Sharing details about your practice’s performance builds trust in your employees and can help make your business even more successful.
Open book management (OBM) has been part of the business vernacular since the mid-1980s, yet it continues to be viewed with healthy skepticism. A 2017 article in Forbes magazine reported that most companies increase profitability and productivity by 30% in the first year after implementing OBM. So, knowing that, what is OBM and would how […]
Manage your expectations
A variety of factors helps determine what your practice is worth and what a buyer is prepared to pay. The market today isn’t all about consolidators.
While specialty practices and referral centers historically have sold for high prices, general practices were not the darlings of corporate takeovers until now. Some owners of companion animal practices have received generous purchase prices, much higher than we would have imagined five years ago. “EBITDA” (earnings before interest, taxes, depreciation and amortization) and “multiples” have […]
Be a number cruncher
Analyzing income-to-expense ratios will help unlock profits. A detailed chart of accounts and benchmark reports are good starting places.
When practice owners and managers want to increase profitability, one of the first things they do is analyze expenses to identify areas where more is being spent than expected. From there, the challenge is to find ways to increase revenue or reduce expenses, or both, without sacrificing quality or service. Often, the best way to […]
Your fair share
How hospital owners are paid — and how much — depends on the responsibilities they hold and the budgets and policies that are in place.
Veterinary practice owners often see their hospital as more than an investment. For many, it is a passion, a calling or a life choice. Few private buyers acquire a hospital with a primary goal of making as much money as possible. The money is important, of course, but creating a legacy is sometimes of equal […]
A place to call your own
Becoming an independent practice owner carries many risks, but the rewards can be hefty if you have a knack for business and are willing to sacrifice sizable paychecks for a while.
I have noticed a surge in the number of associate veterinarians interested in starting a practice. Whether this interest is the result of skyrocketing sales prices for existing practices, the desire to create something of one’s own or other factors, I am seeing new privately owned startups, even in areas with many competitors. Of the […]
Investing in your hospital shortly before a sale makes sense only in certain situations. Needless spending can depress the practice valuation.
With so many veterinarians considering a practice sale, either to an associate or a corporate consolidator, some owners wonder whether making further investments in the hospital or new equipment will yield a higher price. The answer? It depends. Your Facility Is now the right time for new construction or a remodel? If you plan to […]
When selling to an associate makes sense
Consolidators possess deep pockets, but practice owners might welcome a partner’s offer when the property itself, creative financing and even one’s legacy are taken into account.
Corporate consolidators get all the attention these days when the topic is practice sales. As a generation of veterinarians reaches retirement age, the number of practices available to purchase is greater than the number of private practitioners ready to buy. If consolidators can and will pay more for a hospital than an associate veterinarian can […]
The real deal
With practice sales and corporate offers, the devil is in the details.
Owning an attractive veterinary practice that will command a high sales price carries certain bragging rights. While no one would argue that the sales price isn’t important, it is only one factor in a complex deal. Here are some important considerations to ensure your ultimate satisfaction with a sale to a corporate consolidator. 1. Selling […]
Make it your business
Practice ownership opportunities aren’t just for veterinarians. In some cases, managers and nurses can become proprietors, too.
Creating a successful veterinary practice takes more than a veterinarian. It takes a team to engage the pet owner, schedule appointments, provide veterinary medical and surgical care, assure a safe work environment, keep inventory stocked at appropriate levels, and find the best suppliers of everything from gauze to controlled drugs to appointment cards. When you […]
As consolidators hover and prices spike, the decision to sell your practice comes down to more than dollars and cents.
There has been a lot of buzz lately about the so-called corporate practice-buying frenzy and how long it might last. What started with VCA, National Veterinary Associates and VetCor is now a market flooded with consolidators from within and outside the industry. More than 30 consolidators of various sizes are active in the veterinary market, […]