Practice Sales

Interview Questions for Every Veterinary Practice Role

Businesses across the country are struggling with staffing issues and the veterinary world is NO exception. During the pre-pandemic years finding great staff was a challenge, but since the pandemic began finding and retaining great staff has become a tumultuous experience. What follows are some interview questions that have helped veterinarians and their office managers sift through potential candidates – when you can get candidates. And the increased competition for workers has made this an employee-driven vs. employer-driven market. You’ve got to know your budget and get clear on what additional perks or benefits you may be able to offer in this now highly-competitive hiring process.

General Questions for Every Role – Veterinarians, Vet Techs, Vet Assistants, Office Managers, and Front Office

1. What are you looking for in a team and an office?
2. What does self-motivation mean to you?
3. What in particular motivates you?
4. How do you organize your day?
5. In a perfect world, how many hours per day and per week would you like to work?
6. How do you deal with conflict in the workplace? Describe a specific situation and how you dealt with it. Would you do anything differently now that you have had time to reflect?
7. How would the previous veterinarian you were employed by describe you if I were to call him/her? What about the other team members, what would they say? Would they say you were on time every day? Easy to get along with? Fun? Great with the patients and the clients?
8. What do you think are your greatest strengths? And what are your greatest challenges?
9. Describe a situation when a client was upset and describe what you did to rectify the situation or help.
10. What are three things you liked most about your last two positions/offices? What are three things you would have changed and why?
11. Describe a great day at the office.
12. What work situations, tasks, or duties cause you stress?
13. Where would you like to see yourself in two years? Where would you like to see yourself in five years?
14. If you weren’t in the veterinary field, what would you be doing? What are you most passionate about?
15. What qualities in a person do you think are important for this position?
16. How would you set the pay scale for this position? What qualifying events or skills would warrant a different pay scale or increase in compensation?
17. What do you think a bonus should be based on?
18. What benefits are most meaningful to you?
19. What have you learned during the pandemic? How did it affect your short and long-term goals?
20. Did you work remotely? Was that easy or difficult for you? How do you feel about being back in an office, working with a team, and having interaction with patients and clients all day?

Additional Questions for Specific Roles

Vet Assistant
1. Have you been involved with placing veterinary supply orders? Explain your process.
2. What have you normally done during downtime?
3. How do you talk with clients about recommended treatment for their pets? Provide an example.
4. What are your most/least favorite procedures?
5. Describe the perfect veterinarian to assist and why?

Office/Practice Manager

1. How would you describe your management style?
2. What are your thoughts about micro-managing?
3. What steps do you take when you realize that you have made a hiring mistake?
4. Do you enjoy being at the front desk or in an office behind the scenes?
5. What do you bring to a team to keep them motivated and smiling?
6. In your previous office did you have full responsibility for the accounts receivable? What was your average production to collection ratio?
7. In your previous office, how would the staff describe you?

Front Office

1. How do you welcome new clients and patients to the practice?
2. What have your past responsibilities been? Which did you enjoy most?
3. How do you talk with clients about treatment costs? Provide an exact example of presenting treatment and negotiating a financial arrangement.
4. How do you describe a perfect schedule and how do you create it?
5. How do you fill any last-minute appointments?
6. Do you enjoy scheduling? What do you enjoy about it?

Veterinarian

1. What does a perfect schedule look like to you?
2. How do you encourage clients to accept treatment for their pets?
3. How do you ask for referrals from existing clients?
4. What do you do at a new patient/client appointment?
5. What types of procedures do you like to do?
6. Are you comfortable being the only veterinarian working in the office?
7. How would your current/past veterinary assistant describe you? How would an owner veterinarian or office manager describe you?
8. What are your goals for each patient and each day?

Who Should be on Your Exit-Planning Team?

By Corey Young, MBA, CVA 

Let’s discuss the best approach:

• Financial Planner. A financial planner helps clients meet their current money needs and long-term financial goals. They use a structured process to guide clients toward prudent financial decisions to maximize their potential for attaining life goals. Using their knowledge of personal finance, taxes, budgeting, and investments—combined with analytical tools and data that can illustrate potential outcomes—financial planners make recommendations, which help clients make informed decisions.
• CPA. Almost everyone reading this article has a CPA. While they are an invaluable resource, over-relying on them on a consultant basis can put them in a conflicting role when it comes time to exit your business. Per Investopedia, “Although some CPA firms serve as business consultants, the consulting role has been under scrutiny following the Enron scandal where Arthur Andersen simultaneously provided audit and consulting services which affected its ability to maintain independence in its audit duties If the CPA firm is auditing the same company that the firm also does consulting work for, then there is a conflict of interest. This conflict voids the CPA firm’s independence for multiple reasons, including: (1) the CPA firm would be auditing its own work or the work the firm suggested, and (2) the CPA firm may be pressured into unduly giving a positive (unmodified) audit opinion so as not to jeopardize the consulting revenue the firm receives from the client.”
• Transition Consultant. A business transition consultant helps a business owner assess the current asset value of the business and establish its attractiveness to various buyers. A transition consultant also helps owners assess where they’re at motivationally, as professionals and business owners in their readiness to sell. The consultant then works together with practice owners to develop exit strategies that could begin in the immediate future or develop over a couple of decades. Frequently, transition consultants also serve as the broker of practice sales. This is a real plus because their work in the open market makes their recommendations much more meaningful. A widely accepted recommendation is to engage a transition consultant long before you are ready to sell. Analogous to this recommendation is diagnosis and prevention. Waiting to contact a broker when you are ready to sell is considered emergency care.
• Attorney(s). Two different types of attorneys need to be engaged at some point during a well-developed exit strategy. First, an estate planning attorney to help set up wills and trusts. Second, an experienced transition attorney when the time comes to exit the business.
• Banker. Developing a solid relationship with a banker can open doors of possibility both currently and into the future. Because of banks’ (mostly outdated IMO) hiring and retention policies, bankers tend to move around quite a bit. My recommendation is to focus on the banker more than the bank.

Who do you currently have on your team?

Looking at Veterinary Practice Ownership in 2022

By Rod Johnston, MBA, CMA

Happy New Year! We want to wish you a happy and healthy 2022. As the new year gets underway, we have to look at some trends that will continue into the new year, some events that may be slowing down, and other news happening in the veterinary industry. Here are a few things to think about:

Veterinary Employee Shortage – This has been going on for several years now and there doesn’t appear to be an end in sight. There’s nothing that can happen overnight to help put an end to the shortage. Veterinary schools can’t graduate students fast enough and there are not any new veterinary schools that are starting up. Corporates are offering large bonuses for veterinary associates to join their practices. It’s tough for individual practice owners to compete for associates.

Burnout and Compassion Fatigue – This is one of the causes of labor shortage amongst veterinarians. Long work hours and days have been magnified with Covid. People are working from home and pay more attention to their animals. When they see their pet acting strangely, they immediately make an appointment with their veterinarian. Even before Covid, veterinarians typically face burnout after 5 to 10 years with some of them leaving the profession.

Veterinary Telemedicine – Telemedicine has become prominent in human medicine. Some health plans are even built around not going into the doctor’s office. There are companies offering telemedicine in the veterinary space. Will this become as prominent as it is in human medicine? Time will tell.

Corporate Buyer Consolidation – There are hundreds of groups buying veterinary practices paying exorbitant prices. Some of these groups have been purchased by larger groups. This buyer consolidation will continue for the next several years. What that may mean is less buyer competition for practices which may mean corporate buyers paying less for practices in the coming years.

Resurgence of Individual Practice Owners – This is a prediction more than based on fact. But, I believe individual veterinarians will get tired of working for corporate owners and will thus look to go out on their own either opening their own new practice or purchasing an existing practice. It will be a good and healthy thing for the veterinary industry as well as for the pet-owning public.

Inflation and its Impact on Veterinary Practices – I would say that inflation is coming, but we’re already seeing an increase in prices at the grocery store, gas stations, and other places. What this historically has meant for pet owners is that they think twice before they go in for what may be deemed by the general public as elective appointments such as canine checkups, consultations, and elective procedures. They will still have the non-elective procedures done when they are required.

These are just a few points to ponder going into the new year. We wish you a happy and healthy new year!

Why Practices Don’t Sell

By Megan Urban, Practice Transition Consultant

Your practice has successfully worked for you for many years so why isn’t it selling? It could be the transition consultant (broker) you are using, or it could be your practice.
Working with an experienced transition consultant is important. We know where and how to advertise. It doesn’t work to simply advertise on a website. You will want marketing and advertising in schools across the country, dental journals, and county/state societies. An experienced consultant already has a list of potential buyers for your area or type and may have other creative grassroots ideas to find the right buyer.
The right consultant cares about you, your team, practice, and goals. It shouldn’t be just about the commission money. Your consultant should be responsive and professional to potential buyers and you.
A comprehensive valuation and prospectus are important. If you or your consultant price your practice too high, it can be offensive to potential buyers, and they won’t feel comfortable offering a lower price. Even if you find a buyer willing to overpay for your practice, the bank will not finance 100%, which means you have to become a bank for a specific amount of the purchase price.
Sometimes even when you have the right consultant your practice may have other reasons for not selling. Sometimes it’s simply not finding the right dentist at the right time. Often it is because your location is not desirable to new buyers and their families. Sometimes it’s the size of the practice. We all know 3 op practices can be very efficient and profitable, but many buyers want 4 to 6 ops, especially to add more hygiene.
Declining collections the last 3 years or simply low collections can be a deterrent to potential buyers and banks unless you have a reason. They understand more time off due to vacation or health issues. Low new patient count, too many PPOs with low reimbursement, and low hygiene production can be concerning to buyers.
Most buyers understand they may need to update style or equipment and technology, but if it’s a lot of cost and effort, they may keep looking for a better practice.
If your practice falls into any of these areas of concern, it will take more time than the average to sell. Lowering the price may help, but if there is no interest, it’s not the price that’s the problem. Don’t give up or get mad, just understand that while your practice may have been perfect for you, it can be a while to find the right buyer.

Top 5 Fears Veterinarians Have About Practice Ownership (And How to Overcome Them)

By Rod Johnston MBA, CMA, and Jim Vander Mey, CPA, ABI

There are many advantages to owning a veterinary practice over being an associate veterinarian and not owning a practice.  For one, the average veterinary practice owner makes approximately 20% more in income than an associate veterinarian working for someone else.  A veterinary practice owner also gets to choose what procedures he wants to perform and what type of animals he or she wants to work on.  Heck, they even get to choose which animals they want to work on.  They can also choose their own hours, pick the days they want to work, and how much vacation they want to take.  So, why aren’t veterinary associates owning practices?  What are they afraid of?  Here are a few fears we have encountered and how to overcome those fears:

1. Fear of the unknown – Associates feel they don’t have the experience in owning a practice.  They haven’t managed staff.  They haven’t kept financial records.  They don’t know what marketing to put in place.  They don’t know what benefits to give employees, how to hire or fire employees, or even how to balance a checkbook.
   Fear not, you don’t have to know everything at once.  You know how to do veterinary medicine.  That’s the first step in owning a practice.  You have a few years of experience working as an associate in a veterinary practice.  You’ve observed the owner working with and managing staff.  You may have experience leading a team in school, playing sports, etc.  These are all examples of good experience in handling staff.  You don’t have to know how to keep books right away.   We suggest getting a veterinary bookkeeper and then getting educated on reading financial statements.  This can happen over time.  Bottom line is if you are good at what you do and willing to learn the other parts of practice ownership, you’ll be just fine.
2. Fear of taking on more Debt – Read Robert Kiyosaki’s book, “Rich Dad, Poor Dad”.  Not all debt is created equal.  There is good debt such as student loans and practice debt that helps generate an income and there is bad debt such as credit card debt where you just borrowed money because you wanted something.  Practice debt used to buy a practice that will help you make more money and build equity in an asset (the practice) is a positive thing.  As long as it’s a good practice with good cash flow, you’ll be money ahead in the long run.
3. Fear of the Corporate Giants – Don’t fear the corporate giants.  They have their own niche targeting bargain shoppers and lemmings who follow the crowd.   They also have a high turnover in their staff and doctors.  You will provide excellent service with the same staff and veterinarian that the clients will see every time they come to your office.  In a corporate environment, they’re not sure who they’re going to get.
4. Fear of not knowing what to look for – This is a valid concern.  You can educate yourself in a number of ways.  There are great resources via podcasts, YouTube, etc., that can help you know what to look for.  Quite simply, you start by looking at your desired location, then look at the cash flow of the practice and after that, you can get into the details.   There are consultants and brokers who can also help you with reviewing practices.  Identify your team that will help you overcome this fear.
5. Fear of a recession – Recessions happen, typically every 8 to 10 years and last 10 to 12 months.  You cannot avoid recessions or downturns in the economy, it’s part of life.  But, during recessions, employees typically get laid off from work.  If you own your own practice, you’re probably not going to fire yourself.  You’ll probably keep yourself employed and busy.  Owning a practice is a deterrent from getting laid off during a recession.

These are a few of the fears that we’ve seen over the years, and there are others as well.  But, the best thing you can do is educate yourself and talk to practice owners, brokers and bankers.  Seek advice and counsel from everyone you can.   This will help you make a wise decision in moving forward with practice ownership.