If you’re thinking about selling your clinic, the big question is probably how much it’s worth. Fair enough. But the one most owners forget to ask until they’re deep in it is how much it’s actually going to cost to sell.
Because yes, selling is expensive. And not just because of broker fees or lawyer bills. There are hidden costs that creep in from prep to closing and if you’re not ready for them, they’ll eat into your final number faster than you’d expect.
Here is a breakdown of what really adds up when you sell and what you can do to hold onto more of your hard-earned equity.
So where does the money go?
When you sell your clinic, most of the cost comes down to five areas
- Broker fees or commissions
- Legal and financial advisory
- Taxes
- Cleanup or prep work before you list
- Transition costs after the deal closes
You might not hit all five but almost every seller deals with three or four. Some of it’s worth it. Some of it’s just part of the game. All of it should be on your radar early.
Broker fees
If you’re using a broker which most people do expect to pay somewhere around 5 to 8 percent of the final sale price. That number depends on your deal size and how much work they’re doing.
If your practice sells for $2.5 million and your broker charges 6 percent, you’re handing over $150,000 right out of the gate. That stings but if they bring serious buyers and negotiate the right structure, it often pays for itself.
Could you skip the broker? Sure. Especially if you already know the buyer. But be ready to do the chasing, negotiating, and paperwork yourself. Most owners don’t want that extra load when they’re already running a clinic and thinking about their next chapter.
Legal and advisory costs
You’ll need a lawyer. A good one. Preferably someone who’s seen practice sales before and won’t slow the deal down trying to figure it out.
Sellers usually spend between $6,000 and $20,000 on legal help. If your deal includes real estate or seller financing, it might be on the higher end. You’ll also want a CPA or tax pro who can walk you through what happens after the check clears because you will owe taxes and it won’t be small.
Budget $2,000 to $5,000 here if you want to avoid surprises.
Taxes
This one hits hard if you’re not ready for it. Even if you sell for millions, you’re not walking away with all of it.
You are likely looking at
- Capital gains tax on the profit from the sale
- Regular income tax if part of the deal is paid as compensation
- Possibly state taxes depending on where you live and how the deal is set up
Most sellers set aside 25 to 30 percent of their sale proceeds for taxes. If your sale is structured well and your entity type is smart, you might be able to lower that. But you’ll want a professional walking you through that before it’s too late to fix anything.
Cleanup and prep costs
Before you sell, your practice has to look good. That means your books should be clean. Your EBITDA needs to be accurate. Your lease should be settled. Your equipment list should be up to date.
You might also want to invest in
- A formal valuation
- Light upgrades to the facility
- Updated staff contracts
- Cleaning up overlapping vendor agreements
None of these costs are massive on their own but together they add up. Expect to spend anywhere from $3,000 to $10,000 depending on how polished your clinic already is.
Transition costs
Even after the deal is signed, some expenses pop up. You might agree to stay on for a few months post-sale. That could mean a salary. Or maybe you offer retention bonuses to key team members to keep them on board. Some sellers even cover a small portion of the buyer’s legal fees in competitive deals.
These costs vary but it is smart to budget a few thousand dollars just in case. Not every deal needs it but when it does you will be glad you planned for it.
Putting it all together
Let’s say your clinic sells for $2.5 million. Here is a rough sketch of where some of that goes
- Broker fee at 6 percent $150,000
- Legal and CPA help $10,000 to $25,000
- Taxes $500,000 to $700,000 depending on structure
- Prep and cleanup $5,000 to $10,000
- Transition and bonus costs $3,000 to $7,000
You are looking at $650,000 to $900,000 in total selling costs. That is a big number but not uncommon. Planning for it early is what makes the whole thing feel like a win instead of a headache.
How to cut down your selling costs
You cannot avoid every expense but you can keep more of your sale price by being intentional
- Start early so you are not fixing things mid-deal
- Talk to a tax pro before you go to market
- Compare broker fee structures before signing anything
- Avoid last-minute decisions around leases or contracts
- Know what post-sale role you actually want before a buyer asks
- Structure the deal in a way that favors capital gains not income
You don’t have to be perfect but the more dialed in you are the more confident you’ll be when it’s time to negotiate.
Final word
Selling your veterinary practice can be one of the biggest financial moments of your life. And yes it comes with costs. But they do not have to feel like losses.
If you go in prepared with a clean set of books a clear plan and the right advisors backing you up the whole thing can be smoother and more profitable than you expected.
If you want a walkthrough of the full sale process from prep to closing this guide breaks it down in plain English. It is written for real owners not financial analysts and it might save you six figures in the end.