Author: omniadmin

If you’re in it because you love being a veterinarian and love helping patients and not necessarily in it to make the big bucks, you can really practice almost anywhere. A lot of buyers seem to want the downtown metropolitan practice thinking it’s a great place to practice since there are so many potential patients and you can live the urban lifestyle.  We’ve helped doctors who absolutely wanted to be in a metropolitan area, even though the demographics made no sense whatsoever, who then started a practice and did quite well.  One doctor that we helped always dreamed of owning a practice in a particular city.  He went for it and is successful.  And we have seen others want a practice in a certain area, and although the numbers didn’t make sense, they did it anyway and were successful.

Some of you are buying a practice because you want to make a lot of money, in which case, further analysis and discussion is needed. The failure rate for veterinarians is somewhere around .015%.  If you’re buying an existing practice and the practice already has good cash flow that you’ve identified, you can purchase the practice and have success almost no matter where it is. If it’s a poor performing practice, you would need to examine if the poor performance is because of the location, the management, or something else.  If you want to buy an existing practice and are looking for an opportunity to grow and have lower overhead, I would suggest looking outside of the metropolitan areas.  Those areas have less competition, wages and rent are lower and it’s easier to grow those practices.  And if you are considering doing a startup practice, the same rules apply.  Look for a location with good demographics outside of metropolitan areas.  Of course, if you absolutely want to be in a metropolitan area, don’t be afraid to go for it.  Just look closely at the numbers and hire a good veterinarian practice or real estate broker to help you out. 

One of the advantages of working with Omni is we have both practice brokers and real estate brokers to help you traverse the ownership trail in any way we can.  Just give us a call at 877-866-6053 or email info@omnipg-vet.com and we’ll be happy to help get you started.

KENMORE, WA – Omni Practice Group is happy to announce the merger of its business with Reasor Professional Dental Services. The merger has been effective since January 1, 2018.

“Our combined years of service and diverse knowledge and expertise will allow us to provide an even greater service to our clients,” says Rod Johnston, Principal Broker at Omni Practice Group.

Omni has had a strong presence in the Northwest since 2004 and is based in Washington State.  Reasor Transitions is based in Oregon and has been providing transition services to the Northwest since about the same time. Omni Practice Group is now licensed to sell practices and provide real estate services in Washington, Oregon, Alaska, Idaho, California, Arizona, Montana and Nevada.  Buck Reasor will continue to work under the joint company’s name, Omni Practice Group. Omni Practice Group is excited to have Buck Reasor join their team.

More information about Omni Practice Group can be found here: omni-pg.com.

Contact:
Rod Johnston, MBA, CMA
Omni Practice Group
6141 Bothell Way NE #301, Kenmore, WA 98028
(877) 866-6053

Cash is king is an old adage used to describe one of the keys to success in business as well as personal finances.  Cash is essentially physical money or liquidity you have available.  While cash may be king when it comes to having cash on hand, another vitally important ingredient to the success of a practice is Cash Flow.  Cash Flow is the amount of money you have available in a given time period after you have paid all of your expenses (payroll, lab, supplies, debt, etc.).

When analyzing a practice, how do you know how much true cash flow the practice has available? You cannot simply look at a practice’s tax return or a profit and loss statement and know how much cash flow the practice has.  There are a number of steps that someone evaluating a practice would take into consideration when determining the correct cash flow.  Those steps are as follows:

1. Start with the Net Income of the practice.  This is the total revenue or collections minus the total expenses.
2. Add back the owner’s salary and any taxes associated with the owner’s salary.
3. Go through the expenses and “add back” those items that are non-essential to the practice. These are expenses that are for extra-curricular or out of the ordinary expenses. These typically include travel, staff meetings, interest, depreciation, owner life insurance, etc.
4. Calculate what your debt service payments will be by using a mortgage amortization calculator.  You can use bankrate.com or another online calculator.  Use a conservative interest rate based on current market rates for practice loans and a 7-year term.  Subtract the debt service payments from the above 3 items.
5. The result will be the cash flow to the practice after debt service based on the current state of the practice. This will be how much is available to a potential buyer for his/her personal salary, upgrades, updates, etc.

If you need help analyzing the cash flow of a practice, or how you can improve a practice, you can call us anytime for a free consultation. We can be reached at (877) 866-6053 or email at info@omni-pg.com. ​

​Correction: In a previous version of this post, Net Income was incorrectly labeled Gross Income in the calculation of Cash Flow.  We apologize for the error and any confusion.

Brought to you by Omni Veterinary Practice Group, Bank of America Practice Solutions and Patterson Veterinary Practice Solutions

Topics Covered:

• What does today’s marketplace look like for selling your veterinary practice?
• Tax strategies for a successful transition of your practice into retirement
• What should you take to prepare for a proper transition of your practice?
• What legal issues should you be aware of in a transition?

9 am to 5 pm. Dinner will follow shortly afterward.

Attendance cost for you and your significant other: $300
Refreshments, lunch, and dinner included.
Deluxe Lodge Guestroom Negotiated rate available for attendees.

More info & registration: https://bit.ly/practicefoundations

If you’re thinking of buying another practice, here are some benchmarks to consider.  Note: there may be special exceptions, but this will give you a more stress-free acquisition.

1.  Your current practice should be producing between $80,000 and $100,000 per month.
2.  Your hygiene program should have production at 25% to 30% of total collections (for general dental practices).
3.  You should be getting a new patient flow of 20+ new patients per month.
4.  You should have a stable staff with little to no turnover and a good working team.
5.  Systems should be in place so your practice can run without you.    
6.  You have mastered dentistry where you can do most procedures and not refer much work out.
7.  Your finances are in good order.   You have paid your loans down and you have savings. (See Wikipedia for the definition of savings.)
8.  Your spouse or significant other is okay with you opening another location.  Realize that two locations = double the work, potential less spouse and family time.
9.  You know how to read financial statements.  With multiple locations, you now own a business and need to know how to run one.
10.  Your bank, financial planner, accountant and other advisors are in agreement that it would be a good idea to start or buy another location.

By following these guidelines, you will save yourself, your family, bankers, attorneys, lawyers and others a lot of grief should you jump into another location too soon.  We are always happy to help you assess your situation.  Call us anytime, for any reason at no charge- (877) 866-6053.