When a veterinarian begins to think about retirement, he/she often considers selling their veterinary practice several years prior to actual retirement. He/she investigates how to sell a veterinary practice and finds that some colleagues sold their veterinary practices to consolidators.
Should you think about selling your veterinary practice to a Consolidator?
If a consolidator offers what seems like top dollar, the idea sounds enticing. Selling to an associate can take years whereas consolidators can close the deal much more quickly. If, however, you contact some colleagues for their input about the process and the result, you are likely to find that these same colleagues express dissatisfaction with the resulting situation.
The main reason for U.S. veterinarians to sell to consolidators is to manage cost pressures and to avail themselves of the bargaining power that larger organizations have. The downside of selling to a typical consolidator is that owners lose control. Yes, your colleagues continued working at the veterinary practice that they developed over many years, but now they find themselves left out of decisions about management and operation of the clinic they built with so much care. They no longer have control of their practice, and their daily clinic work doesn’t provide the excitement it did prior to selling to a consolidator. They go to work each day as an employee instead of an owner.
How About selling your veterinary practice to an Associate?
On the surface, selling to an associate might seem like a good idea. After all, an associate already has helped increase the value of the practice. Unfortunately, selling to an associate can be the riskiest option. Once negotiations begin between an owner and an associate, the current work environment changes – often bringing an unpleasant tension.
Even if negotiations go well, the process of selling your veterinary practice to an associate can drag on and become overly complicated at a time when the owner wants to begin a peaceful and smooth exit.
A Better Way to Sell Your Veterinary Practice
There must be a way to sell your veterinary practice that will be in your best interest – a method that makes you happy instead of stressed, a method that allows you to finish practising on your terms.
Yes, there is. AmeriVet is the answer – a partnership model developed by and for veterinarians that give the owner the benefits of consolidation without the negative consequences of losing control of your practice. With AmeriVet, you have the flexibility of partnering with a consolidator, while still retaining an equity stake in your business as you prepare for retirement. You will receive the following:
- a cash payment from AmeriVet for the portion of your clinic it acquires
- monthly distributions from the clinic’s cash flow for your portion
- a 10% ‘kicker’ on EBITDA growth starting the day AmeriVet invests
- a salary that you determine
- retain ownership in your business and participate in the exit multiple
- benefit from the value-added services AmeriVet offers as options
Flexibility in Selling Your Veterinary Practice
Unlike typical consolidators, AmeriVet has built flexibility into its model so that an owner can –
- retire earlier than originally planned
- work as little or as much in the clinic as he/she wants
- take time off as desired for vacations, relaxation, whatever
- recruit a professional veterinarian to take over or share patient duties
- recruit an office manager to run the clinic’s day-to-day operations
The AmeriVet model gives its veterinary partners the tools needed to thrive in the competitive marketplace, as well as the benefits of being part of a larger organization while still retaining ownership and operational control of their clinics.
Contact AmeriVet to discover all the advantages you will gain by partnering with us.
Written by: Michael Kemp, EVP, Business Development