It is the seller’s responsibility to set an asking price for the veterinary practice. As a buyer, your job is to determine if the asking price is worth the reward that ownership provides.

Summit has a strong reputation for practice valuation; however, a full valuation is more than a buyer really needs in order to make a decision. Instead, we conduct a Summit Affordability Analysis based on historical information from the practice and on the factors that will likely change once you become the owner of the business.

If you are buying a piece of a veterinary practice, it’s possible that very little will change. The current owner or owners will likely continue to draw salaries similar to what they do now, keep the same benefits, and operations will continue as usual.

If you own a minority share, you may not have an opportunity to implement many organizational changes. Our review will ensure that the seller’s valuation reflects that fact in the asking price. If it does not, we will give you specific points to negotiate a reasonable reduction of the list price.

When you purchase 100% of a veterinary practice, you may have the opportunity to quickly make many changes to the operations. We will help you consider your budget and proposed changes in order to determine whether payment of the asking price leaves room for you to invest in the equipment or other improvements you desire. This helps you to avoid paying the seller now for the future growth opportunities that you will create.

In addition to analyzing the asking price, Summit’s Affordability Analysis will identify areas that may need more research, such as exploring facility lease terms and determining reasonable compensation for a seller who will exit the practice in the next few months. The fewer surprises in store when you become a practice owner, the better!

Questions? Call or Click here to get started now.

Do you have enough money to buy the anesthesia monitor you have had your eye on?

Can you afford to give your staff a raise?

Are your associate doctors producing appropriately to pay for themselves?

If you have asked yourself any or all of these questions, it’s time for an outside look at practice profitability.

Summit’s Profitability Assessment includes a review of revenue sources, key expenses such as drug and supply costs, staff salaries, and rent, plus an evaluation of each doctor’s production compared to their compensation.

Why do we look at production by doctor?

Because revenue generation per veterinarian is a significant predictor of practice profitability, meaning practices with higher revenue per veterinarian are generally more profitable.

While doctor production is important, it isn’t the only key to profitability.  We take a comprehensive look at all the numbers to identify the practice’s strong points, where you can make quick adjustments and those areas that will improve over time with the proper attention.

Improving the profitability of your practice is one of the surest ways to increase the value when you are ready to sell all or a portion of your business. Whether your practice is very profitable, not profitable at all or somewhere in between, we’ll give you specific recommendations for improvement.

At Summit Veterinary Advisors, we don’t take a cookie cutter approach to your business. Our recommendations are based on practical experience and are tailored to suit your veterinary practice.

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For many people, the word “budget” brings to mind strict spending limits, and concern for the future. At Summit, we believe that budgets are less about restricting spending and more about investing wisely to promote business growth.

A well-planned budget is a powerful planning tool. Think of it as a master spending plan or your practice’s customized decision-making guide. A budget helps you see future commitments so you know whether you can spend that “extra” cash now, or keep it to cover upcoming expenses.

A budget is also a great way to open a discussion among business partners about practice goals and what it will take to achieve them. Without a budget, you run the risk of overspending or failing to invest enough to grow your practice.

Summit will help you create a budget to:

• Align your spending with industry standards, where appropriate;
• Define goals and measure progress toward achieving them;
• Keep the right amount of cash on hand;
• Build up an emergency fund;
• Plan for short-term borrowing, if needed;
• Identify and address potential problems before they arise.

Learn more by contacting us today.

Summits experienced team of accountants specializes in financial management and record-keeping specific to veterinary practices. Like any other business, veterinary clinics need to maintain accurate financial records, adhere to accounting principles, and make informed financial decisions to ensure the success and sustainability of their operations.  Our team manages accurate and up-to-date records of income, expenses, payroll, managing cash flow, reconciliation of accounts and working closely with your tax preparer.

We offer several different package levels that can be customized to fit your practice needs.

Summit can help you:

• Set up your chart of accounts according to AAHA or AAEP;
• Understand which numbers are most important to track and why;
• Establish policy for consistent recording of all financial transactions, including deposits, bills and payroll information;
• Understand what reports will help you assess the financial health of your veterinary practice and how to interpret them;
• Determine the difference between assets and equity;
• Provide recommendations and give you tips on protecting your assets.

The proper setup of your accounting systems ensures that you can extract the most meaningful information when you need it, and it helps you to compare your practice results with industry standards.

Questions? Call or Click here to get started now.

Are you contemplating the sale of your business? Whether you hope to sell a portion of your veterinary practice to an current associate or you’d like to exit the practice, Summit is ideally positioned to help you through this process.

Our in-depth analysis of your business will help you understand the current value of your veterinary practice. If the value is not where you would like it to be, we can help you understand how to make changes to meet your valuation goals.

The unbiased nature of our analysis combined with the expertise and credentials of our analysts and the completeness and transparency of our report conclusions will give you a result that both you and a potential buyer can trust.  This is critical, because the value of a business is ultimately decided in the market.  The money you invest in analysis will help you establish a fair asking price, which means that you can reasonably plan for your future.

Questions? Call or Click here to get started now.