Adding a partner to your existing veterinary practice presents some truly unique benefits. Both doctors have much to gain by developing a synergistic relationship built around the practice, which will allow it to provide for the needs of both doctors and their respective families for years to come. Here are the ten reasons why adding a partner can be a good idea.
1. Increase Practice Profit- A new partner's added production will help decrease the overhead, as a percentage of gross, and increase profitability. A partner can add production by treating excess patients that were formely untreated or offering previously unprovided services. No longer is your income and your profitability dependent on your soul production efforts.
2. Share the Work Load - A partner could allow a more flexible schedule with the comfort of knowing that the patients are being cared for and the overhead is being covered. Partnership makes it possible to decrease one's stress and improve one's quality of life.
3. Expand Hours and Days - A partner could expand accesability by helping the practice be open more days and more hours per week.
4. Increase Practice Value - A partner's added productivity could increase the overall value of the practice. Often, members of a team, working together, can build a much greater practice than either would have done independently. So much growth can take place, that the value of the retained half of the practice can be worth as much as the entire practice originally.
5. Add a Committed Revenue Generator - A well structured partnership arrangement generates a financially, and emotionally, committed partner who will be motivated to build and maintain a profitable practice. The new owner's commitment level enhances the financial security of both partners.
6. Increase Equity Growth - Both partners will share equally in the increased value of the equity as the veterinary practice grows. Practice equity will come from both debt equity and growth equity over the next ten or fifteen years.
7. Increase Income By Providing Additional Services - A partner can offer additional services to your patient base. Whether the new partner already has the skills to provide new services or needs to learn, those additional services can increase profit with little increase in practice overhead costs. Unlike associates, partners are motivated to learn additional services that are not already offered.
8. Extract Some Practice Equity - Adding a partner can provide the former sole owner to extract some of the practice's equity but not retire. Pulling out some of the practice's equity can be achieved from selling part of the practice. The orignal owner will still maintain an ongoing income stream and receive profits, all while building future equity from the practice's increase in value. This increase in value can be realized when the remaining part of the practice is sold.
9. An Eventual Buyer For the Rest of Your Practice - When you partner with another doctor, you sell part of your practice and keep part. One huge advantage from partnership is the ability to know, in advance, that an equitably arranged and predetermined buyout is in place. When you decide to sell the remainder of your practice for health, age, or financial reasons, this will provide security and peace of mind for both you and your family.
10. Improve Your Life - There is an old saying, while the cats away the mice will play. No one works the business, tends to the details, stays the extra hours, or cares as much about the business as does an owner. Having a partner in your practice means that the cat is never away. That allows you to take weekends off, enjoy long vacations, visit children and grandchildren, and otherwise appreciate the efforts of your long labor. A committed partner takes you from constant worry to a more satisfied quality of life.