Buying a Veterinary Practice in California
Veterinary practices are among the most active segments of the healthcare transaction market, and buying a hospital is a major investment that rewards careful legal planning. An established practice offers immediate revenue, a loyal client base, and trained staff — but the deal documents must account for the issues unique to veterinary medicine.
Mostofi Law Group represents buyers of veterinary practices and hospitals across California. We guide you from the letter of intent through due diligence, the purchase agreement, and closing, with attention to the details that general business counsel often overlooks.
Veterinary deals raise questions dental and medical deals do not: controlled-substance registrations, DEA compliance, kennel and boarding operations, equipment liens, and associate veterinarian employment agreements. We build these into your due diligence and your purchase agreement from the start.
Whether you are an individual veterinarian buying your first hospital, a group expanding, or an investor entering the space, we structure the acquisition to protect your investment and set the practice up for growth.
What we handle in a veterinary practice purchase:
- Drafting and negotiating the letter of intent (LOI)
- Due diligence: financials, licenses, DEA and controlled-substance compliance, contracts, employment matters, and equipment liens
- Asset vs. stock purchase structuring
- Negotiating the asset purchase agreement and ancillary documents
- Real estate purchase or lease negotiation for the hospital facility
- Coordination with lenders, CPAs, and brokers
- Associate veterinarian and staff employment agreements
- Seller transition agreements and non-compete provisions
Buying a veterinary hospital? Get counsel involved before you sign the letter of intent. Call Mostofi Law Group at 1-866-247-9420 to discuss your acquisition.
Frequently Asked Questions
What licenses and registrations transfer with a veterinary practice?
The facility's business licenses and the seller's professional licenses do not automatically transfer — you will need your own veterinary license, premise permit, and DEA registration. Controlled-substance inventory requires special handling at closing. We build a licensing transition checklist into every deal timeline.
Should I structure the purchase as an asset deal or a stock deal?
Most veterinary hospital acquisitions are asset purchases, which let you select the assets you want and generally avoid the seller's unknown liabilities. Stock purchases are less common but occasionally make sense. We will recommend the structure that best fits your goals and risk tolerance.
How do I evaluate the practice's equipment?
Review equipment age, condition, maintenance records, and any liens or leases on major items like digital x-ray, ultrasound, and lab equipment. Equipment value should be reflected accurately in the purchase price allocation. We verify lien status during due diligence so you do not inherit someone else's debt.
What happens to the practice's employees when I buy?
In an asset purchase, employees are typically terminated by the seller and rehired by the buyer, which raises questions about benefits continuity, accrued time off, and non-competes. We draft the employment provisions to protect you and to treat the team fairly, which helps with retention.
How long does a veterinary practice purchase take?
Most deals close 60 to 120 days after the LOI is signed. Financing, real estate, DEA and licensing transitions, and lease negotiations are the usual variables. We manage the timeline and keep all parties moving toward closing.
Do I need to buy the real estate with the hospital?
Not necessarily — many buyers lease the facility from the seller or a third party. Owning the real estate can be a good investment, but it also ties up capital. We help you evaluate both options and negotiate either a purchase or a protective long-term lease.