The buyer associates with a practice with a written plan to eventually purchase of all, or part, of the veterinary practice. The associate learns more about the veterinary practice, while gaining valuable clinical and business skills prior to assuming ownership.
Pre-Planning
Preplanning a transition prior to an association provides a road map that allows the parties to know where they are going before they begin their journey. Praxis provides agreements that allow the parties to know: how long the associateship will last, how the associate will be paid, when the associate will buy into the practice and become an owner, the price the owner will receive for the practice at the time of buy-in, whether the associate will be credited with any of the growth of the practice during the associateship, what percentage of the practice will the associate purchase, whether there will be owner financing and literally hundreds of other critical issues.
Earned Equity
An associate, with a properly drawn agreement, can earn “sweat equity” that will be credited toward the ultimate purchase price of the practice. Through Praxis’ unique Earned Equity Program, the price the associate ultimately pays for the practice can be reduced buy an agreed-upon percentage; based on how much the associate has contributed to the practice.
Learn New Skills
The associate can learn new veterinary medicine skills from the owner. Perhaps the owner performs a procedure that the associate does not. Observing this experienced mentor over a long period of time will eventually give the associate the confidence to add that procedure as part of his/her services. This acquisition of new skills would be beneficial to the patients and advantageous to the associate’s bottom line.
Practice Management
The owner can help the associate learn how to manage the business aspects of the practice. The owner will help the associate learn how to manage the business aspects of the practice. The owner will explain the financial, managerial and organizational techniques that have been successful in the past. The owner will also teach the associate the most effective way to create an environment where all members of the staff are valuable, effective, and supportive.
Introduction to Pet Owners
The owner can introduce the associate to the patient base. The best initial introduction of the associate is from the person to whom the pet owners have trusted with their veterinary care for decades; the seller. It is invaluable to have the seller express total confidence in the associates skills and abilities. That endorsement will be instrumental in the transferring of trust to the associate.