Mixed Animal Veterinary Clinic PM477 - Northwest Missouri

This mixed animal veterinary practice is located in northwest Missouri and represents an amazing opportunity for an experienced veterinarian to grab a piece of a thriving market. The defining capability and distinguishing characteristic of this practice is the focus of the services offered. They strive to provide the utmost care and compassion to their companion animals and their owner clients, as well as providing their production animal clients with the best possible inputs to enhance their profitability and animal well-being. The current owners are nearing retirement after 45+ successful years in business. This is offered as a transition partner opportunity or an outright sale to an ideal candidate. As per the RedTire strategy, the owner is willing to remain in the business in some capacity to provide guidance and facilitate a successful transition. This business boasts an active client list of 1770 and new monthly client growth of about 19 per month. This coupled with client retention rates of more than 95% implies that cash flows have been consistently positive over the years. This veterinary practice employs 9 additional employees besides the owner veterinarian; 3 full-time DVM’s, 2 full-time technicians, 1 full-time receptionist, 1 full-time office manager, and 2 part-time Kennel assistants, all of whom have extensive industry experience and will remain on after a transition or sale.

The practice provides a broad spectrum of diagnostic and therapeutic services to companion / small animals. In addition, the business offers safe and efficient handling facilities for large animals. Included in the broad range of services, specific offerings are: routine visits; wellness exams; companion animal vaccinations; deworming; fertility testing; blood chemistry analysis; soft-tissue and orthopedic surgeries; companion and large animal lab services; radiology services with x-ray and ultra-sound; grooming, boarding & hospitalization; routine dentistry; euthanasia services; administering medications, anesthetics and antibiotics; they also offer emergency coverage; among others. Additionally, products such as Vitamin and mineral supplements and specialty pet foods are also available for sale at the front counter upon arrival and check out during normal business hours Monday through Friday and limited hours on Saturdays.

The real-estate and facilities are owned by the business owner and features a 4,062 square foot clinic housed on a 3.26 acre piece of land. The first floor containing the clinic is 2,862 square feet and the basement is an additional 1,200 square feet with a two car garage for the trucks. An additional 5 acres north of the building is zoned as residential land and is also available. Ideally all these real-estate assets would transfer with the sale via a separate purchase, lease-to-purchase or lease arrangement. This practice features specialized equipment such as; squeeze chute, radiology equipment with a Digital X-ray Machine; HM5 blood machine and in-house IDEXX Vet Lab analyzer and centrifuge; anesthesia, sonogram and oxygen machines; two Ford F250 pickup trucks and; Beef Master trailers and horse / large animal floats; Mobile Vet Boxes for Truck / Pick-up as well other surgical and veterinarian equipment needed to operate the business. The sale would include all of the assets, equipment, supplies and client list.

Historically this practice has displayed a solid financial performance and has a distinct opportunity for continued growth as revenue over the past 6 years has grown at a compound annual growth rate (CAGR) of 4.6%. Gross revenues have consistently been over $925K with current revenues around $1.2M in 2016. Operating profit / net income is estimated to be between 3% and 8% ($105K in 2016). Annual discretionary cash flow earnings available to a new owner (Adjusted EBITDA) is estimated to be more than 20% of revenues or ± $200K+ which is sufficient to service debt financing and still receive a decent remuneration package. The estimated value range from this practice is between $460K and $680K (excluding cash, receivables, liabilities and facilities). For illustration purposes, based on weighted averages of our analysis/method, as described in our valuation report, the estimate of value of the Company as of December 31, 2016 is around $550K.

* Adjusted EBITDA = EBIT plus Depreciation and Adjustments (excludes 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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