New Veterinary Practice Acquisition Due Diligence

Buying a veterinary practice is one of the most significant financial decisions a veterinarian will make. Comprehensive due diligence helps identify risks, validate the value of the practice, and uncover opportunities for growth before the transaction is finalized.

A proper veterinary practice due diligence process includes a detailed review of financial statements, tax returns, production reports, collections, insurance participation, patient retention trends, staffing agreements, lease terms, equipment condition, and compliance procedures.

It also evaluates key performance indicators such as provider productivity, hygiene profitability, overhead percentages, new patient flow, and revenue concentration.

An experienced veterinary CPA advisor can help buyers assess cash flow sustainability, identify hidden liabilities, verify add-backs and adjustments, and determine whether the practice can support acquisition financing and future profitability goals.

Strategic due diligence also examines transition risks, technology systems, payer mix, and opportunities to improve operational efficiency after closing.

The goal of veterinary acquisition due diligence is not only to confirm the practice’s current value, but to ensure the buyer is making a sound long-term investment with realistic growth potential and minimized financial risk.