Buying into a practice

Personal experience and advice for new grads

Abstract

Buying into a practice can be a scary proposition, but by doing 3 things you can set yourself up for success both professionally and financially. Upon graduating veterinary school, we have been consistently trained to use our left brain much more than our right. As we transition from mastering technical skills involved in routine bovine practice into more of a managerial or leadership role, we must grow and practice using our right brain. It is vital to first build a solid foundation as an associate based on work ethic, communication, and selflessness. Practicing leadership, reading to absorb new ideas and information, and learning from your colleagues and mentors is a great place to start.

After deciding that you are a good cultural fit and would like to purchase a practice, you must have an accurate valuation based on the true profitability of the business, complete a feasibility analysis, and create a buy-in/buy-out agreement that is fair for both sides of the transaction. The holy grail of practice ownership is that you are acquiring equity while having the business actually pay for your buy-in.