Be Prepared

Due Diligence Checklist for Practice Owners

Whether you are six months away or six years away from a sale, knowing what buyers look for gives you time to prepare. Use this interactive checklist to track your readiness.

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The Complete Checklist

Everything a buyer will ask for

Due diligence is the most document-intensive phase of any practice sale. Having these items organized in advance can shorten the process by weeks, reduce friction, and demonstrate to buyers that your practice is well-managed.

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Financial Documents

0 / 8
Federal and state tax returns (3 years)
Most recent three years of complete business tax returns, including all schedules.
Critical
Profit and Loss statements (3 years + YTD)
Monthly or quarterly P&L statements for the trailing three years plus current year-to-date.
Critical
Balance sheets (3 years + YTD)
Year-end balance sheets for the trailing three years plus current year-to-date.
Critical
Accounts receivable aging report
Current AR aging broken out by 30, 60, 90, and 120+ day buckets.
Important
Accounts payable aging report
Current AP aging report showing outstanding vendor obligations.
Important
Owner compensation detail
Complete breakdown of owner compensation: salary, distributions, personal expenses, benefits, vehicle, retirement contributions.
Critical
Debt schedule
All outstanding loans, lines of credit, equipment financing, and lease obligations with terms and balances.
Important
Capital expenditure history
Equipment purchases and facility improvements over the past 3 to 5 years.
Nice to have

Operational Documents

0 / 7
Complete staff roster with compensation
All employees: name, role, hire date, compensation, benefits, full-time or part-time status, and any employment agreements.
Critical
Equipment list with condition and age
Inventory of all major equipment, including purchase date, current condition, and estimated replacement timeline.
Important
Facility lease agreement
Current lease with all amendments, renewal terms, and landlord contact information. If you own the real estate, property records and appraisal.
Critical
Vendor contracts and agreements
All supplier agreements, distributor contracts, and service agreements (lab, imaging, waste, etc.).
Important
Standard operating procedures
Documented SOPs for key clinical and operational processes. If not formally documented, a summary of key workflows.
Nice to have
Employee handbook and HR policies
Current employee handbook, PTO policies, benefits documentation, and any outstanding HR matters.
Nice to have
Insurance policies
Professional liability, general liability, property, workers comp, and any other active insurance policies.
Important

Clinical Data

0 / 5
Active patient count and trends (3 years)
Number of unique active patients per year, defined as patients seen at least once in the trailing 18 months. Trends over 3 years.
Critical
Revenue by service category
Revenue breakdown: exams, surgery, dentistry, diagnostics, pharmacy, boarding, grooming, and other services.
Important
New client acquisition data
Number of new clients per month/quarter over the past 3 years. Source of new clients if tracked.
Important
Average transaction value trends
Average revenue per visit or transaction over the past 3 years, showing growth trajectory.
Important
Production by doctor
Revenue produced by each veterinarian. Helps assess concentration risk and doctor productivity.
Critical

Technology

0 / 5
Practice management software details
System name (AVImark, Cornerstone, eVetPractice, etc.), version, contract terms, and monthly cost.
Critical
Digital records status
What percentage of records are digital? Any remaining paper records? When did you transition to digital?
Important
Technology vendor contracts
Contracts for IT support, phone systems, internet, digital imaging, lab equipment integration, and other technology services.
Nice to have
Website and online presence
Domain ownership, hosting details, Google Business Profile access, social media account credentials, and online review platforms.
Nice to have
Data backup and security
How patient data is backed up, disaster recovery plan, and any cybersecurity measures in place.
Nice to have

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Due diligence does not have to be overwhelming. Many practice owners find that they are more prepared than they expected. If you want to discuss your readiness or have questions about what buyers look for, we are here to help.

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