The exit of a business is incredibly tricky and oftentimes people wait too long to start approaching the exit.
Let’s say that you are interested in wanting to sell your business in the next five years. If you’re wanting to sell to a corporation, well, now is a good time to start considering that. If you’re wanting to sell to an employee, the conversation ideally would be best to start 10 years in advance.
So if we can be able to consider, “Okay, well, if I have enough time, this can be able to work through a lot of the kinks and the understandings of what was going to work. How do I maximize what I’m going to get from my business? And at the same time, is this going to be a win-win for every person that’s getting involved?”
There are a lot of times people are just burnt out. They’re exhausted. They’re just ready to get out of business. And that’s the worst time to start planning because now we’re over here in more desperation- than an inspiration-type mindset.
Oftentimes, people don’t know where to begin when it comes to selling their business. There are three doors that you can walk through when it comes to getting out of the ownership of your business. The first one is you can sell it to an employee. You can sell to a group of employees. Sometimes the biggest caveat to that though, is there’s just not enough money to be able to finance the deal. There needs to be a certain amount of income coming from the business to support a certain purchase price.
Sometimes financing tends to be very restricted. So some of it might need to be financed by the seller. And then also at the same time, maybe through a bank note, maybe through cash that the person who’s buying it can get. It tends to become a little bit stickier and can be a bit more challenging to do something like that, which, there are options that can be implemented to approach that. If that was a desire or direction that you wanted to maintain the business in its form.
The second door is you can sell to a corporation or an investment group. Oftentimes, depending on the industry, the investment group might offer you substantially more than selling to an employee. And the biggest reason behind that is because they see a bigger picture and they have investors and a lot of cash to be able to buy businesses at a higher value, which a value is based off of often by the profits that is being generated. Most businesses are based off of profits. They might offer a higher multiple of your profits because they’re going to come in here and try to streamline efficiencies, they’re going to adjust pricing, they’re looking at it that this business is going to turn in five times what it is right now. So they’re ambitious and excited and depending on if you’re a, what they call a genius model, to where the genius is like you are so reliant on, the business is so reliant on you to produce revenue, that can also decrease the value of your business pretty significantly because well, if you’re gone, what happens next?
And then the third one is, well, you could just keep your business, retain some type of ownership in it. Maybe you become a silent partner. Maybe you just keep working that business until the day that you decide that you want to close the doors or eventually when you do decide once you pass. When you’re no longer here, well, now the business is going to pass on to the next person, which now, well, we got to really consider legacy continuation of that business if that’s a goal of yours.
And those also fit in the other categories too: it’s your employees or selling to a corporation. So if something were to happen, well, we want to make sure that what will happen to that value of the business. So when you really can be able to dial in which way you want to go, well, that can really be able to help you determine, “Okay, when should I start and what path should I go down?”
And we’ll talk a little bit more on, “Well, how do I go about approaching the employee buy-in or when I go to approach looking to the corporations who present my best, well, what way can I go?”
If this is something you’re considering and you’re wanting to look through your options, you want to understand, hey, how do I approach this that I can be able to get the most bang for my buck? Drop us a line, reach out to us. We’d be happy to schedule a no-cost consult with you to talk about your plans and your ambitions and see where we can go from there.
Video Recap:
Why Exit Planning Matters Sooner Than You Think
Too often, practice owners delay thinking about their exit until they’re exhausted, burned out, or forced into a decision. This reactive approach can lead to rushed transitions that don’t reflect the true worth of the business—or the owner’s long-term goals. Strategic exit planning gives you time to explore your options, strengthen your financial position, and design a transition that works for everyone involved.
The exit of a business is incredibly tricky and oftentimes people wait too long to start approaching the exit.
Three Common Paths to Transition
Every veterinary business is unique, but most exit strategies fall into one of three categories:
- Selling to Employees
This option appeals to owners who want to reward loyal team members and preserve the culture of the practice. However, it can be challenging. Financing is often a hurdle for staff members, and the process can take time to structure properly. - Selling to a Corporation or Investment Group
Corporate buyers and investment groups are often willing to pay a premium—especially for practices with strong profitability and growth potential. While this path may offer a higher valuation, it’s important to consider what changes may follow in practice operations or team dynamics. - Maintaining Ownership or Passing It On
For those who want to stay involved or pass the practice to a family member or partner, partial ownership or legacy planning can be ideal. These arrangements require clarity, especially around roles, expectations, and financial outcomes.
Timing Is Everything
Regardless of the path you choose, the earlier you begin planning, the better positioned you’ll be to maximize the value of your practice and ensure a smooth transition. Exit planning isn’t just about stepping away—it’s about making intentional choices that align your business with your personal financial goals.
Final Thoughts
If you own a veterinary practice, your exit strategy is more than just a business decision—it’s a personal milestone. Starting early gives you the flexibility to explore your options, avoid unnecessary stress, and walk away on your own terms. Whether you sell, stay partially involved, or pass it down, your transition should reflect the same care and foresight that built your business in the first place.
This material is intended for general public use. By providing this content, Park Avenue Securities LLC and your financial representative are not undertaking to provide investment advice or make a recommendation for a specific individual or situation, or to otherwise act in a fiduciary capacity. Guardian, its subsidiaries, agents, and employees do not provide tax, legal, or accounting advice. Consult your tax, legal, or accounting professional regarding your individual situation. Tom is a Registered Representative and Financial Advisor of Park Avenue Securities LLC (PAS). Securities products and advisory services offered through PAS, member FINRA, SIPC. Financial Representative of The Guardian Life Insurance Company of America® (Guardian), New York, NY. PAS is a wholly owned subsidiary of Guardian. Florida Veterinary Advisors and The Next Step Planning Group are not an affiliate or subsidiary of PAS or Guardian. California Insurance License #0K80141. AR Insurance License #15823672. Florida Veterinary Advisors is not registered in any state or with the U.S. Securities and Exchange Commission as a Registered Investment Advisor. The individuals associated with Florida Veterinary Advisors do not maintain specialized licenses or qualifications for the financial services provided to veterinary professionals. 7989827.1 Exp 5/27