Has a veterinary corporate consolidator recently contacted you with an offer for your veterinary practice? Many vets receiving their first offer have questions about what veterinary corporate consolidators do and how much value their practice has.
Total Practice Solutions Group helps veterinarians make the best decisions when selling their practice and can help you navigate deals with corporate consolidators, starting by answering some of the most commonly asked questions.
What Is a Veterinary Consolidator?
To create a cohesive operation, a veterinary corporate consolidator establishes a network of regulations, standards, and procedures that take over most of a vet clinic’s back office work. Vets being bought out look forward to the transfer so they can devote more time to practicing veterinary medicine. Companies that buy veterinary practices tend to target successful offices with high revenues.
Corporate consolidators purchase veterinary offices because:
- Pet owners always need a vet, regardless of the economy, so veterinary clinics are a good investment.
- Buying a new veterinary office diversifies the corporation’s portfolio.
- Veterinary mergers and acquisitions take less time and effort.
- The corporation can place an entire region under its network to maximize profits.
Who Are Corporate Consolidators?
Many veterinary corporate consolidators form networks based on net income or regional borders. Smaller consolidators may operate with funding and direction from:
- Family vet offices
- Private equity firms
- Enterprising veterinarians
- Pet-love entrepreneurs
Veterinary Corporation of America (VCA) includes over 30,000 associates, making them the most prominent corporate consolidator in the U.S. You may recognize the name of one of its largest operating veterinary practices: Banfield Hospital. While the VCA takes the lead in U.S. veterinary consolidators, you should take your time and choose the best consolidator for you if you receive an offer.
What Percentage of Veterinary Practices Are Corporate Owned?
As of December 2021, an estimated 25% of vet practices have joined a veterinary corporate consolidation.
How Should You Choose a Corporate Consolidator?
If the idea of less paperwork, marketing, and back office tasks appeals to you, you might consider selling to a veterinary corporate consolidator. However, each consolidator offers different benefits, so it’s essential to consider the needs of your practice, clients, and employees.
After years of building up your veterinary practice, ensure you get your practice’s worth. Before selling to a corporate consolidator, request a practice appraisal from experienced brokers like Total Practice Solutions Group.
Are you considering moving, switching careers, or retiring? Or do you want to continue growing your vet office? Whatever you’re choosing, ask your corporate consolidator what options they offer.
Will your employees stay on? Will prices change? What corporate standards will your office have to follow? Know how a corporate consolidator may change the business you’ve spent years building.
Should Your Vet Practice Join a Veterinary Corporate Consolidator?
Are you thinking of joining a veterinary corporate consolidator? You can speak with professional veterinary practice agents and brokers at Total Practice Solutions Group about corporate consolidators. Call 1-844-908-2967 today and ask for a complete list of veterinary consolidators before choosing the first offer you receive.
Contact us today to have your questions answered!