Practice ownership is the ultimate goal of many veterinarians. After all, practice ownership offers many benefits, including autonomy, financial gain, and a good work-life balance. However, if you are looking to take the leap into practice ownership, you must make several important decisions, one of which is whether to buy an established practice or start a new one. For some people, the idea of launching and growing a new practice is very appealing. For others, however, the prospect of building a practice from the ground up is daunting. In this article, we examine the pros and cons of buying an existing veterinary practice.
Pros of Buying an Existing Veterinary Practice
The pros of purchasing an existing veterinary practice include:
Immediate cash flow: Purchasing an established veterinary practice often results in immediate cash flow due to the practice’s existing customer base.
Experienced staff: When you inherit the employees of an existing practice, you avoid the need to hire and train new employees—this can save you time and money.
Established reputation: As opposed to a new practice, when you buy a successful existing practice, the local community will already be aware of it and the services it provides.
Lower marketing costs: Finally, there is far less marketing required for an existing practice than a new practice, which means that buying an existing practice will save you money on marketing costs.
Cons of Buying an Existing Veterinary Practice
Although there are many pros to purchasing an existing veterinary practice, there are also some disadvantages, including:
Old equipment: If you purchase an older veterinary practice, it may have outdated equipment, and this can be an issue if you fail to make upgrades.
Employee issues: When you inherit the employees of an existing veterinary practice, some of them may resist any changes you make to the policies and procedures of the office. In addition, there be existing employees who have work habits that you find unacceptable.
Rebranding costs: If you want to rebrand an existing practice or redesign the existing premises, this will cost you additional money.
Reputation issues: If you purchase a practice that has reputation problems, it may take a lot of time, effort, and money to rectify the issue.
Patient turnover: Finally, when you purchase an existing veterinary practice, you run the risk that existing patients may take their business elsewhere or follow the previous owner to his or her new practice (if the previous owner isn’t retiring).
Contact Our Experienced Veterinary Attorneys
If you are considering starting your own veterinary practice, Mahan Law is here for you. With a national network of co-counsel attorneys, our law firm has the knowledge, skills, and experience needed to guide your transaction through to a successful conclusion. When you choose Mahan Law to handle your transaction, we will utilize our understanding and experience to help you achieve your professional and personal goals. Please contact us today to schedule a free consultation.