Selling your practice is a once in a lifetime business decision that can be emotional as well as financial. We often hear from veterinarians that, while they would love to be free of the business management responsibilities, they also want to be sure that the practice they’ve worked so hard to build doesn’t lose its identity in the sale. Veterinarians often ask us:
- Will the name of my hospital stay the same?
- Will I be able to continue to practice medicine the way we have?
- Will the transition of ownership be invisible to my clients?
- Will my staff be kept intact and respected?
At Pet Partners, the answer to all of these questions is yes, and at the same time, we’d like to get to know you better, too.
At Pet Partners, our goal is to be the premier Veterinary Management Company of the finest companion animal veterinary hospitals in the United States, while maintaining our uncompromising principles of pet care and customer service as we grow.
As we work with each hospital, we follow unique guiding principles to help us make decisions. They are:
- Create a working environment for staff that encourages and supports professional pride and development.
- Develop the highest quality leadership teams in the industry through a management culture that produces deliverable business results.
- Provide the highest standards of primary veterinary care in order to maintain quality health and longevity on the part of our pets.
- Understand that pets are an essential part of the family and strive to achieve the finest client experience through communication, education, and exceeding client’s expectations.
- Recognize that profitability is essential to our future success in preserving these principles.
When choosing veterinary practices to become part of Pet Partners, we look for hospitals that meet the following criteria:
Medicine and Leadership:
- The seller must demonstrate solid leadership and a support staff culture that appears to mesh well with Pet Partners.
- The medicine practiced at the hospital must meet the high standards of Pet Partners.
- The practice must be entirely standard “Western medicine.” Pet Partners is not interested in practices that concentrate on massage medicine, acupuncture, psychotherapy, herbal or other “nonstandard” curative practices as their primary focus.
- The seller must remain in the employ of Pet Partners for a minimum of five years and hopefully longer. There are minor exceptions.
- The seller must be motivated by Pet Partners’ community-based, non-branded philosophy.
- The seller’s practice must be located in a metropolitan or suburban area with a population suitable for growth that is east of the Rocky Mountains.
- The facility must be relatively modern with a structure that does not have major capital expenditure needs.
- The real property must be available for a minimum of 10 years if owned by the practice owner or leased from a third party. If owned by the practice owner, Pet Partners will request a right of first refusal or an option to purchase.
- The gross annual practice revenue must be \$1 million or more.
- The seller’s practice should have suitable earnings with a projected rent lower than 6.0% of revenue.
- The seller must demonstrate stable to increasing revenue growth over the past three years.
- The seller must be willing to accept a seller note or equity participation within Pet Partners standard terms.
- The practice must have a favorable mix of service sales to product sales.
If you find our approach interesting and acceptable, contact us. We look forward to talking with you.