Taking over a veterinary practice: how to analyse the patient base?
Introduction
Taking over a veterinary practice represents a significant investment, often several hundred thousand francs. Unlike other types of businesses, the value of a veterinary clinic rests essentially on an intangible asset: its patient base.
Medical equipment depreciates, premises can be rented, but it is the animals regularly monitored and their loyal owners who generate recurring turnover. A stable and well-maintained patient base guarantees the practice's future profitability.
Yet many buyers focus solely on overall accounting figures, without analysing in depth the composition and quality of this client base. How many animals are actually active? What is their distribution between dogs, cats and exotic pets? Will the owners return after the current veterinarian's departure?
This guide offers you a structured method to analyse a veterinary practice's patient base before takeover. You will discover the essential quantitative and qualitative indicators, the documents to require, and how to assess the actual transferability of this clientele. An approach similar to that recommended for taking over a medical practice, adapted to the specificities of the veterinary sector.
📌 Summary (TL;DR)
The patient base represents the main asset of a veterinary practice. Before the takeover, analyse the quantitative indicators (number of active animals, distribution by species, frequency of visits) and qualitative ones (loyalty, care contracts, concentration). Then assess transferability based on the role of the outgoing veterinarian, location and the existing team. Require detailed management documents and engage an expert to secure your investment.
📚 Table of contents
Why the patient base is the main asset of a veterinary practice
The patient base represents 60 to 80% of a veterinary practice's value. Unlike equipment which depreciates, it generates recurring and predictable income.
Pet owners develop a strong attachment to their veterinarian. This loyalty constitutes a strategic asset during a takeover.
Three dimensions determine the real value: volume (number of animals), quality (loyalty and recurrence) and transferability (ability to retain clients after the takeover).
A rigorous valuation of these criteria helps avoid unpleasant surprises and negotiate a fair price.
The quantitative indicators to verify
Numerical data constitutes the basis of any objective analysis. It allows you to measure the veterinary practice's real potential and identify trends.
Ask the seller for precise and documented information covering at least the last three years. These figures must be verifiable via management systems or annual accounts.
Number of active animals and evolution
An active animal has consulted within the last 12 to 18 months. This criterion distinguishes the actual patient base from former inactive clients.
Analyse the evolution over three years: growth, stagnation or decline. Regular progression indicates a dynamic practice.
Be alert in case of sudden decrease or group departures. These signals may reveal problems with quality, reputation or increased competition in the area.
Distribution by type of animals
The patient base composition determines the required skills and necessary equipment. Dogs and cats generally represent 80 to 90% of consultations.
Exotic pets (rodents, reptiles, birds) require specific knowledge. Farm animals involve travel and adapted equipment.
An overly specialised practice limits development potential. Favour a balanced distribution that matches your skills.
Frequency and recurrence of visits
Calculate the average number of visits per animal per year. A high ratio (3 to 4 visits) indicates a patient base engaged in preventive care.
Distinguish regular consultations (vaccinations, check-ups, descaling) from one-off emergencies. Preventive procedures generate more predictable turnover and higher margins.
Identify seasonality: peaks during holiday periods for boarding, increased consultations in spring for parasites.
Analysing the quality and loyalty of the patient base
Beyond the figures, the patient base quality determines its real value and its ability to generate stable income after the takeover.
A loyal and diversified patient base reduces risks and facilitates the transition. These qualitative aspects directly influence the sale price and development prospects.
Seniority and retention rate
Check how long clients have been registered. A retention rate above 80% over three years demonstrates a loyal and satisfied patient base.
Identify long-standing clients who might follow the retiring veterinarian. Their departure can significantly impact turnover.
This analysis is similar to that of a medical practice: the personal relationship strongly influences transferability.
Care contracts and subscriptions
Recurring contracts (pet insurance, preventive health plans, subscription packages) guarantee stable monthly income and increase loyalty.
Analyse the number of active contracts, their average value and their renewal rate. These elements secure post-takeover cash flow.
Check their contractual transferability. As with a hair salon, subscriptions constitute a valuable asset during the sale.
Client concentration
Calculate the weight of the 10 or 20 largest clients in total turnover. Excessive concentration constitutes a major risk.
A breeder or shelter representing 40% of turnover creates dangerous dependency. Its loss can compromise the practice's profitability.
Favour a diversified patient base of private individuals. This structure reduces volatility and facilitates progressive development after the takeover.
Assessing the patient base transferability
Transferability determines whether clients will remain after your arrival. It is the most critical and most difficult factor to assess when taking over a veterinary practice.
Several elements influence this transition: the seller's support, location, competition and continuity of the existing team.
The role of the outgoing veterinarian
Negotiate a transition period of at least 3 to 6 months. The seller must personally introduce you to clients and explicitly recommend your expertise.
Their presence reassures pet owners and facilitates the transfer of trust. Specify the precise terms (duration, remuneration, schedule) in the sale contract.
As with key employees, the seller's involvement during the transition is crucial for the takeover's success.
Location and competition
Analyse the catchment area: urban, rural or mixed practice. Each configuration presents specific advantages and constraints.
Identify direct competition within a 5 to 10 km radius. A practice in a rural area with little competition benefits from a more captive patient base.
Check accessibility (transport, parking) and visibility. These factors influence the ability to attract new clients after the takeover.
Existing team and continuity
Veterinary assistants and administrative staff play a key role in retention. They know the animals, their history and the owners.
Check their intention to remain after the takeover. Their simultaneous departure can cause client loss and complicate the transition.
Meet them individually before signing. Their motivation and commitment to the project reassure the patient base and facilitate your integration.
The documents to require before the takeover
Supporting documents allow you to validate the seller's statements and objectify your analysis. They constitute the basis of transparent negotiation.
Require precise, recent and verifiable documents. Any refusal or imprecision should alert you to the reliability of the information provided.
Management and accounting data
Request an anonymised list of the patient base with the date of last visit, consultation history over three years and detailed turnover by type of service.
Require audited annual accounts for the last three financial years. These documents allow you to cross-reference statements with facts.
A valuation tool or support from an expert partner facilitates the analysis of this complex data.
Contracts and commitments
Obtain copies of pet insurance contracts, agreements with breeders or shelters, commercial lease, and staff employment contracts.
Check termination clauses, transfer conditions and any penalties. Some contracts may not be automatically transferable.
Identify ongoing financial commitments: loans, equipment leasing, maintenance contracts. These elements impact post-takeover cash flow.
Engaging an expert to secure the takeover
Support from specialists (M&A experts, fiduciaries specialising in animal health, lawyers) secures your analysis and negotiation.
They audit the patient base, validate the valuation and negotiate guarantee clauses. Their expertise reduces risks and optimises takeover conditions.
Leez provides access to a network of qualified partners without obligation. Veterinary practices are also available on the platform to identify concrete opportunities.
The patient base represents the heart of a veterinary practice's value. Before committing to a takeover, you must analyse in depth the quantitative indicators (number of active animals, distribution by type, frequency of visits) and qualitative ones (retention rate, care contracts, concentration). Transferability largely depends on the role of the outgoing veterinarian, the quality of the existing team and the local competitive context.
Require detailed management documents, accounting data over 3 to 5 years, and all current contracts. Do not hesitate to engage an expert in the veterinary sector to validate your analyses and secure your decision.
Are you a veterinarian looking for a practice to take over in Switzerland? Discover the businesses available on Leez and access verified listings in the healthcare sector. Do you wish to sell your practice? Estimate its value free of charge and benefit from visibility amongst qualified buyers.
