Reviving the Dream: Considerations for Practice Ownership

Sponsored by PetSmart Veterinary Services

“The first thing that I always like to tell doctors when we're talking about ownership is that you do have options,” said Jennifer Bruns, DVM, MPVM, Senior Director of Vet Relations at PetSmart Veterinary Services. At the 2024 Atlantic City Fetch dvm360® conference, Bruns presented on the several pathways to practice ownership and stressed that there is no one-size-fits all approach to becoming an owner.

Key benefits of practice ownership

“Ownership drives higher job satisfaction,” said Bruns, who noted that practice owners experience less burnout and more fulfillment in their work compared to associate veterinarians.1 This increased job satisfaction not only supports mental well-being, but also helps with staff retention—both of which are key concerns in the veterinary industry. Additionally, ownership allows veterinarians to build equity, as their production contributes directly to their personal wealth.

Practice ownership models and key considerations

Veterinarians looking to own a practice have a wealth of options and ownership models to choose from. “You are the king [or] queen of your own world,” said Bruns. “You get to choose what you are going to do in that practice; you get to align your vision, mission, and values.”

The startup model allows veterinarians to build a practice from the ground up, and offers owners full control over design, operations, and practice values. However, it requires significant time investment and considerable financial capital. “You’re looking at a big, big financial loan,” said Bruns, who mentioned that some banks estimate a startup can cost between $2 to $3 million.1 Additionally, staff recruitment and client acquisition can drag out the business ramp up time. Once the practice is through its early stages, however, owners can operate more autonomously under this model.

Alternatively, the acquisition model allows veterinarians to purchase an existing practice, offering immediate revenue and an established client base. Because the practice is already in operation, this pathway is seen as less risky. Of course, owners should consider the competition they may face from other potential buyers, including corporate consolidators. Bruns also noted that, with this model, new owners often inherit the culture of the existing practice. This can create challenges in aligning staff and client expectations with the new owner’s vision.

Corporate and franchise models allow veterinarians to own or co-own a practice with the backing of a larger organization. These models usually involve less financial investment and risk, and the parent company can offer support. However, these options may limit the owner’s decision-making power and potential to build equity.

Ultimately, there is no right or wrong approach to ownership; aspiring practice owners must weigh their options to choose which model best aligns with their goals and values. “Stop, look up, and see what options are out there,” said Bruns.

Reference

1. Bruns, Jennifer. Reviving the Dream: Considerations for Practice Ownership. Presented at: Fetch dvm360® Conference; Atlantic City, New Jersey. October 14-16, 2024.