When veterinary partnerships work (and when they don’t)

For a growing segment of veterinarians, partnership feels like the logical next step. You find someone you trust, enjoy working with, and share a vision for the future with. Ownership allows you to divide responsibilities, share risk, and potentially build a stronger practice together.

On paper, it makes perfect sense.

The challenge is that owning a business with someone is very different from working alongside them. Some veterinary partnerships thrive for decades, while others slowly unravel due to differences in priorities, work ethic, financial decisions, or long-term goals.

The difference usually isn’t clinical skill. It’s whether the owners took the time to think through the partnership before signing the paperwork.

The biggest mistake veterinarians make

Many veterinarians enter a partnership based on trust. Far fewer spend time discussing the issues that often lead to conflict later.

Have you discussed your expectations around growth, debt, compensation, work schedules, or exit planning? What happens if one owner wants to expand the practice but another prefers stability? What if one partner wants to sell in 10 years and the other plans to work for 20?

Without clear conversations up front, partners often discover they were operating under very different assumptions.

Ownership doesn’t always stay equal

One of the most common partnership challenges occurs when ownership percentages remain the same while contributions change over time.

A practice may begin with 2 equal owners. Years later, one owner may be managing employees, overseeing finances, recruiting doctors, and carrying a larger share of the leadership responsibilities. The other may have reduced their schedule or stepped away from many operational duties.

Neither situation is necessarily wrong, but it often creates tension when expectations haven’t been clearly defined.

The question isn’t whether contributions will change over time. They usually do, and the real question is how the partners will address those changes when they occur.

More owners create more complexity

Many veterinarians assume that adding partners reduces risk because responsibilities are shared among more people.

While that can be true, each additional owner also adds another perspective, financial situation, and vision for the future. Partnership means sharing both opportunities and responsibilities. When one owner is unavailable, others may need to adjust their schedules or take on additional responsibilities to keep the practice running smoothly.

At some point, the challenge becomes less about ownership and more about governance:

• How are decisions made?
• What requires unanimous approval?
• What happens when owners disagree?

The larger the ownership group grows, the more important these questions become.

Exit planning matters more than most veterinarians realize

Veterinarians often spend a great deal of time figuring out how to become owners, but not enough time thinking about how ownership eventually ends.

What happens if an owner retires early, becomes disabled, gets divorced, dies, or simply wants to leave?

A strong partnership agreement shouldn’t only define how owners work together. It should also define how owners separate when circumstances change. Because eventually, they will.

Don’t let the partnership become your retirement plan

One of the biggest mistakes I see practice owners make is assuming the business itself will solve all of their future financial needs. The partnership, future buyout, and eventual sale become the retirement plan. That’s a lot of pressure to place on a single asset.

What happens if the business isn’t worth what you expected or your partners don’t have the ability to buy you out? What happens if you’re ready to retire before they’re ready to purchase your share?

This is why I believe veterinarians should also focus on building wealth outside the practice. When you consistently move some of your success from the business to your personal balance sheet, you create flexibility. You’re less dependent on a future sale, less dependent on your partners, and better positioned to make decisions because they’re right for the business—not because your retirement depends on them.

The goal isn’t simply to build a valuable practice; it’s to build financial independence.

Five questions to ask before becoming partners

Before signing any ownership agreement, ask yourself the following:

1. Are we aligned on the long-term vision for the practice?
2. How will major decisions be made?
3. How will compensation and ownership be handled?
4. What happens if someone wants out?
5. What happens if one owner contributes significantly more than another?

If those questions feel uncomfortable, that’s OK. They’re much easier to answer now than after you’ve become business partners.

Final thoughts

Partnerships can be an effective way to build a successful veterinary practice. The right partner can help you share responsibilities, accelerate growth, and create opportunities that may not exist as a solo practitioner.

However, successful partnerships aren’t built on friendship alone. They’re built on clear expectations, agreements with complete and comprehensive documentation, and honest conversations about the future.

Before entering any ownership arrangement, ask yourself one final question:

If our friendship changed tomorrow, would this business arrangement still work?

If the answer is yes, you may have the foundation for a successful partnership. If the answer is unclear, it’s worth continuing the conversation before moving forward.

DISCLOSURE:

This material is intended for general public use. By providing this content, Park Avenue Securities LLC and your financial representative are not undertaking to provide investment advice or make a recommendation for a specific individual or situation, or to otherwise act in a fiduciary capacity. Guardian, its subsidiaries, agents, and employees do not provide tax, legal, or accounting advice. Consult your tax, legal, or accounting professional regarding your individual situation. Neither Guardian nor its subsidiaries issue umbrella or auto insurance. CJ Burnett, CExP, is a Registered Representative and Financial Advisor of Park Avenue Securities LLC (PAS). Securities products and advisory services offered through PAS, member FINRA, SIPC. Financial Representative of The Guardian Life Insurance Company of America® (Guardian), New York, NY. PAS is a wholly owned subsidiary of Guardian. Florida Veterinary Advisors is not an affiliate or subsidiary of PAS or Guardian. Florida Veterinary Advisors is not registered in any state or with the US Securities and Exchange Commission as a Registered Investment Advisor. The individuals associated with Florida Veterinary Advisors do not maintain specialized licenses or qualifications for the financial services provided to veterinary professionals. CJ’s CA Insurance License # 0K79676, AR Insurance License #16257929. #9033334.1 Exp. 7/2028