INDUSTRY TRENDS AND OPPORTUNITIES

• Demand – Demand is driven mainly by demographics. The more people in a given area that are pet owner’s means a higher demand for veterinary services.
• Group Practice - Small group practice of 2 to 3 members is becoming the norm for the industry. Large animal hospital’s and sole proprietorships are becoming a thing of the past.
• Competition from the Pet Store Industry - One of the most recent trends in the industry right now is competition from large major retail pet store outlets such as PetsMart. Independent Veterinarian’s are reacting to this competition by stressing more personalized care and service than PetSmart.
• Shortage of Veterinarian’s - The US is experiencing a major shortage of veterinarian’s. To illustrate, the number of vet school graduate’s hasn’t changed in the past decade. In contrast, with pets living longer and needing more care, demand has gone up.

“Things to know before buying an Veterinary Practice business”
If you are considering buying a veterinary practice there are a lot of factors to consider. Since several associates at Murphy have expertise in the industry we know the major factors in the industry to consider. We know the trends and opportunities in the industry a and can help you capitalize on that knowledge. Here are some important items to consider.

• Managing Receivables - How does the clinic manage receivables? Many Vet clinics have are going to an instant collection system, getting checking/debit card authorization before the client leaves rather than billing them for services. This helps eliminate the problem of collecting past due receivables from clients who cannot afford to pay.
• How does the clinic compete with vet services from large pet store chains? Recent competition from large pet stores have caused independent vet clinics to come up with new strategies to maintain customers.
• What type of on site diagnostic equipment does the company have? Diagnostic equipment is very expensive. Buying into a group practice spreads the costs of investing in diagnostic equipment to all the members of the practice, making it more feasible to buy specialized equipment without affecting profitability.
• Is the practice a group practice or does it have plans to become a group practice? Group practice’s have several advantages over the sole proprietor in this industry. First, they are able to buy capital equipment more easily. Second, the group practice will tend to have a higher profitability due to the fact that a group practice can offer a wider range of services than a sole practitioner.