There is no greater personal satisfaction than having a thriving business and knowing that you were responsible for its success. As a veterinary practice owner, you set the quality of care and level of client service and enjoy opportunities for significant financial achievement.
The increased income from being a practice owner can give you freedom from educational debt. Building a business with tremendous equity and net worth can let you take charge of your financial future.
Simmons provides expert guidance and services for buyers:
A Simmons advisor can help you find the best opportunity for you. To get started, contact your regional Simmons advisor today. We can provide guidance and assistance in any practice purchase situation.
Simmons has helped connect buyers with sellers for nearly 50 years as the premiere veterinary broker and appraiser in the nation. Lean on our expertise as you navigate one of the most impactful decisions of your professional career and personal life. Have questions? See our FAQs below and reach out if you want to dig deeper.
Buying a practice may be the largest, most complex, yet most rewarding financial transaction of your life. You can avoid potentially expensive missteps by teaming with a professional broker to act as an intermediary and guide. Whether you’re looking for a companion animal, large animal, or mixed practice, Simmons leads you through every step of the buying process, from identifying the practice that’s the right fit for you, to providing sample purchase contracts, to spearheading contract negotiations, to connecting you with lenders, to orchestrating closing details. We’re with you all the way. Let us put our nearly five decades of success to work for you. Your Simmons advisor will provide expert guidance by:
Whether you are currently working in another practice or just graduating from school, our expert advisors help you navigate the unfamiliar maze of negotiations, finances, and practice ownership, from the first handshake to the first day you hold the keys to your practice. To get started, contact your regional Simmons advisor today.
We can help if you want to purchase a practice currently listed with Simmons. Under our paid contract with the seller, part of our job to help with the sale of the practice includes assisting the buyer throughout the entire process. Buyer services when purchasing a practice listed through Simmons are delivered at no cost to the buyer, including:
We can represent you and your best interests when buying a practice by acting as the mediator between you and the seller. Representation includes:
As a facilitator, we assist both you and the owner through the steps of the practice sale, with both parties sharing the cost. Facilitation typically involves associate veterinarians seeking to buy all or part of the practice from the current owner. Facilitation services include:
It depends on many factors. Are you a corporate investor paying cash or private equity money, or a private buyer obtaining commercial financing? What is the size of the practice in terms of growth revenues and number of doctors? How risky is this investment for you and any other buyer? Is the practice growing or declining? How profitable is the practice? Is the seller highly motivated or in no rush and happy to wait for their preferred price? There is no general rule of thumb such as a percentage of gross revenues or a certain multiple on profit (EBITDA).
Financing for veterinary practice acquisitions is readily available at great terms for veterinarians seeking to purchase practices. When working with Simmons, we will connect you to several lenders who fit the unique needs of your particular transaction and who we think will do the job for you. Often, one can borrow up to 100% financing to acquire both the practice and real estate.
Yes, you can purchase a practice even with student debt. Student loan debt is “good debt” so long as it’s reasonable and you weren’t living a lavish lifestyle while in school and borrowing above your means to repay. The caveat is that the practice must be profitable enough to satisfy your personal financial needs, which includes all debt payments and any other household expenses you have, in addition to the debt service.
The worth of any investment is truly in the eyes of the buyer. While your lender will determine if the asking price is financeable for you—in other words, if the profitability of the practice offers enough cash flow to support the debt service on the practice and your personal financial needs, in addition to all real and necessary practice expenses—statistically, a well-managed, reasonably profitable practice grossing in excess of $900K should appraise and sell for 85-105% of gross to a private veterinary buyer. Corporate investment prices far exceed 100% of gross. If you suspect the appraiser/broker representing the seller is overly optimistic or you’ve received questionable data, then you may want to have your own practice appraisal done or hire your own broker to perform a buyer feasibility analysis.
It’s usually better to purchase the real estate, though it does depend on the specifics of your particular transaction. If the seller owns the real estate, there are rare circumstances wherein the buyer would not want to purchase it with the practice. If priced right and fair market rent is built-in as a practice expense, the practice cash flow should support financing of both the practice and real estate acquisitions, and the mortgage payment should approximate what the rent would be if you leased it. And it does not require any more down payment whether you buy the real estate or lease it. This can all be financed. Real estate is one of the most secure investments one can have, and you begin building equity at the outset. Furthermore, as your own landlord, you can make facility modifications as and when needed without having to get permission or input from your landlord.
Sign up to receive our monthly newsletter, featuring insightful articles about the business aspect of veterinary medicine.
© Simmons & Associates Inc. | Web Design by PHOS Creative
There is no greater personal satisfaction than having a thriving business and knowing that you were responsible for its success. As a veterinary practice owner, you set the quality of care and level of client service and enjoy opportunities for significant financial achievement.
The increased income from being a practice owner can give you freedom from educational debt. Building a business with tremendous equity and net worth can let you take charge of your financial future.
Simmons provides expert guidance and services for buyers:
A Simmons advisor can help you find the best opportunity for you. To get started, contact your regional Simmons advisor today. We can provide guidance and assistance in any practice purchase situation.
Simmons has helped connect buyers with sellers for nearly 50 years as the premiere veterinary broker and appraiser in the nation. Lean on our expertise as you navigate one of the most impactful decisions of your professional career and personal life. Have questions? See our FAQs below and reach out if you want to dig deeper.
Buying a practice may be the largest, most complex, yet most rewarding financial transaction of your life. You can avoid potentially expensive missteps by teaming with a professional broker to act as an intermediary and guide. Whether you’re looking for a companion animal, large animal, or mixed practice, Simmons leads you through every step of the buying process, from identifying the practice that’s the right fit for you, to providing sample purchase contracts, to spearheading contract negotiations, to connecting you with lenders, to orchestrating closing details. We’re with you all the way. Let us put our nearly five decades of success to work for you. Your Simmons advisor will provide expert guidance by:
Whether you are currently working in another practice or just graduating from school, our expert advisors help you navigate the unfamiliar maze of negotiations, finances, and practice ownership, from the first handshake to the first day you hold the keys to your practice. To get started, contact your regional Simmons advisor today.
We can help if you want to purchase a practice currently listed with Simmons. Under our paid contract with the seller, part of our job to help with the sale of the practice includes assisting the buyer throughout the entire process. Buyer services when purchasing a practice listed through Simmons are delivered at no cost to the buyer, including:
We can represent you and your best interests when buying a practice by acting as the mediator between you and the seller. Representation includes:
As a facilitator, we assist both you and the owner through the steps of the practice sale, with both parties sharing the cost. Facilitation typically involves associate veterinarians seeking to buy all or part of the practice from the current owner. Facilitation services include:
It depends on many factors. Are you a corporate investor paying cash or private equity money, or a private buyer obtaining commercial financing? What is the size of the practice in terms of growth revenues and number of doctors? How risky is this investment for you and any other buyer? Is the practice growing or declining? How profitable is the practice? Is the seller highly motivated or in no rush and happy to wait for their preferred price? There is no general rule of thumb such as a percentage of gross revenues or a certain multiple on profit (EBITDA).
Financing for veterinary practice acquisitions is readily available at great terms for veterinarians seeking to purchase practices. When working with Simmons, we will connect you to several lenders who fit the unique needs of your particular transaction and who we think will do the job for you. Often, one can borrow up to 100% financing to acquire both the practice and real estate.
Yes, you can purchase a practice even with student debt. Student loan debt is “good debt” so long as it’s reasonable and you weren’t living a lavish lifestyle while in school and borrowing above your means to repay. The caveat is that the practice must be profitable enough to satisfy your personal financial needs, which includes all debt payments and any other household expenses you have, in addition to the debt service.
The worth of any investment is truly in the eyes of the buyer. While your lender will determine if the asking price is financeable for you—in other words, if the profitability of the practice offers enough cash flow to support the debt service on the practice and your personal financial needs, in addition to all real and necessary practice expenses—statistically, a well-managed, reasonably profitable practice grossing in excess of $900K should appraise and sell for 85-105% of gross to a private veterinary buyer. Corporate investment prices far exceed 100% of gross. If you suspect the appraiser/broker representing the seller is overly optimistic or you’ve received questionable data, then you may want to have your own practice appraisal done or hire your own broker to perform a buyer feasibility analysis.
It’s usually better to purchase the real estate, though it does depend on the specifics of your particular transaction. If the seller owns the real estate, there are rare circumstances wherein the buyer would not want to purchase it with the practice. If priced right and fair market rent is built-in as a practice expense, the practice cash flow should support financing of both the practice and real estate acquisitions, and the mortgage payment should approximate what the rent would be if you leased it. And it does not require any more down payment whether you buy the real estate or lease it. This can all be financed. Real estate is one of the most secure investments one can have, and you begin building equity at the outset. Furthermore, as your own landlord, you can make facility modifications as and when needed without having to get permission or input from your landlord.