If you work in a veterinary practice or in the pet industry or in a business that supplies goods or services to the industry and you have something to say - why not become a 'Guest Blogger'?
For more information click here to read our: Guidelines for Guest Bloggers
The influx of well-funded corporate aggregators (corporate groups that buy and consolidate veterinary clinics) into the Australian veterinary sector has provided practice owners with highly attractive exit options and opportunities. However, securing a strong sale price (often expressed as an EBITDA multiple – a common way to value practices based on profitability) is only half the battle. The journey from accepting an offer to final settlement, and the operational reality that follows, can often be a frustrating and disjointed experience if not managed correctly.
Before you sign on the dotted line, it is critical to look beyond the purchase price and evaluate what the corporate aggregator is actually offering in terms of process, support, and ongoing value.
One of the most common complaints we see in corporate acquisitions is an unwieldy, elongated due diligence (DD) process – the detailed financial and operational review that takes place before a sale is finalised. Often, aggregators hand the reins entirely over to their legal teams. While thoroughness is necessary, we frequently encounter legal firms that lack a fundamental understanding of veterinary clinics actually operate.
Instead of applying commercial practicality to a suburban clinic, these firms can treat the acquisition as a massive multinational corporate merger. This results in endless requests for irrelevant data, vendor fatigue, and significant delays.
Furthermore, administrative bottlenecks related to the appropriate transition of team members and the assignment of the premises lease are notorious for stalling deals.
This matters because delays and poor coordination at this stage can put your deal and your timeline at risk.
Vendors must be acutely aware of the processes involved. You are not just a passenger in this transaction; you have the right to demand clarity.
This is where having an experienced broker like RWC Business Sales stepping in is invaluable. We advocate for our vendors by demanding a reasonable timeline and a strict checklist matrix from the purchaser from day one. You need to know exactly who within the purchaser’s group is responsible for what tasks, what the milestones are, and how roadblocks (like lease assignments) will be actively managed to ensure a timely closure.
A successful sale does not just mean the funds have cleared, it means your clinic continues to operate smoothly under a new banner. Practice owners must determine the actual capability of the corporate entity to provide quality services and tangible value-adds on an ongoing basis, which can be facilitated via an experienced broker.
To assess this, you need concrete answers regarding their post sale operational structure. Crucial questions to ask the aggregator include:
Financial Management: Who is directly responsible for accounts receivable, accounts payable, and the timely assembly of monthly financial statements?
Growth and Outreach: Who will be responsible for driving marketing and promotional activities for the clinic?
People and Culture: Who handles human resource related issues, including the critical task of ongoing veterinary recruitment?
Technology: How will Information Technology (IT) requirements, software transitions, and tech support be handled?
Infrastructure: How will future capital works requirements (such as clinic renovations or major equipment upgrades) be assessed and processed?
Economies of Scale: What specific procurement efficiencies and supply chain discounts will be available to the clinic for being part of a larger group?
Career Progression: What structured training and development programmes will be available to both you (if you are staying on) and your clinical team?
This is where many sellers realise the real difference between corporate buyers and where early assumptions can fall apart.
Selling to an aggregator should ultimately make your clinic stronger and, if you are remaining post sale, make your life easier.
In reality, that outcome isn’t determined by the purchase price alone. It comes down to how the process is managed and what your clinic looks like six months after the sale. If the corporate group cannot provide clear, commercially practical answers about how they will support your practice through due diligence and beyond, the price on offer may not be worth the operational headache.
If you are exploring your exit options and want to ensure you are matched with an aggregator capable of delivering a smooth transition and real, ongoing value, contact RWC Business Sales to discuss your strategy.
Peter is an experienced business executive in the mergers and acquisitions space who has been the primary founder of two successful national dental aggregation entities. With extensive experience in both dental and health related organisations. Peter knows how to create and utilise innovative tools and mechanisms to promote and foster growth and generate optimal outcomes.
Connect with Peter:
Australia is experiencing a national shortage of veterinarians, and many veterinary practices are looking overseas to fill critical workforce gaps. Before an overseas-qualified veterinarian can work in Australia, one key question needs to be answered: Is their...
