This small animal practice was owned and operated by two partners in their mid 30’s. The partners were classmates at veterinary school who met and eventually married. The practice had been in operation for almost 30 years and they had owned the practice for 6 years.
Approximately one year after graduation, these two young veterinarians borrowed $1,600,000 and acquired the practice and real estate. Their payment for the loan was a little over $13,000 per month. After six years of their management, the yearly practice revenue was $1,100,000 and revenue had increased over $100,000 in the past year. After paying the note payments and spending approximately $40,000 per year for building improvements, the owners were collectively taking home approximately $225,000 per year.
While owning the practice, their family had grown and they now had several children. Not wanting someone else to rear their children, one parent stayed home with the children each day. The practice was open six days per week. He worked four days and she worked the other two. They rarely had time together. The lack of family time along with the huge debt and large monthly payments became unsustainable. They came to the conclusion that they needed to sell their practice, get out of debt and improve their family life.