How do I check what diagnostic equipment a vet clinic owns versus leases?
Ask for a list of each machine with the contract, payment schedule and end terms for any that are leased or financed. Match the list to what you see in the clinic, since a machine that looks like an asset may carry payments you take on.
Start with the list. Ask the owner to name every diagnostic machine, such as imaging, bloodwork and monitoring equipment, and say whether it was bought outright, financed or leased. Then ask to see the paperwork for each one.
Read the contracts. Look at the remaining payments, the end date, what happens at the end, and whether the contract allows transfer to a new owner. Some require the lessor’s approval, and some carry penalties for ending early. Your lawyer should read them.
Check against the books. Your accountant can compare what you were told with the clinic’s financial statements and liabilities. A leased machine that is missing from the list but present in the payments is a signal worth following up. Finally, ask about condition and service. Request maintenance records and ask who repairs each machine. Find out how critical each one is, and what the clinic does when one is down. The answer shows how exposed the clinic is. Ask the owner to walk you through the last time a machine failed, how long it took to be repaired and what the clinic did in the meantime. The story shows the real dependence on each machine and whether a backup, loaner or referral arrangement exists.
Key takeaways
- List every machine and mark owned, financed or leased.
- Read each contract for payments, end terms and transfer rules.
- Match the list against the books and the clinic floor.
Related reading
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- GuideHow to buy a veterinary clinic in Alberta: licences, ownership rules and what transfers
- GuideHow to buy a veterinary clinic in British Columbia: licences, ownership rules and what transfers
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- GuideHow to buy a veterinary clinic in Newfoundland and Labrador: licences, ownership rules and what transfers
- GuideHow to buy a veterinary clinic in Nova Scotia: licences, ownership rules and what transfers
- GuideHow to buy a veterinary clinic in Prince Edward Island: licences, ownership rules and what transfers
- GuideHow to buy a veterinary clinic in Quebec: licences, ownership rules and what transfers
- GuideHow to buy a veterinary clinic in Saskatchewan: licences, ownership rules and what transfers
Sources
This answer is checked against primary sources. Links were last confirmed on the dates shown.
- 01Business Development Bank of CanadaGovernmentEquipment valuation: How to do it
- 02Business Development Bank of CanadaGovernmentHow to conduct due diligence when buying a business
- 03Business Development Bank of CanadaGovernmentWhat are the steps to buying a business?
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