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 on 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 and terms | Depends on price and terms | Depends on 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.
