Access to Ownership


Many veterinarians think about controlling their professional career and income by owning a practice. The methods for achieving ownership can occur in several ways and the following table offers a comparison of issues a buyer might consider.

For some, starting a practice from the ground up is the only way to establish in a specific location. However, for most, the purchase of an existing practice is the most effective and efficient method to gain control of one’s professional career:

Considerations Partnerships

Existing

Practices

Starting a Practice
Start Up Time None None Up to 12 months depending o location, zoning, remodeling, etc.
Initial Investments 0-25% of purchase price 0-25% of purchase price Unknown, depends on equipment improvements, etc.
Total Investment

Varies with % of ownership terms

Depends on price and terms Depends o time to break even
Source of Financing Owners or lenders Seller or lenders Lenders
Cash Flow Immediate Immediate Slow initially
Owner's Salary Immediate Immediate Unknown
Market Identity Immediate Immediate Must be acquired
Client Base Established Established Must be acquired
Support Staff Present Present Must be acquired
Policy & Procedures Established Established Must be acquired
Professional Control Limited by ownership Unlimited Unlimited
Inspections by Govt. Done Done Must be performed
Business Licensing Done Done Must be acquired
Data Entry (records) Done Done Must be performed
Business Protocols Present Present Personal experience
Equipment Present, may need updating Present, may need updating Must be acquired
Physical Facility Present, may need updating Present, may need updating Remodeling and zoning issues to solve
Business Guidance Maybe Maybe Personal experience

 For some, starting a practice from the ground up is the only way to establish in a specific location. However, for most, the purchase of an existing practice is the most effective and efficient method to gain control of one’s professional career.

Author: Michael Kovsky, DVM, ibainc.com, (800) 218-4422
Helping veterinarians purchase or sell veterinary medical practices and real estate; practice evaluations, negotiation or facilitation services; financing alternatives; and career structuring.

This information should not be construed as legal advice, nor a substitute for the advice of counsel. You may wish to consult an attorney about your specific circumstance.

Nevada Veterinary Medical Association
P.O. Box 34420 Reno, NV 89533
phone 775.324.5344 | fax 775.323.1432 | e-mail: nevadavma@sbcglobal.net

 

 

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