Planning for your eventual retirement from equine practice requires thoughtful consideration of a succession plan. In the past, most group practices offered partnership to their most talented associates within five years of their tenure. Integrated into the management of the business early in their careers, these younger partners were often ready to buy out the senior owners and continue the practice’s legacy when the time came. In small or solo practices, the older veterinarians often continued to work well past the typical retirement age and eventually sold their business to a young associate or new graduate.
In the past two decades, this approach has begun to change. One potential reason is the demographic shift of veterinary school graduates to a strong female majority. As these young women begin their careers in equine medicine, they often want to start families. The additional responsibilities of practice ownership can seem daunting while raising children. Another potential culprit is that practice owners are not offering partnerships due to uncertainty about the profession’s future. Whatever the cause, ownership transitions at retirement have become more difficult.
Selling to a Corporate Aggregator
As harvesting the value of shares in an equine practice became more challenging, opportunities for larger practices to sell to national corporate aggregators began to emerge. Exiting practice owners received a premium for their equity, at multiples two to three times what a sale to an associate could provide. In 2026, most large equine referral practices are now owned by global corporations, though some private hospitals still exist.
Selling to an Associate
For small practices, selling to an associate is still the most common path. It is important to begin succession planning well before your desired year of retirement. If you have a talented associate, bringing them on as an equal partner early in their career is often the best way to ensure they will be ready to purchase your shares. A good strategy includes explaining the path to partnership once an associate begins demonstrating their value to the practice through their revenue production and understanding of practice management. Implementing their ideas and being open to change will help keep them engaged and excited about the practice’s future. Be realistic about the practice’s value. Utilize a professional for valuation, and be open to financing the sale. Prepare to negotiate with flexibility.
Selling Your Client List
Solo practitioners often sell their client list and equipment to another practice when they retire. Alternatively, they can mentor a new graduate interested in practice ownership while reducing their hours. It can be tricky to bond your clients to a new veterinarian, and the more successfully you do so, the better the outcome. It is critical to be open to new ideas and methods, willing to try new technologies, and unfailingly supportive of the new practitioner.
To sell a client list, you usually make an agreement with another practice to receive a decreasing percentage of the revenue they earn annually from your former clients for three years. In return, you transfer your clients’ records and encourage them to use the practice you are recommending. The percentages you receive from the practice’s revenue are negotiable and typically based on the EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) you have historically earned. For example, you might receive 15% of your average EBITDA over the last three years for Year 1, 10% for Year 2, and 5% for Year 3.
Final Thoughts
Regardless of the size of your practice, it is important to consider your succession plan in advance. By having a plan, you can mitigate the stress of retirement and help support the legacy of your work.
Related Reading
- The Corporatization of Equine Practice
- The Business of Practice: Retiring from Equine Practice
- Retiring From Solo Equine Practice
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