If you’re ready to become a small business owner, acquiring an existing veterinary practice might be a more strategic path than starting from scratch. Numerous advantages come with buying an established practice.
Here are some key advantages to acquiring rather than starting a practice.
Established Groundwork
- Reduced startup burden: When you acquire an existing veterinarian practice, you inherit a built-in infrastructure, including client relationships, staff, equipment and potentially existing contracts with suppliers. An acquisition can eliminate the time-consuming and costly process of building a practice from the ground up.
- Proven market presence: A proven veterinarian practice has already demonstrated its viability in the local market, establishing a loyal client base and a reputation within the community.
A Solid Foundation
- Existing clientele: Acquiring a seasoned veterinarian practice allows you to inherit a pre-existing client base, providing a steady revenue stream. An established client base minimizes the initial marketing and client acquisition efforts often associated with new businesses.
- Established team: You may retain experienced and skilled veterinary professionals, including technicians, assistants, practice managers and receptionists. Retaining key employees can reduce the need for extensive hiring and training.
- Operational efficiency: Existing systems and protocols are already in place when purchasing an existing practice. These processes allow for streamlining daily operations and improving efficiency.
Reduced Risk
- Lower startup costs: Acquiring an existing practice reduces the initial financial investment compared to starting a practice from scratch. Starting a veterinary practice can involve substantial costs for equipment, renovations and marketing.
- Mitigated market uncertainty: You minimize the risk of entering a new market and establishing a new brand. The practice’s reputation and client base provide a solid foundation for future practice growth.
Enhanced Financial Credibility
- Improved loan prospects: An established practice with a proven track record of profitability is more likely to secure financing from lenders. Bank financing can provide the necessary capital for the acquisition and future growth.
If you’re ready to explore buying an existing veterinary practice, here’s how to identify and evaluate one.
- Check multiple resources: Use online platforms, industry publications and business brokers specializing in veterinary practice sales to identify acquisition opportunities.
- Conduct a financial review: Analyze accounting statements, tax returns and client records to assess the practice’s financial health and profitability.
- Analyze the market: Evaluate the local market, including demographics, competition and growth potential.
- Interview pet owners and staff: Engage with the practice’s current clients and staff to understand their experiences and perspectives.
- Assess operations: Evaluate the practice’s operational efficiency, equipment condition and compliance with industry regulations.
Once you select a practice, you need to navigate the acquisition process by:
- Seeking expert guidance: Engage with experienced legal and financial professionals to assist with the negotiation, due diligence and loan-closing process.
- Securing financing: To fund the acquisition, explore options such as SBA and commercial loans.
- Developing a transition plan: Carefully chart a path to ensure a smooth handover and to minimize disruption to clients and staff.
Acquiring an existing practice can be a rewarding path to small business ownership. By carefully evaluating potential acquisitions and conducting thorough due diligence, veterinarians can enjoy a successful and fulfilling career.