Buying into a practice?

Re: Buying into a practice?

Neal Palk — Tue, 03 Sep 2013 12:12:36 GMT

As per Robert, Gillian and others - at the moment it doesn't appear you have the right 'reason' for buying - to keep it from 'Corporate hands' is noble (although reads as self-interest!) but there's no mention of the financial viability, investment exposure, return on investment etc etc.

Gillian's point re the whole management is searching - not saying you can't (or can't learn) but only you know if you're cut out to be part-accountant, part-business developer, part-HR Manager etc etc..............and have the time/energy to be a good veterinarian too!

Re: Buying into a practice?

Julie Innes — Mon, 02 Sep 2013 20:56:09 GMT

I started up on my own, from scratch, a couple of years ago. It has been very hard work, but I'm not sorry I did it. The worries I had in the beginning won't affect you as much, as you would be taking on an established practice, while I had not a single client! I had to refurbish the place and becoming an employer was a steep learning curve for me.

Now I have a different set of problems- the practice is really busy, and continuing to grow, and I am struggling a little to keep up, although I do now have some more staff. Busy means more paperwork, more phone calls, less free time, but I'm hoping in future to be able to balance things a bit better. As others have said, I feel you really need to be fully involved in all aspects of the business, especially initially. I feel like I have lived, slept and breathed it constantly for the last two years, but I was prepared for that at the start, and I'm gradually making changes which will hopefully allow me to eventually get a bit more time off. I'd say go for it!

Re: Buying into a practice?

An On MRCVS — Mon, 02 Sep 2013 20:29:28 GMT

[quote user="bob lehner"]

Getting an independent valuation from a veterinary specialist valuer (or two) is essential in my opinion.

There is also the thorny issue as to what value you have might added to the business during your time as an employee and what effect this should have on the price you pay.

At the end of the day of course it is a matter of 'willing buyer/willing seller'.

[/quote]

Any guidance how this sort affects price would be welcomed - I think there is a significant difference in the turnover and therefore hopefully profits since I started yes.

Thank you for all the other input above, many good points to consider.

Re: Buying into a practice?

Anthony Todd — Mon, 02 Sep 2013 17:38:42 GMT

[quote user="bob lehner"]Getting an independent valuation from a veterinary specialist valuer (or two) is essential in my opinion.[/quote]

Or you could just work out the return on your "investment" and see if it's much more than you're getting now [and without all the headaches attached to being the owner]

What if some whizz-kid opens down the road or a corporate starts pricing you out?

If the seller was smart he'd just put it on the market and see what it's actually worth.....

Re: Buying into a practice?

bob lehner — Mon, 02 Sep 2013 17:18:54 GMT

Of course if you do want to buy the business one of the major considerations is just how much is it worth.

The retiring boss may have an over-inflated idea of its value - and conversely you might pitch too low.

Getting an independent valuation from a veterinary specialist valuer (or two) is essential in my opinion.

There is also the thorny issue as to what value you have might added to the business during your time as an employee and what effect this should have on the price you pay.

At the end of the day of course it is a matter of 'willing buyer/willing seller'.

Re: Buying into a practice?

Robert Lowe — Mon, 02 Sep 2013 11:54:13 GMT

[quote user="An On MRCVS"]

The clinic runs well, is busy and has a good team and it would be a real shame to lose what we have here I feel.

[/quote]

I may be taking this out of context but the first questions I would ask myself is why would I want to do this and what do I want to get out of it? Because you like the team and it works well is a good start but not the main reason for taking on a business.

If you are happy with your reasoning then I would recommend the first step to be an informal discussion with a veterinary specific accountant.

I expected hard work when I started and felt completely overwhelmed. I had no idea that in the long term what I thought was hard work was just the beginning. I had a young child and another on the way when I did it but my wife and I had very long discussions about me not being there and planning for how we would deal with it knowing that eventually the reward would outweigh the pain. If we hadn't have done that and without my wife's understanding then it would have been much more difficult.

The hardest part as Gillian says is management. I was fortunate in that I took on a business but with pretty much a complete change of staff so I didn't go from assistant to boss and have to change my relationship with colleagues. Employing people is hellish and has been the biggest cause of difficultly for me and I have some amazing staff members. I wish I had sought more advice sooner with this.

Would I do it again - over and over. I can now take next Tuesday off (assuming I am not too busy) and spend the day sailing with my children (OK they are back at school then but hopefully you get my drift). I can buy that bit of kit without having to negotiate with the boss or other partners. I will have something concrete to retire off the back of and I don't have to rely on the whim of someone else who may change the direction of the business away from what I want.

Finally - get involved in every aspect of the business from buying to client communication so you understand it all. Then step back and let someone else do it for you so you can earn the fees and be prepared for it to be done to 80% of your satisfaction but know that that is good enough.

Re: Buying into a practice?

Alan Tevendale — Mon, 02 Sep 2013 08:10:12 GMT

I would echo was has been said already. The only thing I would add is even though you can outsource many of the day to day managerial jobs it is still very important to have a good grasp of the buisness side of your practice. Too many vets running practices don't understand the employment law that is appropriate to them or don't understand their finances. This will be praticularly important if you are going to be sole principle.

Re: Buying into a practice?

Gillian Mostyn — Mon, 02 Sep 2013 08:05:24 GMT

I was start-up rather than buy in, but as far as owning my own practice- best thing I did!

As has been said, you do have the added stress of management and finances (the former being the one that causes you the most headaches!) but as long as you feel able to deal with the day-to day stuff, you'll be fine.

You can't beat the feeling of working for your own benefit - and the flexibility that brings! However, you do need to be pretty fixed in your future plans - you can't just move location or jobs anymore!

Re: Buying into a practice?

Colin Thomson — Sun, 01 Sep 2013 22:39:26 GMT

I'd say you should do it. By now you'll know the practice, at least. There's 2 elements that are extra as an owner, IMO. The worry that things will not be successful financially, and the stress of doing the managerial jobs that come with ownership, due to both unfamiliarity and time pressures. How you cope with them depends on your in built attitudes - for example some people never worry about money, others fret over it continually. If you don't feel competent for some the financial, HR, H&S etc tasks you can always outsource them - don't underestimate the value of external professional support.

Re: Buying into a practice?

Michael Woodhouse — Sun, 01 Sep 2013 20:59:10 GMT

Best thing I could have done.

PM me by all means.