By Michael Kovsky, DVM
International Business Associates, Inc.
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|
|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.
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