Vet Practice – No Production by Owner
Located in Northeastern Kansas, this veterinary clinic and hospital provides general care, surgical and dental services, and has plenty of space for boarding! Fully equipped, the two part-time vets and two full-time vets serve dogs and cats alike. With an exceptional surgical suite, as well as separate rooms for dental procedures and hospitalization boarding, specialty procedures are common and easily handled by this well-qualified team.
Services include general vet care, general and specialty surgical services, dental cleaning and oral surgical work, rainbow bridge transitions and cremation, as well as boarding for both cats and dogs. There are over 50 slots for boarding alone with an additional 20 slots for hospitalized boarding. Boarding animals is certainly an area for continued growth, especially hospital boarding, special needs medical boarding, and contracted boarding for other vets.
Due to the unique scheduling at this location, vets work a wide range of hours, providing excellent care with some extended hours. Currently operating with two part-time vets and two full-time vets (with one vet starting in the summer of 2019), this practice has the capacity to hire two additional full-time vets to meet customer demands and improve the efficiency of service delivery.
The owner currently works full-time overseeing the operations of the clinic. The owner is not currently responsible for any production revenue but does manage the office as well as patient care advocacy. The owner would like to remain a valuable and active part of the team for two to five years after the transition. Duties such as inventory ordering and day-to-day management can be assumed by the current staff as needed.
- Year Established: 2002
- Location and Service Area: Topeka - Lawrence, Kansas area
- Number of Clients: Wide demographic client base
- Animals: Dogs and cats
- Services: General veterinary care, surgery, dental care, boarding (over 50 slots with 20+ additional hospital slots), cremation
- Building: 10,000 sq. ft.: Receptions, 5 exam rooms, dental room, surgery room, rainbow bridge room, radiology, 6 offices, boarding area; Building is available for continued lease
- Reason for Selling: Exit strategy
- Employees: 25: 4 Vets (2FT, 2PT), 3 reception and back staff, 1 scheduling, 1 narcotics tech, 13 assistants, 3 FT kennel staff
- Hours: Standard with some extended hours
- Seller Training Period: Seller will stay on for 2-5 years
- Growth Opportunities: Hire additional vets, increase hours, increase boarding clients, build upon cremation business, capitalize on current resources
- Current Owner’s Responsibilities: Daily oversight and patient advocacy – No production
- List Price: $2,330,000
- Gross Sales:
- 2018: $2,252,719
- 2017: $2,286,974
- 2016: $2,409,765
- 2015: $2,385,121
- Cash Flow:
- 2018: $368,403
- 2017: $390,327
- 2016: $461,343
- 2015: $415,363
- Assets Included in Purchase*
- Equipment: X-ray, surgical equip., vet stations, computers, pharmacy equip., crematory
- Inventory: Supplies, food, medicine
- A/R: $50,000 average due to in-house financing
- Intangible Assets: Well-respected clinic and surgery center, diverse client base, knowledgeable cross-trained staff, family-like atmosphere
*amounts may vary
Cash Flow Analysis
|Description of Financial Statement||Tax Return||Tax Return||Tax Return||Tax Return||Notes|
|Net Income Shown on Financial Statement||$207,005||$254,899||$242,111||$216,901|
|Compensation to Owner||$40,810||$40,464||$100,550||$90,150|
|11% Tax on total W2 Salaries||$6,266||$4,451||$11,061||$9,917|
|Simple IRA||$300||$1,214||$3,017||$2,705||2% company match|
|Health Insurance||$20,632||$20,632||$20,632||$20,632||$1,719.36/month for personal insurance|
|Non-Business Telephone||$2,964||$2,964||$2,964||$2,964||$247/month for personal lines|
|Auto Expense||$2,253||$2,253||$2,253||$2,253||Personal expense|
|Rent||$44,000||$32,000||$32,000||$32,000||Ongoing rent $100k/year|
|Equipment Lease||$11,700||$11,700||$11,700||$11,700||Ended 2018|
|Other unrelated Salaries||$16,157||$0||$0||$0|
|Seller's Cash Flow = Total Addbacks + Net Income||$368,403||$390,327||$461,343||$416,363|
|Profit Margin||16.35 %||17.07 %||19.14 %||17.46 %|
- Profit margin 2018: 16%
Typical Clients and Services
Typical clients are from a diverse demographic base.
- Serving dogs and cats
- General veterinary care
- Dental care
- Surgical cases and extractions
- End of Life
Specific information regarding clients is available upon the receipt of a signed Non-Disclosure Agreement.
- 2 Full-time
- 2 Part-time
- Reception duties are cross-trained with back staff
- Narcotics Tech.
- Cross-trained assistants
- Kennel staff
- 3 Full-time
- Hire additional vets
- Increase hours
- Increase boarding clients
- Build upon cremation business
- Capitalize on current resources including hospitalized boarding
The Firm Business Brokerage used a cash flow valuation methodology to determine the purchase price of the business.
The formula used is as follows:
Cash Flow x Prescribed Multiple = Fair Market Value
Cash flow is the sum of business net income plus any owner perks and any non-onward going expenses.
A multiple is prescribed by a 20 question, 100-point parameter ranking system that is used to analyze the current business health. Each question is based on a scale from 1 to 5: 1 being low, 2 below average, 3 average, 4 above average, 5 high. The average of the responses sum is the business’ prescribed multiple.
For this business, a 2017 cash flow was used with a prescribed multiple is 6.33. With this information, the computation is as follows:
$368,403 x 6.33 = $2,331,991
The fair market value found above positions the business list price at $2,330,000.
|Document Title / Description|
This folder is empty.
Access to this Deal Room is restricted
Would you like to access the deal room?Yes, please
Already have an account? Log in here.
Print, sign and send to:210 N 78th St. 2nd Floor
Omaha, NE 68114
Or fax to: