Veterinarian Professional Corporation B – Eastern Kansas

This well managed practice, located in a semi-rural setting, is a mixed veterinary practice (75% equine and 25% small animals) and has been incorporated as a professional partner corporation (P.A.) This opportunity is ideally suited to a qualified veterinarian that is looking to buy into an existing practice that continues to be successful. They provide a broad spectrum of diagnostic and therapeutic services for pets and livestock which includes; treatment, surgery, herd health, obstetrics, vaccinations, well pet visits and emergency work. The business has a rich history of serving the local community and was originally started in 1952. This history translates into good retention of clients and repeat business as well as client referrals. Growth opportunities would present themselves with more marketing efforts, an internet site and a greater presence on social media. The practice is co-owned by two veterinarians and the older partner, who is 59 years old, would like to retire in the next 2 – 5 years. This co-owner took over part of the business in 1985 and has a close affinity with the business and thus wants to see the legacy of this practice continue after he retires. This senior partner owns the buildings and equipment via a separate legal entity and would prefer these assets to transfer with the business (at the very least the equipment), although he is open to a purchase, lease/purchase or lease arrangement as is currently the case. The practice has historically generated more than $700K in gross revenues and currently delivers around $717K (2012). Net Profit margins to the business are estimated to be 7% - 9% (~ $60K). Annual discretionary cash flow earnings for the entire practice, i.e. adjusted EBITDA, is estimated to be $250K - $325K, sufficient cash flows to a new partner to service some debt financing. A new partner investing in this practice would ensure that 5 essential jobs in the area are saved (3 full-time and 2 part-time). The estimated value of the entire practice from operations would be in the $400K - $550K range (which excludes receivables, inventory and facilities). A 50% ownership buy-in for a new partner would be between $200K and $275K.

* Adjusted EBITDA = EBIT plus Depreciation and Adjustments (excluding Owners compensation)

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If you are interested in any of these offers or would like more information about the program or process, please contact Denton Zeeman at 785-864-8863, dentonz@ku.edu, or redtire@ku.edu.

 

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