Five things to consider when looking to buy a new vet, dental or medical practice
Investing in a veterinary, medical, or dental practice? You’re no doubt doing your research and we hope to be able to share some information of value with you. At MediPro we are in the business of working with investors, doctors, dentists, veterinarians, and healthcare practitioners to ensure that the financial side of their investment is sound and secure. Please read on to find out more about some of the most important things to consider when buying a new veterinary, dental or medical practice.
If you’re looking to buy or just want to know more about finance, contact us at MediPro Capital for specialised lending for medical practitioners, dentists, and vets. You can reach us on 1300 375 626 or get in touch with us online.
Consider the role this investment is going to play in your wider business model
Buying a medical practice (or a dental practice, or a veterinary practice) is no different from any other investment. You need to consider how this investment is going to factor into your other investments and what impact it will have on your tax, your cash flow and your financial wellbeing. You don’t want this asset to draw on too much of your resources, but at the same time, if you are looking for an asset to operate at a loss, then consider this as well.
As part of your due diligence, you need to look at the profit and loss statements and consider the financial performance of this practice in the past. Consider how it has been managed and think about what you are going to be doing with the practice. Will you target a niche area? Are you looking to refurbish it? Ensure you have considered all the options.
Think about your finances
Buying a commercial premises requires a loan or capital to invest. At MediPro we are in the business of providing financial products for doctors, vets, and dental professionals. These loans are offered at industry-specific rates and are structured in such a way as to be beneficial to people in your professional capacity. When buying a practice, you need to look at interest rates, early loan termination fees, loan structure, benefits and more. We can help you navigate the financial side of things and ensure you have the right financial product, so your new investment is an asset, not a hassle.
Research the area you are buying in carefully
Part of buying a new practice involves researching the area you are looking to buy in. This is because you want to ensure that there is sufficient business coming into the practice to make this a viable investment. Spend some time observing the practice on a normal day. Speak to people in the area about the practice and find out if they know about it and if they visit it. Read reviews online and look at statistics and facts about the population in that suburb or town.
Speak to a health service recruiter to ensure you will be able to staff your practice
You need to know that doctors, vets, or dentists are going to want to work in your practice. Contact local heath service recruiters in the area of your practice and find out how they feel about the practice. Is it somewhere that practitioners are happy to work and to stay in? Get a feel for how the practice is viewed because if it has a bad reputation, it can be difficult to turn this around.
Develop a point of difference
The last thing you need to consider when purchasing a new practice is whether you are going to be able to stand out. There’s a lot of competition out there, and it’s important to stand out among the crowd. Think about targeting a particular niche, or offering a loyalty discount.
When you are thinking about investing in a medical, veterinary or dental practice, call us at MediPro for specialised lending for medical practitioners, dentists, and vets. You can reach us on 1300 375 626 or get in touch with us online.