Companion Animal Clinic SAZ022

Originally founded in 1968 and acquired by the owner in 2005, this small animal clinic in South Central Arizona has assembled a veterinary health team that displays unrivaled commitment and compassionate care to all clients and their pets. By offering quality pet health and wellness services to assist their pet patients live longer, happier, and healthier lives, this veterinarian and their team excel in the science of Veterinary Medicine. Incorporated as an S-Corp, this practice offers the best possible preventative health care, medical, surgical, diagnostic and dental care for their clients. Looking to retire within four years the proud owner is willing to mentor a new outright owner or partner to ensure a smooth transition. Thanks to their excellent service, they’ve accumulated over 9,100 multi-generational patients, with ~1,325 active clients seen since 2021 and 44 new clients per month. They are well respected in their community as evidenced by the overwhelmingly positive reviews citing their professionalism, compassionate care and kindness in the 4.4 star Google and 4.3 star Facebook ratings. Operating 5 days a week, the staff of 9 includes the full-time Veterinarian, a part-time long-serving Office Manager, 3 full-time cross-trained Veterinary Technicians, 2 part-time cross-trained veterinary/front office assistants, and 2 cross-trained part-time receptionist / assistants – all of whom are expected to remain after a transition.

Servicing companion pets: the species mix is roughly 75% canine, 25% feline. As a full-service animal hospital offering leading edge products, services and authoritative educational content their focus is on General Preventative Medicine and Internal Medicine to enhance the human-animal bond. To accommodate their clientele, preventative services include; routine annual vet check-ups and wellness programs (adult, senior and puppy/kitten options), dentistry, dermatology, pre-and-post whelping/queening exams, basic ophthalmology, individualized flea control programs, heartworm testing/treatment, deworming and vaccinations. Diagnostic, surgery and therapeutic services include; radiology, surgery (general, corrective, basic orthopedic and ophthalmic), pain management & anesthesia, comprehensive lab services (in house using IDEXX and referral with Antech). Ancillary services are made up of microchipping and OTC pharmacy/retail product sales. According to the owner, this clinic distinguished themselves by providing empathetic staff who focus on client education and offering private euthanasia and cremation services. Additionally, they accept payment via cash, debit, MasterCard, Visa, Discover, ScratchPay and they offer the CareCredit Payment Program for client payment assistance.

Located in one of the largest cities in Arizona, the 1,850 square foot clinic is housed on a 1/3rd Acre property privately owned and leased back to the practice. Located in the heart of its respective town on a busy intersection, the real-estate would ideally transfer with the sale via a separate purchase, lease-to-purchase or lease agreement. A spacious reception/waiting area awaits clients as they enter the building which has an adjacent retail closet containing Hill’s Science Diet nutrition products among other items. Beyond the nurse/reception station, which has 2 workstations interfaced into their AviMark Practice Management Software for scheduling, are three examination rooms and a storage / back office / staff breakroom. Through “staff only” entry doors are two of the exam rooms and a fully stocked pharmacy/lab housing with another workstation interfaced into AviMark and a SWIFT Microscope. Behind the exam room nearest the nurse desk and staff entry door, is a restroom for staff and clients. Down the passageway is the doctor’s consultation room (with workstation) on the right and the surgery suite on the left. Contained within a dedicated sterile surgical suite is a V-Top Shoreline stainless steel surgery table and a Shoreline Surgery LED/Light, 2 Baxter Flo-Gard 6200 infusion pumps, Henry Schein Vet-Base Five Veterinary dental delivery cart with built in Compressor & IM3 dental prophy machine, 2 Bird Anesthesia with Isoflurane machines, patient heart monitor (EKG / Dopler), CO2 monitor and Ophthalmology Tonopen unit, among others. Continuing down the hallway is their treatment and grooming room which also unusually contains their radiology unit and more in-house IDEXX lab equipment. Also located nearby is an isolation ward, their washer/dryer unit, Tuttnauer 2540 Autoclave and two kennel / boarding rooms at the back of the building with door access to a small outside fenced-in turf run. A sale will include all company owned assets, equipment, supplies and well-established client base.

Over the past five years, the clinics’ sales have grown at a compound annual growth rate (CAGR) of 4.2% from $510K to $626K, the owner believes 2023 will be over $720K. Cost of goods sold are estimated ~22% of sales (incl. a Antech Lab / Diagnostics 40% discount, resulting in gross profit margins of ~78%+, right in-line with industry standards. Operating net income / profit margins are estimated around industry norms of ~13-14% once adjustments are made. Annual discretionary cash flow earnings potentially available to a new owner (“Adjusted EBITDA”) is estimated to be 35%+ of sales (±$200K), more than enough for a new owner to service any debt and still receive a generous return on their purchase investment. The estimated value range from this practice is between $370K and $455K (or 60% to 73.6% of the Actual Sales in 2022 of ~$618K). Note: this excludes cash, receivables, inventory, liabilities, and facilities. For illustration purposes ONLY, based on weighted averages of our analysis/method, as described in our valuation report, the estimate of value of this Animal Clinic as of December 31, 2022 (but with 2023 partial results factored in) is around $430K. (Note: this is only for guidance it is not RedTire's suggested price point)