How to Buy a Veterinary Practice: Who Hears First

How to buy a veterinary practice before it is listed: who hears first, why ownership rules vary by state, the DEA step, a 90 day plan and sample texts.

By Brett Kaufman. 8 years using relationships to build sales pipelines, from political fundraising to a 7 figure business to running matchmaking for two communities. Over 1,000 introductions facilitated.

If you want to know how to buy a veterinary practice before it hits a listing, start with the people a retiring vet already trusts: the practice CPA, its lender, distributor and lab reps, the emergency hospital that takes its referrals, and peers at the state association. Ownership rules vary by state, so settle what you can own first.

Here is the scene. A distributor rep stops at a two doctor small animal hospital on a Tuesday. The owner is 63. Her associate just gave notice. She tells the rep she is not sure she wants to hire again, or just sell.

The rep visits dozens of hospitals a month. When she asks if he knows anyone, he will name the buyer he heard from most recently. Not the best one. The most recent one.

Who hears first when a veterinarian is ready to sell?

The people inside the practice’s routine hear first, and the listing comes last. Here is my map. It is a framework, not data.

Person What they see When How you show up
The practice CPA Owner pay, retirement math Year end, tax time Be the buyer they trust with a client
Practice lenders Payoff and valuation questions When planning starts Get prequalified, stay in touch
Distributor and lab reps Orders flattening, equipment not replaced Every visit Ask which owners are slowing down
Emergency and specialty hospitals Referral patterns shifting Every month Meet the medical director in town
Relief veterinarians Who cannot find coverage Every shift They see the tired owners first
State VMA and local VMA peers The owner’s own plans At meetings and CE Show up, listen, never pitch
Practice brokers The listing Last Keep them warm too

The owners are the targets. Every other row is how you hear about them early.

Who can own a veterinary practice?

State law decides, and it varies from state to state. I am not a lawyer, so treat this as a map for your questions, not advice.

Each state’s veterinary board regulates the practice of veterinary medicine in its jurisdiction. The AAVSB regulatory board lookup lets you find any state’s board and its statutes and rules. Some states care a great deal about who owns the practice and who controls medical decisions. Others care much less. If you are not a veterinarian, this is question one, before you spend a month on a target.

Then hire a veterinary practice attorney licensed in that state, and ask three things:

  1. Can I own it directly, or do I need a licensed veterinarian as owner, partner or medical director?
  2. What does the board require when ownership changes: notices, a new facility registration, a named veterinarian in charge?
  3. How do patient records move, and how long must I keep them?

What happens to the DEA registration when you buy a vet practice?

It does not simply come with the building. A veterinary hospital handles controlled substances, and federal rules on registrations are strict.

Under 21 CFR 1301.52, no DEA registration “shall be assigned or otherwise transferred except upon such conditions as the Administration may specifically designate and then only pursuant to written consent.” A registrant who transfers controlled substance business activities to another person must notify the local DEA Special Agent in Charge at least 14 days before the proposed transfer.

Put these four questions on your diligence list:

  1. Who will hold the DEA registration on day one?
  2. Has the 14 day notice been calendared?
  3. Is the controlled substance inventory counted and documented at closing?
  4. Does the state require its own controlled substance registration too?

How to buy a veterinary practice in 90 days

Here is how I would run it, for one region.

  1. Days 1 to 14: settle the rules. Hire a veterinary practice attorney in the state. Pull the board’s statutes and rules. Confirm what you can own and how.
  2. Days 15 to 30: talk to three lenders that finance practice acquisitions. Ask each which hospitals in the area might come up in the next two years.
  3. Days 31 to 60: meet the people around the practices. Two practice CPAs, two distributor or lab reps, and the medical director at the nearest emergency hospital.
  4. Days 61 to 90: one coffee a week with an owner or a relief vet. Go to a state or local VMA meeting, or the AVMA’s national convention. End every conversation with “who else should I know?”
  5. Day 90 onward: keep a note per person with what they told you and any timing an owner mentioned. Touch each one with a real reason every six to eight weeks.

What should you text?

Short and specific. Each of these is under 40 words.

To a practice CPA:

“[Name], thanks for the time today. If a vet client starts thinking about retirement, I would value a quiet intro. I keep the team and the name, and I am glad to just listen first.”

To a distributor rep:

“[Name], good to meet you. If an owner on your route mentions slowing down, I would love to hear about it. Happy to keep the account with you after any transition.”

To an owner you met at a VMA meeting:

“[Name], enjoyed meeting you at the VMA dinner. You mentioned your associate leaving. No agenda, I would like to hear how you are thinking about the next few years. Coffee next month?”

What does a worked example look like?

Illustrative, not a real deal. Say you want a companion animal hospital within an hour of one city. Over a year you build a list of 30 people: three lenders, four practice CPAs, five reps, two emergency hospital directors, three relief vets, a VMA chapter leader and twelve owners.

Say two of the 30 mention an owner who lost her associate. A relief vet tells you first, because you texted her last month about a CE event. She makes the intro. The first real conversation is about which staff stay, who holds the DEA registration, and how long the owner will keep seeing her regular clients. No auction. No bidding against a group with a deal team.

For the owners and connectors already in your phone, see how to find owner direct business deals in your network. The same who hears first approach for dentists is in how to buy a dental practice. The full map is at deal flow for business buyers.

Where does this break?

Between visits. You meet a lender and two reps, then diligence on another deal eats your next four months. The rep hears about the tired owner and names the buyer who texted him last week. If that was not you, the coffee did not count.

That is the job I built FRONT OF MIND for. At the meeting, say a name and a sentence out loud, snap a business card or badge, or take a selfie together, and it is filed under the event. Then it opens on your 10 minutes for today. Each person has a one line reason why today: they posted, their hospital was in the news, you met weeks ago and never followed up, or they are going cold. Every draft is a text style message, 40 words max. Nothing sends without your tap, and it learns from your edits. Ask Liala “who do I know that is a relief vet” and get the right people with why.

It runs in your phone’s browser and can be saved to your home screen. There is no native iPhone app yet. Your contacts are encrypted. No one on our team looks at them. Export or delete anytime.

Start free with your first 25 contacts and see which vet contact comes up first.

See how it works

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