Fully describe the business's activities?
Long established Veterinarian practice in popular Garden Route town, with full surgery, digital radio-graphing and in-house blood-work and laboratory facilities
How long has the business been established?
The owner established the business in June 2004.
How long has the owner had the business?
How does the business operate on a daily basis?
The resident Veterinarian is assisted by a very experienced receptionist/assistant. A casual general assistant also assists with maintenance of the premises etc and a casual cleaner are in place.
How are the clients attracted to the business?
Long serving the community of this town. Well situated on main street adjacent to the highway. Full veterinary requirements inclusive of surgery. Strong Word of Mouth endorsement.
What Advertising/Marketing is carried out?
There is a well followed and interesting web site and face Book page, and advertisements in local newspaper, as well as strong Word of Mouth endorsement.
What competition exists?
There are other practices in the town each with their own following. However, the town is showing explosive growth the past few years and as a result the work load of all of the vets is growing. Many retirees who have small companion animals, as well as normal households. The practice also gets clients from the local inland farming community when they require veterinarian services.
What are the seasonal trends?
Summer season is always busier than winter, and holiday periods such as Easter also show increased turnover.
Is the business VAT Registered?
What VAT documentation is on file?
Up to date
Are there up-to-date Management Accounts available?
What Balance Sheet and Income Statements are available?
Up to date
What percentage of the business is cash/credit?
There is a high percentage of credit card payments as is the nature of the Vet Practice.
What is the total staff complement?
3 with Owner. A General Assistant is brought in on a casual basis as and when required, as well as a casual Cleaner as required.
Give a breakdown of staff/ functions/ length of service?
The main Receptionist / Assistant has 6 years with this practice and 30 years of veterinary related experience. A second receptionist is also brought in on a part time basis when required. The General Assistant and the Cleaner are casual employees.
Do any receive special perks or incentives?
An incentive is in place, details of which will be made known to the Buyer at Due Diligence process.
How involved is the Owner in running the business?
Full time on a daily basis.
When does the current lease end?
The practice itself, as well as an attached flat, and also a house, are on the same premises and all owned by the Veterinary Practitioner. The Vet practice has its own front and separate rear entrance, and the opportunity exists for the Buyer to lease the flat or the house should they choose to do so. The practice will be given a 5 year lease at market related rental and subject to negotiation.
Is there an option of renewal & what period?
A 5 year period at least will be issued. If desired, a lease may be offered on the flat or house too.
What is the annual escalation %?
Subject to negotiation in region of 8%
What are the trading hours?
08-00 to 17-00 Monday to Friday
Who is the Owner/Landlord?
The Seller of the business is the Landlord.
Is a copy of the lease available?
A new lease will be granted to the Buyer.
Do you require a licence?
All required licenses are in place.
What lease deposit and/or other surety is required?
Subject to negotiation.
What are the main assets of the business?
Medical equipment of a comprehensive and a high standard as required for running a successful practice. Full surgery with Digital Radiographic and in-house blood-work as well as Lab equipment.
Are any items not included in the sale?
There are some personal affects and equipment that is not included in the sale, but the issued asset list indicates all the assets that are included. One laptop (which is not included in the asset list). There is a storage container on the premises which is not utilised by the practice itself and is not part of the agreement.
What is their overall condition?
All assets are maintained in good condition and serviced as and when required.
Do any require repairing?
How have they been valued ?
Owners second hand value.
Which assets are on lease/HP and with whom?
3 Xerox printers are on lease at R1K per month till 2010 and the lease covers all servicing and ink.
Will Seller settle or Buyer to take over?
Buyer should take over.
Are copies of agreements available?
Are they presently insured?
Well established practice with a loyal client base. Location is excellent on a busy main street of a bustling town, immediately adjacent to the N2 highway. There is exceptional growth within this town and many new domestic animals within the area, ensure that the Buyer will remain very busy. There is an established Vet shop in the town that may be included in the sale (Subject to negotiation).
There are no weaknesses known of.
There are opportunities to acquire the Vet shop, and also to retain the natural medications currently being sold. The Buyer will also receive many opportunities for outside work (especially farm work) as the area requires this facility.
No known threats exist.
What is the reason for the sale?
The current Veterinarian has built this practice into a lucrative business and has too many irons in the fire at present. The Seller wishes to pursue their interest within the veterinary nutritional field, and offer services that will not be in conflict with that of the Buyer. A restraint of trade to this effect will be in place. The Seller wishes to remain within this region offering supportive and complimentary medical treatment that will not impact upon the practice and its growth potential.
Why is this a good business?
This opportunity offers a quality of life sought after in this region, with a solid and lucrative income. This is a well established business that has been operating for many years. There is a solid and substantial client base. The region is showing exponential growth as new families arrive and retail and domestic sectors are growing rapidly. The current Practitioner will sign a Restraint of Trade that will ensure that there is no conflict of interest as they wish to remain in the area but not in general animal practice.
What is the price plus stock and the net profit?
The price for the Vet practice is R2.1 million, and it must be noted that the assets at second hand value are currently over R1Million. The approximate stock on hand within the practice is around R70K. The viability of the practice prior to Owners Drawings is in the region of R800K per annum.
Annual Turnover Amount between R 500 thousand and R 6 million