient welfare and maintaining workforce stability. Your Vista transition expert will take care of the sales process, so you can focus on your patients and staff. We apply our knowledge of Ohio tax laws, Ohio real estate laws and regulations, and the Ohio veterinary practice market throughout the transition process. Our consideration of Ohio-specific factors ensures you obtain a fair price, while providing peace of mind during your life transition.

Ready to sell your Ohio veterinary practice? Contact the Ohio-based experts at Vista today!