Veterinarians and practice owners may consider purchasing an emergency or 24-hour clinic to serve the needs of a greater number of clients. These clinics have become popular in recent years because they allow pet owners to seek care for their pets when they experience acute symptoms outside of standard business hours. However, potential buyers of an emergency or 24-hour veterinary clinic should familiarize themselves with the factors they must evaluate when considering whether to acquire the clinic.
Understand the Market
One of the first steps you should take when considering a purchase of an emergency or 24-hour veterinary clinic includes evaluating the local market and the demand for emergency or 24-hour veterinary services. Evaluating the local market includes identifying the clinic’s geographic location and determining how many other similar clinics exist in the area. You may not want to purchase a clinic in a market already saturated with such clinics.
Furthermore, market research should evaluate the number of pet owners in the market and their willingness to see emergency or 24-hour care for their pets, which can become expensive compared to seeking veterinary appointments during regular business hours. Understanding the market can help determine whether a for-sale clinic represents a viable business opportunity.
Evaluating the Clinic’s Financials
You can review the clinic’s financial records during due diligence to assess the business’s viability. The seller should provide you with access to financials, including profit and loss statements, balance sheets, and tax returns. Reviewing financial records can help you identify patterns in the business’s revenue, such as whether the clinic has stable revenues year-round, experiences seasonal fluctuations in revenue, or continues to have growing revenues. The financials can also help you understand costs particular to an emergency or 24-hour veterinary clinic, such as wages for overnight staff, security measures, and equipment and facility maintenance.
Consider Operational Needs
Prospective purchasers of emergency or 24-hour veterinary clinics should assess the business’s operational needs, including the challenges of securing 24/7 staffing of veterinarians, technicians, and support staff. Buyers should recognize that 24/7 staffing can cause staff burnout and retention issues, as many people may not want to work overnight hours for extended periods. Due diligence will allow buyers to review the clinic’s current staffing and staff turnover rates. Buyers can also examine the clinic’s operational systems, such as scheduling practices, emergency protocols, and practice management software systems.
Regulatory and Licensing Requirements
Prospective buyers should also be certain an emergency or 24-hour clinic meets all applicable local and state regulations relevant to veterinary practices and businesses. In particular, the clinic should hold required local business licenses, licenses needed from the state veterinary board, and permits to store and dispense controlled substances. Purchasers may also consider whether the clinic will require specialized certifications or additional liability insurance to provide emergency or 24-hour services.
Assess the Facility and Equipment
Due diligence will also allow you to inspect the facility to identify potentially worrisome maintenance issues and the building’s functionality for 24/7 operations. You can also inspect the clinic’s equipment to assess its age and condition and evaluate the need to replace or upgrade specific equipment, which can add to the cost of acquiring the clinic. In particular, you may consider whether the clinic has or can support technology to provide telemedicine services. Clients may favor a clinic that offers such services to assess potentially worrisome symptoms in pets, which may help pet owners avoid unnecessary trips to the clinic in the middle of the night.
Contact a Veterinary Practice Law Firm Today
Before buying an emergency or 24-hour veterinary clinic to start or add to your practice, you can protect your financing and legal interests by working with experienced counsel to get the advice and support you need throughout the purchase and sale process. Contact Mahan Law today for an initial consultation to speak to a knowledgeable attorney about buying an emergency or 24-hour veterinary clinic.