Risk Assessment When Acquiring a Veterinary Practice

Buying any business requires due diligence to ensure you know exactly what you’re purchasing and know the enterprise’s business, health, and safety risks. Risk assessments in veterinary practice are especially important because safety is critical to a profitable practice. From ensuring compliance with veterinary practice regulations to evaluating the business’s financial footing and growth potential, here’s why a risk assessment is critical — and what you need to look for.

What Is a Risk Assessment in Animal Care?

From the potential buyer’s standpoint, risk assessments in veterinary practices are reviews of the potential issues that could present challenges to you as the practice owner that could prevent you from meeting your goals and becoming a successful and competitive player in your market. These detailed evaluations cover nearly every aspect of the practice’s current operations.

More specifically, what are the five things a risk assessment should include?

1. Competition

How many other animal practices are in the area, and what are their differentiators?

2. Transition Plan

A hassle-free transition to new ownership is crucial for maintaining the existing customer base, so a plan for a smooth handover needs to be in place.

3. Practice Management

Purchasing an existing practice means preparing to manage its business aspects and evaluating the potential for growth while still providing the best possible animal care.

4. Health and Safety Risks

Veterinary care is inherently risky.

What are three safety hazards in the veterinary clinic? Exposure to biological and chemical hazards, injuries, and other dangers top the list, and a risk assessment needs to confirm compliance with health and safety legislation in the veterinary practice, determine whether any additional mitigation measures are necessary, and if so, what.

5. Resale Value

When buying a new practice, resale value may not be the priority, but it’s still a concern. Buyers need to consider the potential for growth and market characteristics and how they will influence the practice’s future value.

Assessing Safety Hazards in Veterinary Clinics

All animal care professionals have a legal responsibility to continually evaluate the health and safety risks of their practice; in practices with more than five staff members, this includes a written risk assessment that identifies the risk, the harm it presents, and the steps to reduce the danger. The overarching goal of these reviews is to answer the question, “What can a veterinarian do to prepare and be safe in both the clinic and field settings?”

When considering the purchase of an existing practice, scrutinizing the current health and safety protocols provides insights into practice operations and whether new investments or other changes are necessary to ensure safety for providers, staff, and patients.

Get Help Acquiring a Veterinary Practice from Total Solutions Group

Total Solutions Group is a team of experienced vet practice brokers who ensure that every sale benefits both the seller and the buyers. Trust their experience with risk assessments in veterinary practice to ensure you’re buying a safe, well-run, and profitable business. Reach them at (844) 908-2967 for help with every step of the process.

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