Use this checklist to assess businesses in this industry for SBA 7(a) lending and underwriting.

Owner Role + Licensing Risk

• Is the owner the sole licensed veterinarian (DVM)?
• Are associate vets or technicians employed?
• Has the owner’s clinical labor been normalized?
• Is client goodwill tied to the DVM or the clinic?

Revenue Structure + Patient Mix

• Are revenues recurring (check-ups) or episodic (emergencies)?
• Does the practice rely on referrals or loyal clients?
• Are service types (surgery, diagnostics, grooming) itemized?
• Are product sales (food, meds) broken out from services?

CapEx + Medical Equipment

• Are X-ray machines, lab tools, and surgery gear up-to-date?
• Has CapEx been normalized in free cash flow?
• Are any medical or kennel assets personally owned?
• Are leasehold improvements or software excluded from value?

Addbacks + Expense Review

• Are family payroll, pet food, or travel included as addbacks?
• Are owner perks clearly separated from business use?
• Has the practice normalized compensation for tech/admin staff?
• Is real estate owned, leased, or included in sale?

Red Flags

• Sole DVM with no backup providers or transition plan
• Major diagnostics/surgery tools omitted or outdated
• Addbacks include lifestyle or pet-related perks
• Goodwill = personal loyalty, not brand or clinic systems

SBA SOP Tip

Veterinary clinics must reflect normalized labor, verified CapEx, and transferable goodwill. SBA-compliant valuations separate owner-driven value from enterprise-level practice continuity.