Selling a Pet Services & Veterinarians Business

Most veterinary practices sell on a multiple of cash flow, usually EBITDA for larger clinics and SDE for owner-operators. Value moves with doctor and tech coverage, how much revenue depends on one veterinarian, and the cleanliness of medical records and compliance history. Buyers also price in the cost to replace the selling vet’s production and admin time. To get a baseline, use Rejigg’s free valuation calculator, then sanity-check it against appointment capacity, utilization, and market wages for associate vets and a practice manager.

Grooming, daycare, and boarding tend to be underwritten like capacity businesses: groomer throughput, kennel or playgroup utilization by day and season, cancellation rules, and supervisor coverage matter a lot. Vet clinics lean more on provider economics, like doctor days, average invoice, procedure mix, and compliance and medical record defensibility. In both cases, the multiple drops when the business is concentrated in one producer or one shift lead. It’s worth showing buyers your capacity metrics and staffing bench early so they don’t assume fragility.

Yes. SBA 7(a) loans are common for profitable clinics, grooming shops, daycare, and boarding businesses when the financials are clean and cash flow supports debt service after replacing the owner’s labor. Lenders usually focus on add-backs, lease terms, working capital needs, and producer concentration, like an owner-vet or lead groomer driving most revenue. If the buyer must hire coverage right away, that payroll needs to be in the model. You can test the numbers with Rejigg’s SBA loan calculator.

Many pet business sales close in 3–9 months from “ready to list” to closing, but it depends on readiness and financing. SBA deals can add time, and diligence drags when leases, equipment lists, incident logs, and controlled-substance procedures are scattered. Buyers also slow down when they can’t get comfortable with staffing coverage or a realistic owner-replacement plan. Rejigg helps you move faster by organizing documents in a data room and tracking requests so you don’t lose momentum between calls and diligence.

No. A broker can be helpful, but many owners run a good process themselves if they have buyer access and a clean diligence workflow. Brokers often charge 5–10% for sourcing, filtering, and deal coordination. Rejigg is free for sellers and provides pre-vetted buyers, digital NDAs, a secure data room, messaging, scheduling, and offer comparison. Most owners still use an attorney and CPA for structure, contracts, and taxes, even when they skip a broker.

Asset sales are common because they make it clearer what transfers, like equipment, phone numbers, the lease, and the brand, and they usually limit assumed liabilities. Vet clinics can add wrinkles around medical record custody, controlled substances, and vendor accounts, so it’s worth planning the transfer steps early. Stock sales can make sense in some tax or licensing situations, but buyers typically dig deeper into historical liabilities. Rejigg’s deal negotiation guide walks through tradeoffs and common terms.

Buyers usually request financial statements and tax returns, payroll summaries, the lease, an equipment list with service history, insurance policies and claims history, and key vendor agreements (labs, distributors, cremation, waste). For vet clinics, expect controlled-substance logs and policies, inspection history (if any), and a clear overview of your medical record system and retention practices. Getting this together early prevents weeks of follow-up emails. Rejigg’s due diligence checklist pairs with a permissioned data room.

Buyers want enough working capital to run payroll, pay vendors, and keep inventory on hand, like meds, diets, vaccines, and grooming supplies. Buyers look at inventory levels, prepaid packages and memberships, payables timing, and whether repairs have been deferred. When offers differ on “cash-free, debt-free” and working capital, Rejigg’s offer comparison view helps you translate terms into real net proceeds.

Rules vary by state, but buyers need clear answers on custody, retention, and client access after closing. In practice, you want a simple packet that explains which PIMS holds the records, who the custodian is, how record releases work, and how records will remain accessible and defensible post-close. Buyers also care about continuity so reminders, rechecks, and callbacks do not fall through during transition. Rejigg helps you share a records handoff summary under NDA so buyers can get comfortable without broad disclosure.

Often yes, at least for a short period, especially when clients book with the selling veterinarian or the seller is a meaningful part of doctor-day capacity. The details matter: agree on schedule, pay, clinical autonomy, and who decides pricing, vendors, and staff issues. You also want an end date so the buyer can truly take over. A vague arrangement can confuse staff and clients. Rejigg’s transition planning guide helps you structure a clean handoff.

It depends on state law and the person’s role. Buyers commonly ask the seller for a non-compete and non-solicit, particularly when the seller is the face of the clinic or has deep relationships with local clients and rescues. For key staff like associate vets, lead groomers, and managers, buyers often rely more on retention tools since employment non-competes can be limited or unenforceable. Have your attorney draft terms that are reasonable in geography and duration. Rejigg helps you track these terms across offers so nothing slips in unnoticed.

They come up when the buyer sees retention risk, like a clinic built around the seller’s personal caseload, a grooming shop anchored by one star groomer, or thin staffing coverage. Earnouts can bridge a valuation gap, but they can also create disputes if the metric is messy. Definitions should be simple: what counts as revenue, how refunds and discounts are treated, and what happens if hours or staffing change. If you consider an earnout, ask for clear reporting rights. Rejigg’s deal tracker makes it easier to compare earnouts against cash-at-close and seller notes.

Most deals are priced on cash flow, but equipment condition can change price and terms quickly. In vet clinics, aging dental, anesthesia, imaging, or autoclave equipment can trigger credits or repair escrows. In boarding and daycare, HVAC, drainage, washers, and dryers are the usual deal friction because downtime leads to cancellations and reviews. The best path is an honest equipment list with service history and near-term replacement needs, supported by quotes when you have them. Rejigg’s data room makes sharing logs and quotes straightforward.

Taxes depend on structure, allocation, and entity type. Asset vs. stock, how you allocate the purchase price across goodwill, equipment, and any non-compete, and whether you are an S-corp, LLC, or C-corp all change the result. Vet clinics often have more equipment allocation, while grooming, daycare, and boarding may skew toward goodwill and leasehold improvements. Since allocation affects ordinary income versus capital gains, bring your CPA in before signing an LOI. Rejigg helps you keep structure and allocation terms tied to each offer so you can model after-tax proceeds.

Confidentiality helps prevent staff departures and client anxiety. Limit early sharing to high-level metrics, require an NDA before identifying details, and keep onsite visits discreet. You can also stagger disclosure so only serious buyers see schedules, client lists, and staff rosters. Rejigg supports this by pre-vetting buyers, using digital NDAs, and letting you control document permissions in the data room. When it’s time to tell staff, come with a clear message about continuity, scheduling, and what changes, if any, are immediate.

The common deal-killers are messy financials, brittle staffing coverage, compliance gaps, and facility risks that can cause downtime. In clinics, controlled-substance procedures and record quality can become major diligence issues fast. In grooming, daycare, and boarding, weak incident documentation and thin supervisor coverage spook buyers because one bad day can become a review spiral. A shaky transition plan also hurts because buyers fear client and staff churn. Rejigg helps you surface these early by organizing operations and documents the way buyers actually diligence.

Yes, but buyers focus heavily on what transfers. They will look at route density, scheduling rules, rebooking cadence, vehicle condition and maintenance records, and how much demand is tied to the seller’s personal brand. If one provider or groomer drives most revenue, buyers price the risk that they leave or cut hours. It’s worth documenting service areas, cancellation and deposit policies, and your plan for vehicle and equipment uptime. Rejigg’s buyer vetting and NDAs are especially helpful for mobile operators who need to protect routes and client lists.

Seller financing can widen the buyer pool and sometimes lift price, but it adds repayment risk, especially in businesses sensitive to staffing turnover or seasonal boarding swings. Most sellers push for a meaningful down payment, clear default remedies, and regular reporting so problems show up early. It’s also worth pressing the buyer on their coverage plan for associate vets, groomers, and shift leads because payroll mistakes hit pet businesses quickly. Rejigg’s offer comparison tools help you weigh seller notes against SBA or cash offers based on certainty, not just headline price.