The Simmons E-TIMES covers many issues in the veterinary ownership transition process -- buying and selling, real estate issues, practice valuations, financing concerns and questions.  This month we are pleased to have a guest article submitted by Vince Dailey with Live Oak Lending. 

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You Can’t Afford Not To Buy A Practice

Vince Dailey, Live Oak Lending

 

Many veterinarians believe the dream of owning their own practice is just that, a dream.  With practices now grossing over $1M and real estate prices on the rise, the thought of being able to borrow somewhere between $1M and $3M is unthinkable.  But, that is where they are wrong.  Loans are available to veterinarians at reasonable rates and with little or no money down.  These loans are being done all across America today for associate veterinarians to buy the practice where they work now or one clear across the country. 

There are many misconceptions out about a veterinarians’ ability to buy a practice.  First, they will need a large down payment. This is not the case, and most loans for practice purchases are done with no money down.  Second, they need all of their student loans paid off.  This could not be farther from the truth.  Veterinarians will have a much easier time paying off their student debt if they own their own business.  Trying to pay off student loans on an associate’s salary is very difficult. Another misconception is that veterinarians have to practice for over five years before banks will consider them for a practice purchase loan.  Loans have been provided for veterinarians with only one year of experience as a practicing veterinarian.

Another commonly heard statement by veterinarians is that their salary as an associate will be the same as an owner.  In most cases, owners will be able to make more money as an owner than as an associate, but even if this were the case, one must look at the asset being created for the future.  Most practice purchase loans are 10-year loans.  If one were to purchase a $1M practice, in 10 years he/she would own this $1M asset free and clear.  This does not account for any growth in the value of the practice.  The future value of the practice along with any real estate value created will be the largest part of the retirement nest egg. 

You can’t afford not to buy a practice! 

Dick Goebel, DVM with Simmons
is honored by Purdue University's School of Veterinary Medicine

We are proud to announce that Dr. Goebel was recognized by Purdue University's School of Veterinary Medicine for his exceptional accomplishments as a veterinarian.   The school of veterinary medicine honored two alumni at the school's annual Fall Conference for Veterinarians and Veterinary Technicians on September 26th.

"I can’t think of a more deserving recipient for such a prestigious award.  I feel privileged and honored to be a colleague of such an accomplished individual.  Dick’s success in no small way must also be related to his kindness and wisdom as a human being.  His sharing and collaboration must have touched and positively shaped many lives.  It has mine!" said Jim Stephenson, Simmons Northeast.

Dr. Goebel was honored for excellence in clinical practice, involvement in organized veterinary medicine and service to the local community. He has served as the director and owner of five veterinary practices in Indiana.  At Purdue, he was the first director of the Veterinary Teaching Hospital for 10 years before assuming his current position as special assistant to the dean. He has served on the board and numerous committees of the American Animal Hospital Association. In addition, Dr. Goebel currently serves as a facilitator for Veterinary Study Groups, Inc., a company that spawns and supports veterinary management study groups.

 

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What Others Say . . .

"I purchased my first animal hospital through Simmons.   It was an absolute pleasure to work with your office.  I will recommend you to anyone and everyone and I look forward to doing business with you again in the future. "
 --  A. Dooley, DVM

"I believe without his help, the sale would have likely folded.  The reasons for choosing Dave (Gerber) included his invaluable experience as a practicing veterinarian, a broker, and his professional, yet easy-going style."
  -- P. Crabtree, DVM

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If you have any questions you want answered in the E-TIMES send them to info@simmonsinc.com.  We welcome your comments and suggestions.