Are you looking to acquire a new veterinary practice or potentially merge your existing practice with a new company? While it may seem complicated, assistance from Total Practice Solutions Group will make the process as smooth as possible.
Dogs and cats will always require veterinary care, making a veterinary practice the perfect business opportunity. If you own a pet, then you understand just how vital care for your pet is. Combining your passion with your business gives you the best chance to maximize your profits.
If you already own a clinic or want to acquire your first veterinary practice, contact Total Practice Solutions Group to get started. A merger or acquisition of an existing veterinary practice allows you to decrease competition while reducing costs and increasing profits.
What Are Veterinary Practice Mergers and Acquisitions?
Should you consider a veterinary practice merger or acquisition, you need to understand the critical differences between the terms. Many use these two words interchangeably even though they have very different definitions.
- A merger involves two veterinary practices coming together to form a separate business under one new business name.
- An acquisition occurs when one veterinary clinic purchases another practice outright.
The Structure of a Merger
Businesses can participate in many styles of mergers depending on their desired outcome. For a veterinary practice merger, the following formats provide the most suitable merger styles:
- Horizontal merger: A definitive merger involving two veterinary practices that would otherwise compete to become one new business.
- Vertical merger: A merger involving a supplier forming a new company with their business. For example, a medical supplier and veterinary practice.
- Congeneric merger: A merger of companies that serve the same clients, such as a veterinary practice and a pet grooming company.
- Product extension merger: A merger involving two firms selling similar products to the same clientele. An example would be a pet hotel and a veterinary practice merging.
Valuation of Veterinary Practice Mergers and Acquisitions
Understanding a veterinary practice’s valuation can help you determine whether or not to move forward with a merger or an acquisition. At Total Practice Solutions Group, we specialize in valuing veterinary practices to aid your decision-making process.
The valuation of a veterinary practice depends on the current value of similar practices in the area. Specific business metrics will determine a firm’s value, such as the price-to-earnings ratio, enterprise value-to-sales ratio, discounted cash flow, and replacement costs.
Why Merge or Acquire Veterinary Practices?
The pivotal function of a business remains to increase profits amid the vast number of competitors. Merging with or acquiring new practices eliminates competition while gaining new clients. As companies merge, efficiency increases, thus boosting overall profit.
Veterinary Practice Mergers and Acquisitions Start With Total Practice Solutions Group
If acquiring a new veterinary practice or merging with an existing firm crosses your mind, Total Practice Solutions Group can help make this dream a reality. We handle the logistics of valuing veterinary practices, negotiating prices, and managing the sale of the company.
Call us today at 844-908-2967 to discuss your options for veterinary practice mergers and acquisitions.