Essential Steps to Purchasing a Practice with John Campbell

To buy or not to buy, that is the question. Veterinarians have a range of options for their careers that extend from Practice ownership, leadership, and management through to mobile and relief options. Mobile and relief options can provide additional flexibility but with limited potential for wealth accumulation that comes with ownership.

In this one-hour DVM Masterclass, John Campbell a Senior Vice President and Healthcare Market Director, with more than 24 years of experience, led the group through the considerations involved in owning a practice. The major options reviewed were buying an existing practice (and either buying or leasing the property associated with that practice), entering into a partnership model, or undertaking a startup.

Mr. Campbell noted that with a recent slowdown in corporate acquisitions, practices have become relatively more affordable. On occasion, practice owners may also prefer to sell to a private buyer, as some corporate acquisitions have conditions that make them less attractive.

As DVMs are considering buying a practice, Mr. Campbell noted that to place themselves in an optimal position to purchase, they will need to assemble their expert team of advisors to guide them through a successful transition to ownership. This Masterclass discussed best practices for effective due diligence and planning, the need for a banking relationship and how the lending process will unfold. Mr. Campbell was also clear that while practice ownership may be the best way to accumulate wealth as a DVM, there are also clear downsides to be considered especially in terms of work life balance and lifestyle.

Mr. Campbell noted that banks tend to like Veterinarians as clients noting that they have a low default rate, practices tend to have good cashflows, and veterinarians tend to be nice people.

This DVM Masterclass was recorded and readers can access the recording at the WSVMA On Demand Library.