Total Practice Solutions Group® (TPSG) have been practice owners and understand the demands of veterinary medicine, as well as, practice ownership. We are part of a nationwide team providing not only brokerage services for sellers but also Valuations/Appraisals, Buyer Representation, and assistance for buyers acquiring loans.
Our network of attorneys, accountants, lenders, and insurance agents will help sellers and buyers in the transition process. This blog will focus on key items that a buyer should know when looking for a practice.
10 THINGS A BUYER SHOULD KNOW
- On average, Practice Owners are more highly compensated than associates.
- Ownership also builds equity and provides more financial flexibility with the profit.
- Practice loans are 10 years. They require little to money down. No other investment will allow you the return on investment (stocks, bonds, student loans) than a good Practice will.
- Practice owners control practice quality. You have the ability to change the things you don’t like.
- You can finance equipment upgrades through your bank or vendor.
- Student loans typically don’t hurt loan approval, but high credit card and consumer debt will.
- Conventional vs. SBA loans. Conventional loans typically have lower interest rates and lower fees with shorter approval times. SBA loans have a little higher interest rates, more fees, and a longer approval time frame.
- It is good to have a team of advisors within the veterinary profession to help you make a quality decision.
- Don’t be afraid to ask for help! There are more resources than ever before available to veterinarians.
- The perfect practice does not exist. (a) Pick three “must-haves.” (b) Pick five ‘nice-to-haves.” (c) If that practice has 5 out of the 8, consider taking a serious look at purchasing the practice.
Tyler Phillips | Total Practice Solutions Group | Mid-West Territory