From Outdated to Outstanding: The Risks and Rewards of Buying a Fixer-Upper Veterinary Practice
By: Max Truesdel
The idea of buying a fixer-upper veterinary practice might remind you of those popular home renovation shows—where vision, investment, and hard work transform a dated property into a dream space. Similarly, purchasing a veterinary practice in need of upgrades can be a rewarding venture, but it comes with its own set of opportunities and challenges. If you’re considering this path, here’s how to approach it wisely.
Why a Fixer-Upper Might Be Right for You
For many aspiring practice owners, a fixer-upper veterinary clinic offers a unique opportunity to enter the market at a lower cost while building a practice tailored to their vision. These practices often come with a lower upfront price tag compared to turnkey operations, making ownership more accessible.
One reason for this lower cost is the reduced competition. Many buyers are looking for fully operational, modern clinics, which means fixer-uppers often attract fewer offers. With fewer buyers vying for these opportunities, you may have more room to negotiate favorable terms and secure a deal that works for you.
One of the most appealing aspects of a fixer-upper is the chance to customize the practice to your exact needs. Whether it’s modernizing outdated equipment, refreshing the clinic’s branding, or redesigning the facility layout, you have the freedom to shape the practice into a space that truly reflects your vision and values. Additionally, these practices often have untapped potential. By introducing modern tools, efficient workflows, and effective marketing strategies, you can significantly boost profitability and client satisfaction.
Perhaps the biggest advantage is the existing client base. Unlike starting from scratch, a fixer-upper comes with a built-in roster of clients. With the right improvements and a focus on exceptional service, you can enhance their experience, build loyalty, and attract new clients—all while avoiding the challenges of building a practice from the ground up.
What to Watch Out For
While the opportunities are compelling, buying a fixer-upper practice isn’t without its risks. One of the most common pitfalls is underestimating the costs involved. Renovating a practice can quickly become expensive, with equipment upgrades, facility repairs, and software investments adding up. Before committing, it’s essential to conduct a thorough financial analysis and consult with experts to understand the full scope of costs.
Another potential challenge is structural or zoning issues. If the building requires major repairs or isn’t zoned for veterinary use, you could face unexpected expenses and delays. Always have the facility inspected and verify zoning regulations before finalizing the purchase.
Reputation can also be a hurdle. If the practice has a history of poor service or outdated practices, rebuilding trust with clients will take time. Research online reviews, talk to current clients, and develop a plan to address any negative perceptions.
Staffing concerns are another factor to consider. A struggling practice may have overworked employees, outdated training, or high turnover. Assess the current team’s strengths and weaknesses, and plan for training or hiring to align with your vision.
Finally, rapid or drastic changes can unsettle long-time clients. A thoughtful transition plan—with clear communication and gradual improvements—can help retain their trust and loyalty during the transformation.
Navigating the Process Successfully
To turn a fixer-upper practice into a thriving business, careful planning and execution are key. Start by performing thorough due diligence. Review financial records, client retention rates, and facility conditions. Partnering with an experienced veterinary practice broker can provide valuable insights into the practice’s strengths and weaknesses.
Once you’ve assessed the practice, create a detailed renovation and investment plan. Identify immediate needs versus long-term goals, and prioritize upgrades that improve patient care and client experience. For example, modernizing medical equipment or refreshing the waiting area can have an immediate impact.
Securing financing is another critical step. Account for the purchase price, renovation costs, and working capital to cover expenses during the transition. Work with a lender familiar with veterinary practice financing to ensure you have the resources needed to succeed.
Engaging the current team and clients is equally important. Involve staff in the transition process, listen to their feedback, and address their concerns. Clear communication and a shared vision can help build trust and buy-in. Similarly, keep clients informed about the changes and reassure them that their care remains a top priority.
Finally, focus on marketing and branding to showcase your revitalized practice. Update your website, social media, and local listings to highlight improvements and attract new clients. A strong digital presence can help position your practice as a modern, client-focused destination.
Final Thoughts
Buying a fixer-upper veterinary practice can be a rewarding investment if approached strategically. With careful planning, the right financial approach, and a commitment to revitalization, you can transform an underperforming clinic into a thriving, modern practice. Much like the home renovation shows we love, success comes from vision, persistence, and a well-executed plan.
If you’re considering this path, Omni Practice Group can help you navigate the process, from valuation to transition strategy, ensuring your dream practice becomes a reality.
Read MoreGiving Back: Supporting Communities Near and Far
At Omni Practice Group, making a positive impact is at the heart of our mission. By partnering with incredible organizations across various causes, we strive to uplift communities, protect animals, and inspire positive change. Through financial contributions and hands-on involvement, we’re committed to fostering a brighter future.
Here’s how we give back:
Each Thanksgiving, we join the Eastside Basket Brigade in providing holiday meals to families in need. Since 2012, this initiative has grown from feeding 50 families to serving over 200 families annually, reaching up to 1,000 individuals. With 100% of donations going directly to families, the program ensures that every meal is a gesture of care and community spirit.
We proudly support Everyone for Veterans (E4V), a nonprofit empowering U.S. veterans through critical resources and free dental care. Founded by Dr. Theresa Cheng, E4V connects veterans and their spouses to a network of pro-bono dental professionals. Through this partnership, we contribute to improving the lives of those who have selflessly served our nation.
Atlas Free works to end sexual exploitation by supporting anti-trafficking initiatives worldwide. With over a decade of experience, they collaborate with local organizations to provide resources for aftercare, prevention, and intervention programs. Their efforts have positively impacted more than one million individuals.
Climb for Captives partners with Atlas Free to raise funds for the fight against human trafficking. This platform empowers individuals to turn outdoor adventures into fundraisers. Participants have raised over $1.5 million to support survivors.
Animal welfare remains close to our hearts. Our contributions to the American Society for the Prevention of Cruelty to Animals (ASPCA) and the Humane Society for Tacoma & Pierce County provide life-saving care for animals. These organizations rescue, rehabilitate, and rehome thousands of animals every year, fostering compassion within our communities.
In our own backyard, we support the Resilient Project, a nonprofit mentoring at-risk youth in Washington State. By empowering children to rise above adversity, this program helps them discover their potential and develop the confidence needed to succeed.
We’re passionate about protecting nature for future generations. Through the World Wildlife Fund, we sponsor an adopted elephant and support global efforts to conserve wildlife habitats, address climate change, and rebuild ecosystems.
Oral Cancer Foundation
The Oral Cancer Foundation is dedicated to reducing the incidence of oral and oropharyngeal cancers. By funding research, raising awareness, and supporting patients, they help improve health outcomes. Omni’s contributions align with their mission to promote early detection and treatment.
Homelessness is a growing crisis, and we’re proud to partner with Seattle’s Union Gospel Mission. Their programs address root causes and provide lasting solutions to homelessness by offering urgent care, long-term recovery services, and a message of hope and love.
Additional Causes We Support
Omni also extends support to local and state veterinary, dental, and chiropractic societies across our nation that enrich communities and address local needs. We are committed to fostering positive impacts and supporting initiatives that strengthen our professional communities.
Join Us in Making a Difference
At Omni, giving back is more than a responsibility- it’s a privilege. By standing with these remarkable organizations, we’re honored to play a small part in their transformative work.
Together, we can build stronger, more compassionate communities.
Read MoreGiving Back: Supporting Communities Near and Far
At Omni Practice Group, making a positive impact is at the heart of our mission. By partnering with incredible organizations across various causes, we strive to uplift communities, protect animals, and inspire positive change. Through financial contributions and hands-on involvement, we’re committed to fostering a brighter future.
Here’s how we give back:
Each Thanksgiving, we join the Eastside Basket Brigade in providing holiday meals to families in need. Since 2012, this initiative has grown from feeding 50 families to serving over 200 families annually, reaching up to 1,000 individuals. With 100% of donations going directly to families, the program ensures that every meal is a gesture of care and community spirit.
We proudly support Everyone for Veterans (E4V), a nonprofit empowering U.S. veterans through critical resources and free dental care. Founded by Dr. Theresa Cheng, E4V connects veterans and their spouses to a network of pro-bono dental professionals. Through this partnership, we contribute to improving the lives of those who have selflessly served our nation.
Atlas Free works to end sexual exploitation by supporting anti-trafficking initiatives worldwide. With over a decade of experience, they collaborate with local organizations to provide resources for aftercare, prevention, and intervention programs. Their efforts have positively impacted more than one million individuals.
Climb for Captives partners with Atlas Free to raise funds for the fight against human trafficking. This platform empowers individuals to turn outdoor adventures into fundraisers. Participants have raised over $1.5 million to support survivors.
Animal welfare remains close to our hearts. Our contributions to the American Society for the Prevention of Cruelty to Animals (ASPCA) and the Humane Society for Tacoma & Pierce County provide life-saving care for animals. These organizations rescue, rehabilitate, and rehome thousands of animals every year, fostering compassion within our communities.
In our own backyard, we support the Resilient Project, a nonprofit mentoring at-risk youth in Washington State. By empowering children to rise above adversity, this program helps them discover their potential and develop the confidence needed to succeed.
We’re passionate about protecting nature for future generations. Through the World Wildlife Fund, we sponsor an adopted elephant and support global efforts to conserve wildlife habitats, address climate change, and rebuild ecosystems.
Oral Cancer Foundation
The Oral Cancer Foundation is dedicated to reducing the incidence of oral and oropharyngeal cancers. By funding research, raising awareness, and supporting patients, they help improve health outcomes. Omni’s contributions align with their mission to promote early detection and treatment.
Homelessness is a growing crisis, and we’re proud to partner with Seattle’s Union Gospel Mission. Their programs address root causes and provide lasting solutions to homelessness by offering urgent care, long-term recovery services, and a message of hope and love.
Additional Causes We Support
Omni also extends support to local and state dental, veterinary, and chiropractic societies across our nation that enrich communities and address local needs. We are committed to fostering positive impacts and supporting initiatives that strengthen our professional communities.
Join Us in Making a Difference
At Omni, giving back is more than a responsibility- it’s a privilege. By standing with these remarkable organizations, we’re honored to play a small part in their transformative work.
Together, we can build stronger, more compassionate communities.
Read More5 Points to Ponder About a Transition in the New Year
We have been involved in practice transitions since the mid-1990’s. Our company has sold over 500 practices in 12 different states. Doctors have sold their practices for numerous reasons ranging from just being tired of owning and managing a practice to severe health issues forcing them to sell.
In all these years and transactions we have performed, not one doctor has come up to us and said “I wish I wouldn’t have sold my practice so soon”, or “I wish I still could own my practice”. In fact, most doctors whom we talk with months, or even years after selling their practice say “selling was one of the smartest decisions I made, I wish I would have sold much earlier”.
So, how do you know when is a good time to sell? Here are a few things to consider:
- The Current Sales Market – Is it a buyer’s or seller’s market? A buyer’s market is when there are a lot of practices for sale, interest rates are average to high and there is low demand. Currently, as of today, we are in a seller’s market. Interest rates are quite low. The economy is doing well. The demand for practices is high. Doctors and groups looking for practices producing over $1,000,000 per year is very high. That is attributed to the number of corporate buyers in the marketplace. The demand by corporate and other buyers is driving up the price of practices. In a few years, this will change, and prices will drop, possibly significantly. You want to sell your practice in a hot seller’s market versus a buyer’s market. Even if you sell 5 too early, you will make it up in the sales price you are going to receive versus the income you would make as an owner.
- Being Forced to Sell – There are certain things that are inevitable in life. Getting older is one of them. And that includes all the aches, pains and other health issues that go along with it. We have seen doctor after doctor, every year, sell their practice because of back, neck, hand, or eye site issues to name a few. We have also seen more serious health issues that forced a doctor to sell. Cancer in all its’ forms and other diseases can happen when you least expect it. There have been several doctors who every year told me they were ready to sell. Only when they were diagnosed with cancer did they decide to sell. One of them sold their practice and then passed away the next day. We have story after story of doctors who sold their practice expecting to enjoy retirement with their family only to report back that they or their spouse got sick, or worse yet, passed away. Enjoying retirement and life is something we should all have the opportunity to do. Selling when it’s the right time ensures us of this.
- Harvesting the Equity in Your Practice – This is one of our favorite strategies in selling a practice. And, selling in a seller’s market with higher practice values make it even a smarter decision. When you started or bought your practice, you probably took out a loan with the bank. As you have been in practice, you have paid your loan down and have built up your practice. The difference between the potential sales price of your practice and any debt you may have on your practice is called equity. Many doctors may have hundreds of thousands of dollars, if not millions of dollars, in equity. This equity does not do anything for you while you still have the practice. You cannot receive this money unless you harvest the equity. You do this by selling your practice. You put the hundreds of thousands, or million dollars into the bank, invest it, or pay off your house. Whatever you would like to do. You can then work back in the practice you just sold, or work in another practice. Or, you can even go buy a new practice, build it up and harvest even more equity. It’s a beautiful thing.
- And now for Something Completely Different – That was for the Monty Python fans out there. At times we all get tired of doing the same old thing, day in and day out. We are just tired of the monotony, tired of staff, tired of the patients and just ready to do something completely different. We have doctors who are ready to change course completely. We have had doctors sell and tell me they want to be a real estate agent, a barista, or they are going to run a surf shop in Hawaii. If you have reached that point and are tired of the same old routine, life is short, it is time to take action and do something different. You can always come back years later if you decide you have had a long enough break and are ready to return back to practice.
- Annual Production is Decreasing – For fun, go back and take a look at your last five years profit and loss statement or tax returns. Have your annual revenues gone down year after year over the past 5 years? How’s your income? Has it also gone done year after year? We frequently see this as practice owners start to get a bit tired towards the end of their career. They slow down their production, but the overhead stays the same, so their income goes down even faster. They then decide to sell and think that the price should be based on what the practice used to do, before the slide in production. It does not work that way. A practice’s value is what it is doing today, not five years ago when it was double the revenue. Using the Equity Harvesting strategy in number 3 above, would have given these doctors hundreds of thousands of additional dollars.
We are imparting this knowledge to you, not to get you to sell your practice as soon as possible. We are simply giving you some things to think about and passing on to you some wisdom from prior experiences of other doctors. Thinking about these five things in addition to taking action may provide you more time with your family if you sell a few years earlier. It may also give you more money to have a happy retirement.
Look at each one of the five items above and ask yourself if you want to sell your practice when you have to, or when you want to? As always, call us if you would like a free consultation.
Read MoreA Tale of Two Vets
The following is a story about two veterinarians who had dreams of owning their own practice. While the story may seem a bit farfetched, it is based on true events. In fact, we have seen this story multiple times in today’s environment. Maybe this happened to you?
Shawn and Lilly graduated from the same veterinary school in 2010. They were good friends and always enjoyed talking about their plans after graduating from Veterinary school. Shawn had dreams of owning a practice in his hometown of Yakima, WA. Lilly had a goal of opening a large practice in Portland, Oregon.
Upon graduation, both had lined up associate veterinary jobs in their hometowns. Shawn worked for a veterinary clinic owned by a solo/single veterinarian. Lilly got an associate job working for Happy Pet, a corporate-owned practice with 25 locations on the West Coast. Shawn enjoyed his job working in his hometown. The doctor that owned his practice was a nice man, gave back to his community, and was fairly generous with Shawn as well. Lilly was not as happy as Shawn. Her corporate job required her to work weekends. She also worked on a lot of reptiles as the manager and one of the techs, whom they knew didn’t like her, also knew she didn’t enjoy working on reptiles. Yet, Lilly continued to go to work every day in the practice with a grin on her face. A fake grin, but a grin, nonetheless.
After three years, Lilly was asked to take the emergency calls for the rest of the summer. This was after Lilly had planned and paid for a two-week vacation in the Bahamas. Lilly went home and decided, enough is enough. “I’m going to buy my own practice, work when I want to work, and on what animals I want to work on.”
Lilly immediately went online and searched for practices for sale in Portland. Happy Pet wasn’t smart enough to have her sign a non-compete agreement, so she could buy a practice anywhere. Lilly saw three potential practices listed with Omni Practice Group. She called her local broker. They were very helpful and explained the pros and cons of each practice. They showed her each of the practices. Lilly loved one that was across town from Happy Pet. The broker represented the seller but still helped Lilly with due diligence, obtain financing, and referred her to a good veterinary attorney.
Within a few days of closing on the sale of her practice, Lilly’s love for veterinarian work returned. She loved seeing the pets that came in. She adored her staff. There was an assistant that mutually parted ways, but Lilly hired a new assistant who was friendly and amazing. Lilly also adjusted the hours to work a schedule that allowed her to also have a personal life. After a couple of years, the practice was doing so well, that she hired an associate in her practice and expanded hours. The associate actually enjoyed working weekends! Lilly ended up paying off her practice loan of $500,000 in under 5 years.
Meanwhile back in Yakima, Shawn is content working his job for the owner-veterinarian. Sure, the owner has told him he would sell him the practice “when that time came”. But the owner is only 52, so it may be another 10 or 15 years. Shawn had an opportunity to purchase another practice that came up for sale 7 miles away from the practice. But the owner was smarter than Happy Pet. The owner had Shawn sign a 20 mile and 5-year non-compete agreement. Ouch! Shawn’s salary when he started in Yakima was $60,000 per year. Over the past 5 years, he had worked up to $70,000 per year with medical benefits! Shawn, of course, had no equity in the practice.
At the 10-year class reunion, Shawn and Lilly ran into each other. Lilly asked Shawn how things were going? Had he achieved his goal of practice ownership in Yakima? Shawn told her, “No, but I’m hoping to buy the practice I’m currently in someday.” He told her that the seller had promised him he would sell it to him when he retires.
Shawn asked Lilly if she had purchased a practice in Portland? Lilly lit up. “Yes! I purchased a practice 7 years ago. I paid it off in 5 years. I have an associate working for me that enjoys doing those things that I don’t like. I have an amazing staff that we get along so well that we occasionally hang out together outside of work. I was recently offered $2.5 million for my practice from a corporate buyer. I’m not sure I’m going to accept the offer though. I’m taking home $175,000 per year, I’m loving what I do, love my staff and associate, it’s what I dreamed of when I wanted to own my own clinic…” Lilly quickly shut up as she realized she was sounding like a braggart and felt somewhat sorry for Shawn. She told Shawn that she would be happy to introduce him to her broker, who would help him find a practice of his own. Shawn said he would think about it.
Fast forward three more years. Lilly receives a “Just Sold” postcard stating that the practice in Yakima that Shawn worked at and had been told he could buy when the seller was instead sold to a corporate group practice. To make matters worse, the corporate buyer was Happy Pet – the same group that Lilly had worked for and didn’t enjoy their management style. Poor Shawn, Lilly thought. If only he would have taken me up on my offer to meet my broker at Omni. He would have gotten him into a practice right away and Shawn would be enjoying practice ownership.
Don’t let this story happen to you. Fulfill your dream of practice ownership. Give Omni a call today for a free practice purchase consultation.