How do I check a vet clinic’s relationships with local breeders and shelters?
Ask the owner to name the breeders and shelters the clinic works with, what services it provides to each, and how the arrangement is written down. Then find out whether the relationship belongs to the clinic or to the owner personally.
Begin with the facts. Which groups send animals to the clinic, how often, and for what kind of work? A shelter that sends many animals for routine care is a different kind of relationship from a breeder who occasionally books a litter check. Ask for examples of the last few months of that work, and see how they are billed.
Then look at how the deal is held together. Is there a written agreement, a handshake, or a favour? If discounts or special terms exist, ask who agreed to them and whether the other side expects them to continue. Some relationships are warm because of a person, and may not survive a change of owner.
Finally, ask what the groups say about the clinic. With the seller’s consent, speak to one or two. Ask what they value, and whether they would continue. Be aware of how much of the clinic’s income these relationships supply, and whether the terms are fair to the clinic. Your accountant can read the figures with you. If those groups bring in animals that need extra care, ask who covers the cost when a client cannot pay, and whether the clinic has ever absorbed that cost without noting it.
Key takeaways
- List each breeder and shelter, the work done and how it is billed.
- Check whether any special terms are written down.
- Ask whether the relationship belongs to the clinic or to the owner.
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Sources
This answer is checked against primary sources. Links were last confirmed on the dates shown.
- 01Business Development Bank of CanadaGovernmentHow to conduct due diligence when buying a business
- 02Business Development Bank of CanadaGovernmentWhat are the steps to buying a business?
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