The veterinary transaction market remains highly active, but sellers should carefully evaluate one increasingly common deal term before signing: the earnout.

Peter Tanella, Esq., Chair of the National Veterinary Law Group at Mandelbaum Barrett PC, authored an insightful article examining how earnouts work and the risks they can create for veterinary practice owners after a sale. Based on the practice’s future performance, earnouts can offer additional upside, but they also shift significant risk to sellers.

The article explores common earnout structures, including revenue- and EBITDA-based models, and highlights how post-closing decisions related to staffing, pricing, operations, and integration can directly impact whether sellers receive their full earnout payments.

Whether you’re considering selling your practice now or planning for a future transition, understanding the realities of earnouts is essential to protecting your interests and maximizing deal value.

Read the full article in Today’s Veterinary Business to dive deeper into Peter’s insights here.

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