Closing the sale of your veterinary practice is an exciting milestone, but it also comes with a number of important details that need attention before ownership officially transfers. Proper preparation helps ensure a smooth transition for you, your employees, your clients, and the buyer. This checklist outlines typical key tasks to complete before closing, from notifying vendors and transferring utilities to organizing records and finalizing employee matters. Taking these steps early can help prevent delays, reduce last-minute stress, and create a positive experience for everyone involved in the transaction.
As with any transaction, there will be variables dependent on negotiations between the involved parties. Be sure to consult your unique contract before taking action.
- Vendors: Contact all drug and supply vendors and have them close your accounts, effective on the date negotiated by both parties (often the closing date). Keep a list of names and numbers to give the buyer so they can more easily open new accounts.
- Utilities: Contact gas, electricity, water, sewer, trash, phone, etc. companies and transfer accounts to buyer. You may be eligible to have your deposits refunded, as the buyer will put up their own deposits. Please have a list ready for the buyer to keep things moving quickly.
- Suppliers: Once a closing date has been set, contact the companies providing you drugs and medical supplies and give them the date as the last day to accept orders on your account(s).
- Service providers: Keep a running list of any services you use—pest control, medical waste pick-up, advertising, the people that deliver your bottled water/coffee or buff your floors. This is a nice gesture and will be most helpful to the buyer. Be sure to include contact information.
- Put together a running list of any licenses and/or permits you have. This could be invaluable as it could prevent the buyer from overlooking a key component that could delay closing.
- Accounts Receivable: Go through your accounts receivable and clean it up. Make an extraordinary effort to collect as much as possible prior to closing and do not add to the list.
- Software: Contact computer software vendors (e.g., payroll and practice management software) to have the license(s) transferred to the buyer.
- Charge card machine: Contact your bank and prepare to close this account.
- Controlled drugs: A proper accounting must be done. These can be transferred to the buyer with the correspondence to the DEA.
- Employee wages: Settle with employees, just prior to closing, any outstanding wages, vacation pay, and sick pay owed. When the time comes to tell your employees, take extra care to reassure them. The buyer wants and needs them. They are the buyer’s link to the existing clientele.
- Employee records: A copy of the personnel records for the current employees will need to be made for the new owner. This includes reviews, reprimands and other non-government documents (not payroll forms).
- Signing documents: Make appointment with closing agent to sign. The signing does not need to be done on the day of closing. We recommend that it be done prior.
- Departure announcement: Consider hosting a reception or sending a message to your clients announcing the ownership change. These preparations should be developed and approved jointly by seller and buyer.
- Close out books: Be sure to close out your digital books as though it is a year-end. Depending on whether the seller or buyer owns the practice the day of closing, you’ll do this either prior to or at the end of the closing day.
- After closing, give the Seller’s Settlement Statement to your CPA along with the allocation of the practice sale price.
As closing day approaches, having these items completed will help make the transfer of ownership as seamless as possible. For necessary documentation, your Simmons broker can help by providing templates, examples, and best practices.
While every practice sale is unique, staying organized and communicating proactively with vendors, employees, advisors, and the buyer can go a long way toward ensuring a successful transition. If questions arise along the way, don’t hesitate to lean on your transaction team for guidance. The goal is not only to close the sale but also to set up the new owner—and the practice you’ve built—for continued success.
Questions? We’re here to help. Contact Simmons & Associates for assistance throughout the selling and closing process.
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