Financing Options When Selling and Buying a Practice

There are many issues to consider when selling a veterinary practice.

According to veterinary accountant Gary I. Glassman, CPA, “You don’t need to be the mortgage holder 

when the practice is sold. When it comes to the sale of a partial interest in the hospital, arranging financing can be tough. 

However, when it comes to the sale of the entire practice, many financing options are available. When one considers the sale 

of their practice, the significant price tag that might be associated with it should not be a stumbling block to the sale. Lenders 

will, in many cases, lend for a practice purchase of $1 or $2 million. \The major criterion is that cash flow from the practice

can support the loan over a reasonable period of time, which is defined as somewhere between 7 and 10 years. Many sellers

have less than a 20% down payment usually required for conventional financing, but the availability of SBA loans and lenders

who specialize in lending to the veterinary profession will make loans for the right deal. Many of the veterinary boutique lenders 

will make practice loans with no money down if the purchaser has good credit. Real estate added to the transaction can even 

make it easier.”

Call Gary to discuss any issues related to selling a veterinary practice at 203-468-8133.