National Commission on Veterinary Economic Issues - News Feeds

Advice for buyers and sellers

• The details of non-compete agreements
  Fear of competition is driving a growing reliance on the use of non-compete agreements by veterinary practice owners.
  
• Grand opening: The new trend of practice startups
  Many associates are choosing to start a new veterinary practice, not buy one. If that's you, find out what's fueling the trend and how to make sure your neighborhood debut is a big hit.
  
• Is your practice as profitable as you think?
  In this seven-part web presentation, Dr. Karen Felsted examines the issue that many practices have low profitability and explains that many owners aren't aware until it's too late. Find out how to identify your practice's profitability level and take steps to correct it—before you're ready to sell.
  
• BizQuiz: Do you know enough about your practice's profitability and value?
  Many veterinary practices have a low level of profitability—and many owners aren't aware they have a problem. But the good news is that the condition is correctible. Find out if you know enough about profitability and value by answering these 10 questions.
  
• Veterinary practice ownership: Who will be in charge?
  See our latest survey data on the gap in dreams of veterinary practice ownership between women and men veterinary associates.
  
• Increase your veterinary practice's reach with satellites
  Secondary sites allow you to expand while still keeping overhead low.
  
• My clients are worth what? Determining the value of your veterinary hospital's customers
  Your veterinary clients have surprisingly little worth when it comes to selling your practice, but they're absolutely priceless on a personal level.
  
• Protect yourself from poor practice partners
  How to protect yourself from loons, goons, and other practice partners
  
• The state of your practice is in jeopardy
  There is little doubt that we, as a profession, are suffering the multiple effects of not-enough-self-­interest.
  
• Dispelling the three greatest practice management lies
  We all probably know the colorful humor that starts out with "What are the three greatest lies ever told?" To me they relate to the current misconceptions about the future of our profession.
  
• In search of the new normal
  Will the value of our homes and business real estate return to pre-2008 levels? Is it time to sell or buy? Will we ever get back to normal?
  
• What pushes your veterinary practice value down?
  Evaluate your animal hospital's staffing, equipment, inventory and more
  
• Financing a start-up mobile practice
  I'm a mobile practitioner hoping to start my own practice. How can I find a lender who will work with me?
  
• Get a loan without a hefty down payment
  The Small Business Administration makes it easier than ever for veterinarians to secure financing.
  
• Video: Dr. Ross Clark explains why now is the best time to build a hospital
  Hear why Veterinary Economics Practice Management editor Dr. Ross Clark says the next few months are the prime time to invest in veterinary medicine.
  
• Plan for your practice's future today
  Whether you're looking to sell your practice or reposition it for the long haul, you'll find the advice you need at Veterinary Economics' Progress in Practice seminars Nov. 4-5 at CVC San Diego.
  
• The best U.S. cities for business opportunities
  Whether you're starting out or starting over, consider relocating to these cities for business opportunities.
  
• 10 facts you need to know when purchasing or selling a practice (Proceedings)
  You have made the decision to sell. It is probably one of the most significant decisions you will make in your working life.
  
• The amorphous buy-in offer
  One of the more stressful times in a veterinarian's employment relationship is contract-signing or contract-renewal time.
  
• Write the great American loan proposal
  Every veterinarian wants to write it. Here's a guide to teach you what it takes to pen a brilliant loan proposal.
  
• Buying capital equipment (Sponsored by Intervet/Schering-Plough Animal Health)
  There are lots of reasons for buying equipment. But whenever you contemplate a significant purchase, you should always be thinking about the return on investment (ROI).
  
• Video: Economy causes buyers and sellers to struggle
  Tom McFerson, CPA, offers advice to veterinarians looking to buy or sell a practice during tough times.
  
• The no-lo practice: Avoiding a practice worth less
  Owners are devastated when they learn their practices are worth only a fraction of what they anticipated as they approach reitrement and contemplate a sale. But if you can understand why this occurs and identify if your practice is at risk, you can begin the process of recapturing this lost value for your practice.
  
• "Help! I need to sell my practice"
  Don't panic: You don't necessarily have to delay retirement due to a struggling economy.
  
• Economy altering dynamics of practice sales
  National Report — The business of buying and selling veterinary practices continued into early 2009 at a steady pace, with some brokers even reporting sales increases.
  
• Thinking of converting a building into a clinic?
  The prospect of building an all-new practice facility is a daunting one, especially for veterinarians who have not owned a practice before.
  
• Is there a simple formula to assess the value of my practice? How do goodwill, inventory, and depreciated equipment factor into it? (Sponsored by Intervet/Schering-Plough Animal Health)
  The excess earnings concept, Excess Earning and Single Period Capitalization Methodologies, is a widely used tool to assess the value of an equine practice.
  
• Practice sales, loans weathering the storm
  NATIONAL REPORT — Anyone wishing to buy or sell a veterinary practice shouldn't have any more difficulty doing so than they would have had before the recent sharp downturn in the U.S. economy.
  
• Banks still bullish on veterinarians
  Though the economy is struggling, veterinary lending is alive and well.
  
• Determining a discount factor
  There are a number of factors to consider when determining a discount factor for your practice value.
  
• Economic crisis having minimal effect on practice sales, loans
  The economic downturn has had little effect so far on the buying and selling of veterinary practices.
  
• Building value as you build your practice (Proceedings)
  The valuation of a veterinary practice reveals a telling story about the practice and its owners and staff.
  
• Video: Why you need a practice valuation now
  Gary Glassman, CPA, explains why you need to value your practice years before you sell.
  
• Q&A: How two practices become one
  I'm considering a merger with another local practice. How do I go about it?
  
• 6 reasons to mentor associates before you sell your practice to them
  "Here are the keys; see ya!" doesn't cut it as a transition plan.
  
• 6 profit-earning purchases for new and established clinics
  As you build, consider making these six profit-earning purchases.
  
• Lessons from an unsellable practice
  A hard-working solo veterinarian reaches 67 years of age and wants to sell his practice and retire after 25 years of building it up. It's a no-brainer — or is it?
  
• Selling your practice's goodwill
  How do I sell my practice's goodwill to a practice that could benefit from the potential business?
  
• Buying and selling essentials (Sponsored by Intervet/Schering-Plough Animal Health)
  Whether you're planning to purchase an equine practice, or sell one, you're embarking on a journey that will lead to one of the biggest milestones in your veterinary career. So where do you start? Right here, by keeping these essential tips in mind as you travel toward practice ownership or sale.
  
• Link to the No-Lo Practice Threat Advisory Worksheet
  Do you own a low-value or no-value practice? Find out here at the AVPMCA's Web site.
  
• Generic drugs: The business of practicing good medicine (Sponsored by Putney)
  Veterinarians and veterinary staff members strive to provide the best possible care for patients, but the amount of disposable income that an individual client has for their pet's care may not always meet the pet's medical needs. One way to help these situations without cutting corners may be to provide the same quality—but less costly medications.
  
• The no-lo practice: Avoiding a practice worth less (Sponsored by AVPMCA)
  Owners are devastated when they learn their practices are worth only a fraction of what they anticipated as they approach reitrement and contemplate a sale. But if you can understand why this occurs and identify if your practice is at risk, you can begin the process of recapturing this lost value for your practice.
  
• The new generation of low-value practices
  Owners, make sure buyers purchase your practices at a good price.
  
• Checklist for a buy-sell agreement
  A printable PDF of the answers you need before buying into or selling a part of a veterinary practice.
  
• Don't get knocked out by a buy-in
  These tips will help you duck common legal, financial, and communication oversights and keep you off the ropes during your transition to ownership.
  
• Got collateral?
  It pays to think through your options when you're borrowing.
  
• Sellers and buyers: You both need to prepare
  Owners, you want to retire someday without worries and leave that business you built up in good hands. Associates, you want a good value for the money. These seminars help you both find the right path to a sale.
  
• To sell or not to sell
  Maintaining a retail area requires time, effort, and most of all, space. Is the investment worthwhile?
  
• Find the right exit
  Consider these five roads out of practice, and start planning your journey now.
  
• Your practice may be worth less than you think
  Too often practitioners who thought they were on the doorstep of retirement are finding they need to work three to five years longer than they thought—or even more. The problem: When they have the practice valued, they find a gap between the retirement they envision and what they can actually afford.
  
• Taxing associate buy-ins
  If you're considering selling part ownership to a valued associate, you need to know the tax traps for buyers and sellers.
  
• How to cut legal fees when starting or selling a practice
  A retainer agreement should include a statement of hourly billing rates.
  
• Address legal threats before buying into a practice
  I have lost count of the number of occasions when I have written in this column that partnership in a veterinary practice is very similar to marriage. The analogy is one that potential partners must ignore at their peril. Nonetheless, joint ownership of a professional practice can be much like something else as well: a couple moving in together.
  
• Get a clear picture of practice value
  A potential buyer will want to know what it would cost to provide the same services you offer.
  
• Planning an exit strategy with an associate who doesn't want to own
  I'm the sole owner of a two-doctor practice. I have a great associate. She loves it here, I pay her well, and she knows she's appreciated.
  
• Buying in: Are you ready?
  Buying into a practice could bring great opportunities or heartache. The key: Know what you're getting into.
  
• Taking care of the team after selling the practice
  I don't want to leave staff members jobless when I sell my practice. Can I include a clause in the contract requiring the buyer to retain my employees?
  
• Who's buying?
  Women now buy half of all practices sold in some parts of the country, and prospective women buyers are on the rapid rise nationwide. The Northeast, mid-Atlantic and the Southeast contain the largest concentration of female buyers, according to brokerage statistics, and national trends have begun to mirror the general doctor population, too.
  
• Women: Half of associates want ownership stake
  CLEVELAND—Almost half of women associates surveyed cite an interest in practice ownership/partnership despite speculative fear that the next generation will avoid the management headaches.