Small and Exotic Veterinary Hospital MGA675

Since opening its doors in 1991, this companion, exotic, and zoo animal practice has strived to provide the highest quality of veterinary care in central Kansas. Looking to retire in the next few years, the owner is open to an outright sell or a short-term transition as an employee or mentor. With the help of the well-trained staff’s unsurpassed experience in veterinary medicine, they have built up an expansive list of preventative, diagnostic, surgical, and ancillary services. Besides the owner, there are 9 employees including; one part-time DVM, one full-time DVM, one full-time vet tech, one part-time accountant, one part-time receptionist, one part-time cleaner, and three part-time kennel assistants. Facilitating a positive work culture with many long-term employees, this highly skilled team are expected to stay on after the transition. According to the owner, they have spent the last 32 years building a strong reputation in the community as evident by their 90% customer retention rate and 4.6 rating based on 40 Google reviews. With an emphasis on providing professional quality care to their clients’ pets, this S-Corporation adds around 12 new clients per month to a base of more than 5,000 active clients (as seen in the last 24 months). Aiming to always be there for their long-term stable clientele, this veterinary practice is open Monday through Friday with limited hours on Saturday.

Offering a comprehensive range of veterinary services, the species makeup for this veterinary practice is about 61% canine, 20% feline, 2% exotic, and 17% zoo animals. Ensuring that pets live a healthier life through an individualized approach and compassionate care, this practice offers preventative services including; vaccinations, wellness exams, microchipping, parasite control, and dental care for cats and dogs. Having spent the last 32 years providing top of the line diagnostic care, services include but are not limited to laser therapy, radiology, and in-house laboratory. Utilizing state-of-the-art equipment, this practice provides a number of surgical services, such as sterilization surgery (spay and neuter) and laser surgery. Always putting their clients’ needs first, this practice also offers boarding services, an online pharmacy, pharmaceutical products, and 24/7 emergency services. Additionally, in order to provide top notch care to local zoo animals, the owner operates from a satellite office provide by the city to care for the zoo animals.

Located within the main business hub of the county, this turnkey practice primarily operates within a 3,887 square foot facility, owned by the veterinarian. In the event of a sale, the hospital would transfer via a separate purchase, lease-to-purchase or lease arrangement. Upon entering the facility, the practice’s loyal clientele steps into a welcoming reception area and spacious waiting area. Once inside the facility, clients can pass the time browsing the wide variety of retail products along the wall. Across the waiting area are two adjacent exams rooms with doors leading into the in-house pharmacy and laboratory, fully equipped with Idexx software, Idexx Lactocyte Dx Hematology Analyzer, Idexx VetLab Station, Idexx VetLyte Electrolyte Analyzer, LW Scientific Centrifuge, and Nikon Microscope. Beyond the laboratory is the treatment area encompassing the wet table with key equipment, such as AutoClave Sterilization and ClearVet CR Digital Radiography, near the x-ray area. Adjacent to the treatment area is the expansive surgical suite, containing Multiwave Locked System Laser Therapy, Univet Optics, Cardell Veterinary Monitor, Mindray Pule Oximeter, Luxar NovaPulse Surgical Laser, and gas anesthesia machine. Following the surgical suite is the doctor’s office next to the groom room and isolation ward. In a contained area is 1,637 square footage of space rented out for grooming services. In order to remain well organized while managing client data, this practice utilizes Cornerstone practice management software. All of the company owned assets, equipment, supplies, and client lists will be included in the sale.

Over the past five years, this veterinary practice has been able to achieve a compound annual growth rate (CAGR) of ~2.6%, from gross sales of $484K in 2018 to $550K by 2022 (& $580K in 2023). Cost of goods sold are estimated to be slightly below 30% after including laboratory expenses, translating to a gross margin of around 70%, which is on the top end of industry norms. Operating profits / net income, after normalization adjustments, are estimated to be ~12%-13%, slightly underperforming industry benchmarks. Annual discretionary free cash flows (i.e. adjusted EBITDA) potentially available to a new owner is estimated to be 25% of revenues or ±$130K, which is sufficient enough for a new owner to service any debt and receive a remuneration package. The estimated value range from this practice is between $175K and $275K(or 32% to 50% of the Actual Sales in 2022 of ~$532K). 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 Animal Care Hospital LLC as of December 31, 2022 (but with 2023 partial results factored in) is around $220K. (Note: this is only for guidance it is not RedTire's suggested price point)