
Professional Veterinary Corporation (P.A.) AV005

This exclusive two doctor small animal practice is located in south-central Kansas and has been incorporated as a professional corporation (P.A.). It offers a broad range of medical, diagnostic, surgical services as well as preventative medicine for companion animals. These services are supported by a 9 station Cornerstone Practice Management System, Abaxis in-house VS/2 blood chemistry and HM5 hematology analyzer, radiography, fully equipped surgical and dental suite with two Sevo/Iso anesthetic units with patient monitors. The practice has a fully stocked pharmacy and offers a broad selection of retail products and therapeutic diets. Other services include boarding and grooming which are supported by 50 Shor-Line SS kennels, 24 climate controlled/ ventilated runs/kennels and a grooming suite with 2 electric lift grooming tables, SS walk-in tub and 4 cage dryers. The business currently employs 11 staff; 2 full-time veterinarians (including the owner), 1 veterinary technician and 8 administrative / supporting staff. The owner is nearing retirement and is interested in selling the business within 1½ to 2 years and will stay on, in some capacity, to mentor a new owner and help transition the business. The practice has been located in the specifically designed building since 1975 and the current owner has been operating the business at this location since 1986. The real estate and facilities are owned by the owner via a separate legal entity and leased back to the business, which includes an approximate 3,344 square foot veterinary building housed on an approximate 1 Acre piece of land. The building was completely remodeled 3 years ago and offers an inviting, pleasant atmosphere. Ideally these assets would transfer with the business through a purchase, lease-to-purchase or lease arrangement. The business has remained profitable throughout its history and is currently producing $742K in gross revenues (2013). Operating profit / net income is estimated to be between 13% and 15% ($99K or 13.5% in 2013), which is in line with industry averages). Annual discretionary cash flow earnings to new owner, i.e. adjusted EBITDA, is estimated to be more than $275K (before any new owners remuneration), sufficient to service any debt financing. The estimated value range of this practice from operations is between $500K and $680K (excluding cash, receivables, inventory, liabilities and facilities).
Vet Prof. Corp AV005 | Historical 2013 |
Base 2014 |
Forecast 2015 |
Forecast 2016 |
Forecast 2017 |
Forecast 2018 |
---|---|---|---|---|---|---|
Revenue/Sales % Increase |
742,410 -2.7 |
757,258 2.0 |
772,403 2.0 |
787,851 2.0 |
803,608 2.0 |
819,681 2.0 |
Gross Profit GP Margin (%) |
545,513 73.5 |
560,165 74.0 |
572,527 74.1 |
585,159 74.3 |
598,068 74.4 |
611,258 74.6 |
Net Income (EBIT) NI Margin (%) |
99,956 13.5 |
102,324 13.5 |
106,688 13.8 |
111,185 14.1 |
115,820 14.4 |
120,595 14.7 |
Adjusted EBITDA* EBITDA Margin (%) |
277,698 37.4 |
283,622 37.5 |
291,611 37.8 |
299,807 38.1 |
308,214 38.4 |
316,837 38.7 |
* Adjusted EBITDA = EBIT plus Depreciation and Adjustments (excludes Owners compensation)