Twenty-one veterinary practices located in 10 states across the U.S. have merged to form Mixed Animal Veterinary Associates North America, Inc. (MAVANA). The merging practices have gross revenues topping $55 million. The merger transaction closed December 31, 2016, and operations began January 1, 2017. MAVANA unites outstanding mixed animal and equine practices to elevate shareholder practices’ ability to offer their clients state of the art veterinary care as well as mentorship and support to young veterinarians beginning their careers.
“MAVANA practices have the highest standards of care when it comes to medicine and surgery, and they are owned by veterinarians who put a high priority on running better managed veterinary practices,” says MAVANA President Dr. Scott Spaulding. “These owners place equal emphasis on business-related aspects of veterinary hospitals and the practice of veterinary medicine. We recognize change is coming to decades-old veterinary business models; we want to lead the way in developing new business models to benefit veterinary shareholders.”
The MAVANA model is built around each practice operating independently but benefiting from a corporate structure to deliver cost efficiencies, leverage economies of scale for improved purchasing power, offer more options for liquidity, and increase relevancy in the rapidly consolidating animal health industry while also delivering quality medicine. In the next five years, the goal is for 85 percent of practices’ administrative functions to be performed at the corporate level.
“The current model used to value and transact practices from one generation to the next is antiquated,” says Spaulding. “A system based on the true underlying value of the practice can be implemented to make succession to the next generation based on sound business principles.”
MAVANA is 95 percent veterinarian owned. The merger nets practices in California, Florida, Illinois, Michigan, Oregon, South Dakota, Texas, Washington, Wisconsin, and Wyoming, representing 105 full-time veterinarians.
The officers of MAVANA include: Spaulding, president and chairman of the board; Dr. John Bitter, executive vice president and vice president of development; Dr. Randy Bimes, vice president of operations; Mr. Hugh McCafferty, CPA, CGMA, chief financial officer; Mr. Kevin Foote, vice president of shareholder relations and corporate governance; Dr. Dan Haskins, secretary/treasurer; Dr. Leann Kuebelbeck, medical director; and Dr. Scott Hansen, vice president of strategic partners. In addition to Spaulding, Bitter, Bimes, and Foote, Dr. Scott Hay completes MAVANA’s five-member Board of Directors.
MAVANA legal counsel for this transaction is Mr. Stephen Tumbush of Husch Blackwell, LLP, in Madison, Wis.; accounting professional for the transaction is Owen E. McCafferty, CPA, Inc., Ponte Vedra Beach, Fla.