Dr. Scott Spaulding, president of Mixed Animal Veterinary Associates North America (MAVANA), spoke with the Journal of the American Veterinary Medical Association (JAVMA) recently about veterinary practice mergers as a new way of doing business in the veterinary industry:
Dr. Spaulding became motivated to start MAVANA, in part, after watching corporations buy up veterinary practices for less than he thought they were worth. For example, he said VCA Antech was paying owners about five to six times their recent annual earnings, but when he looked at VCA’s valuation on Wall Street, it was 30 times the company’s annual earnings.
“I thought, ‘Why can’t shareholder veterinarians realize better valuations for their practices?’ We might not go from five times to 30 times valuation overnight, but what about to eight or 10 times? I’ve seen so many veterinarians sell for very poor valuations, I thought there has got to be opportunity there,” he said.
Read the full article from JAVMA News and the March 1, 2017 issue of JAVMA — Veterinary practice mergers: the new way of doing business?