The decision to sell your veterinary practice is one of the most significant of your career. In Oklahoma, the landscape for selling is evolving, with new buyers and new opportunities creating a dynamic market. Understanding whether you are positioned for a traditional Fair Market Value sale to another veterinarian or a high-multiple Corporate Investment Value sale is the first step. Navigating this path requires careful planning and a clear strategy to protect your legacy and maximize your financial outcome.
Market Overview
The Oklahoma veterinary market is a robust and active environment, valued at over $712 million. For practice owners thinking about a transition, it is important to understand the specific local dynamics that will influence your sale.
Corporate Buyer Access
Unlike many states, Oklahoma law allows for corporate ownership of veterinary practices. This is a significant advantage. It expands your pool of potential buyers beyond individual veterinarians to include large, well-funded corporate groups and private equity investors who are actively seeking to acquire practices like yours.
The Rural and Urban Divide
The well-documented veterinarian shortage across a majority of Oklahoma counties creates a dual reality. For practices in rural or large-animal sectors, finding an individual successor can be challenging. However, for well-run, multi-doctor practices in desirable suburban areas, this same shortage can increase your strategic value to larger groups looking for a stable, staffed presence in the state.
Key Considerations
Before you dive into the market, it is helpful to assess your own practice and goals. Your reason for selling, whether it is retirement or simply a desire to offload administrative burdens, will shape the entire process. You should also take an honest look at your practice’s “salability.” Factors like annual revenue, location, and the number of full-time veterinarians on staff heavily influence which buyers will be interested and the type of valuation you can expect. For practices grossing under $700,000 or those in rural areas, for example, the strategy will look very different from a multi-doctor practice in a Tulsa suburb. Thinking about this early is key.
Market Activity
Activity in the Oklahoma market is driven by two primary buyer types, each with a different approach. Understanding the most likely path for your practice helps set realistic expectations for both value and the terms of a deal. Many owners are surprised to learn how different these paths can be.
| Feature | Private Veterinarian Sale | Corporate / Group Sale |
|---|---|---|
| Ideal Practice | Grossing ~$800k – $1.5M with 1-2 DVMs | Grossing >$1.5M with 3+ DVMs |
| Typical Value | 4x to 6x Adjusted Profit | 8x to 14x Adjusted Profit |
| Post-Sale Role | Seller often transitions out completely. | Seller usually stays for 2-3 years. |
| Real Estate | Buyer often purchases the property. | Buyer typically leases the property. |
Choosing the right strategy involves more than just the numbers. It is about matching your personal and financial goals to the right buyer.
Sale Process
A successful practice sale is a structured process, not a single event. It begins with a professional valuation to understand your practice’s true worth based on normalized profitability, not just tax returns. From there, we would prepare a confidential marketing package and approach a curated list of qualified buyers, whether they are individuals or corporate groups. This creates a competitive environment to drive the best offers. The most critical phases often come next: negotiating the letter of intent, managing the buyer’s detailed due diligence review, and finalizing complex legal agreements. Each step has pitfalls, and careful management is needed to keep the deal on track and ensure you are protected.
Valuation
One of the first questions every owner asks is, “What is my practice worth?” The answer is more science than art, and it starts with a number that is likely not on your tax return. Sophisticated buyers value your practice based on its Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization).
Here is how we determine what a buyer is truly willing to pay.
- We Calculate Your Adjusted EBITDA. We start with your stated profit and “normalize” it. This means we add back expenses a new owner would not incur. This includes things like your personal auto lease, any family members on payroll who are not active in the business, and any owner salary above the fair market rate for a veterinarian. This number shows the true cash flow of the business.
- We Apply the Right Multiple. A multiplier is then applied to your Adjusted EBITDA. This is not a guess. It is based on real-time market data for Oklahoma vet practices. This multiple is influenced by factors like your location, your reliance on a single doctor, and your practice’s growth trends. A multi-doctor practice with strong growth will receive a higher multiple than a solo practice with flat revenue.
- We Model the Final Proceeds. The final number is your Enterprise Value. From there, we subtract any practice debt and transaction fees to project what you will actually receive at closing.
Getting this number right is the foundation of a successful sale strategy.
Post-Sale Considerations
The day the deal closes is not the end of the journey. Planning for what comes next is critical to ensuring your long-term satisfaction. How the sale is structured has massive tax implications. Allocating more of the price to “goodwill” (taxed at lower capital gains rates) versus “tangible assets” (taxed at higher ordinary income rates) can change your net proceeds by tens or even hundreds of thousands of dollars. You also need a clear understanding of your role after the sale, especially in a corporate transaction where you will likely be expected to continue working for a transition period. A well-managed process protects not only your financial interests but also the future of the staff and community you have served for years.
Frequently Asked Questions
What are the main types of buyers for veterinary practices in Oklahoma?
In Oklahoma, there are two primary types of buyers for veterinary practices: private veterinarians and corporate groups. Private veterinarians typically look for practices with gross revenues around $800k to $1.5M and 1-2 doctors, while corporate buyers seek larger practices grossing over $1.5M with three or more doctors.
How is the value of a veterinary practice in Oklahoma determined?
The value is based on the practice’s Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) which normalizes profits by adding back non-essential expenses. This normalized EBITDA is then multiplied by a market-based multiple specific to the veterinary market in Oklahoma, which varies with factors like location and practice size.
What are some important considerations before selling a veterinary practice in Oklahoma?
You should assess your practice’s salability factors including annual revenue, location, number of veterinarians, and your personal goals such as retirement or reducing management duties. Practices in rural areas or smaller revenue brackets require different strategies than suburban multi-doctor practices.
What is unique about the veterinary practice market in Oklahoma regarding ownership?
Oklahoma law permits corporate ownership of veterinary practices, unlike many states. This allows the sale pool to include not only individual veterinarians but also corporate groups and private equity investors, expanding buyer options and potentially increasing practice value.
What happens after the veterinary practice sale in Oklahoma?
Post-sale, tax implications are significant and depend on how the sale price is allocated between goodwill and tangible assets. Sellers in corporate transactions often remain involved for 2-3 years to support transition. Planning your post-sale role and tax strategy is critical to maximizing satisfaction and financial outcomes.