We have experience in this industry for the valuation of the business, equipment and real estate. Let us help you with our valuation consultation in all areas of the valuation of veterinary clinic businesses. Below is a brief synopsis of the industry.
Description of Business
Establishments of licensed practitioners primarily engaged in the practice of veterinary medicine, dentistry, or surgery, for animal specialties
General Industry Information
The services provided by veterinarians affect several different areas. Public health, agriculture, and human companionship are served by this highly specialized industry. In order to open a practicing veterinary clinic or hospital, a licensed Doctor of Veterinary Medicine must be employed.
In the United States, approximately 67% of veterinarians are engaged in private or corporate clinical practice. Other veterinarians limit their practice to the care of farm/ranch animals and advise owners on the best approaches to production medicine. Some veterinarians treat horses exclusively, and others treat combinations of species. Although a majority of veterinary professionals focus on basic services for companion animals, a large variety exists in terms of specialization by procedures. This includes treatments for cancer, dental care, and animal transplants.
Clinics servicing smaller companion animals have begun to sell over the counter drugs and other animal care products in addition to offering traditional veterinary services. The pet population has increased significantly, maintaining steady demand for veterinary services. Although the market largely consists of smaller independent operations, a clear industry leader exists. VCA Antech, Inc. boasts of a network of over 300 animal hospitals throughout the United States.
Red Flags and Risks
The largest risk for a veterinary clinic or hospital is the threat of competition. Chain pet shops, such as Petsmart, and Petco increasingly provide free advice and often sell over-the counter medications for animals. This threat can be hedged to a certain extent through advertisement and marketing. Buyers should beware of any licensed veterinarians who intend on parting from the clinic after acquisition. It may prove difficult and costly to replace these highly skilled and licensed employees, should they choose to leave.
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