Post-close · Veterinary Services

Post-Close Cap Table Design Counsel for Veterinary Services Acquisitions

Independent sponsor counsel for veterinary services, focused on Post-Close Cap Table Design and the deal mechanics that protect sponsor economics and LP alignment.

EV range $8M to $100M EV EBITDA $2M to $18M Audience Independent Sponsor
The deal context

An independent sponsor closing veterinary services transactions in the $8M to $100M EV range has a defined set of moves at the Post-Close Cap Table Design stage. Most of them are not in a generic M&A textbook.

The typical veterinary services platform sits at $8M to $100M EV with EBITDA in the $2M to $18M range. The thesis runs on general or specialty practice roll-up under an MSO. DVM retention is more valuable than equipment. Underwrite the people, then the practice.

The moves

How Post-Close Cap Table Design actually gets structured.

  1. Reserve a 10 to 15 percent management incentive pool, vesting on time and performance.

  2. Document profits interests in the LLC operating agreement with a clear strike value.

  3. Build anti-dilution mechanics for the rolled-equity sellers, narrowly.

  4. Plan for add-on equity issuances with pre-approved dilution mechanics.

  5. In veterinary services, layer in state-by-state CPM analysis filed pre-LOI as part of the Post-Close Cap Table Design workstream.

The common mistake

Designing the cap table for day one only. The cap table you sign at close is the cap table you live with through year five.

Jason's take
"Cap tables are forecasts. Build them for the deal you want in year five, not the deal you signed in week one."
Jason Powell · Post-Close Cap Table Design
Capital after close

The deal is one thing. The capital that opens up after close is another.

The capital that opens up post-close, from refinancing to growth equity to strategic exit, runs through a small set of Wall Street relationships. That network is built in.

MONTH 18
Senior refi
MONTH 24
Dividend recap
MONTH 36
Growth equity
YEAR 4–5
Strategic exit
TALK TO JASON

An LOI on the desk, a veterinary services target, and a Post-Close Cap Table Design question worth a real conversation.

Twenty minutes of practitioner-grade input from a securities attorney whose first move is to read the deal, not the engagement letter.