Merging Veterinarian Practices – What to Expect
Do you own and operate a veterinary practice in the Bay Area of California? Are you considering merging with another practice? Doing so may be a great opportunity to create business synergies and to grow your practice. At the same time, you need to be properly prepared. Mergers are complicated—especially for professional practices. Here, our Bay Area business attorney for veterinary practices highlights key things to know about merging veterinarian practices in California.
The Foundation of a Merger: Comprehensive Due Diligence
A business merger is the combination of two or more companies into a single entity. In California, merging veterinary practices must begin with comprehensive due diligence. Among other things, the due diligence process typically involves:
- A detailed assessment of financial records
- A comprehensive review of client databases
- An assessment of human capital, including any employee contracts and benefits
- Evaluation of all existing legal obligations for each practice
- An understanding of compensation structures within the veterinary practice
Notably, the core purpose of due diligence is to uncover all potential risks and liabilities. It will help veterinary practice owners to consider the feasibility—and desirability—of the merger. Due diligence also typically includes reviewing each practice’s equipment to assess compatibility, vendor and customer key contracts.
Develop a Plan for Veterinary Practice Integration
Developing a strategic integration plan is crucial for merging veterinary practices successfully in California. The plan should outline how to combine operations, staff, and services in a phased approach to minimize disruption. Key elements often include aligning veterinarian medical protocols, unifying software systems, consolidating suppliers, and determining staff roles and responsibilities.
Be Prepared to Identify and Take Advantage of Operational Synergies
Successful mergers capitalize on operational synergies that will enhance efficiency and reduce costs. For veterinary practices in California, this might involve consolidating purchases to leverage better pricing, merging client lists to expand the customer base, and integrating technological resources to improve service offerings. In some cases, a merged veterinary practice may be able to share an office lease. Ultimately, the goal is a more efficient single veterinary practice.
Proactively Communicate with Clients (Transparency is Key)
A veterinary practice in California is only as strong as its relationships with its clients. Client acquisition can be expensive. It is crucial that the merging practices can continue providing high quality service to existing clients. Among other things, this means putting an emphasis on proactive communication. Transparency helps maintain trust and manage client expectations. You will need to obtain clients’ informed consent about the upcoming changes and make sure that they understand how they will benefit from improved facilities, expanded services, and/or better availability. If clients do raise concerns, be sure that they are addressed promptly.
Understand and Comply With all California Regulations
Navigating regulatory compliance is essential for veterinary practice mergers in California. This includes following all requirements of the California Veterinary Medicine Practice Act, local business licensing requirements, and relevant labor/employment laws. Compliance with these regulations is an absolute must when merging veterinary practices. A business lawyer with experience working with veterinarian practices in California can help.
Contact Our Fremont, CA Business Lawyer for Veterinary Practices Today
Lynnette Ariathurai is a business attorney with extensive experience working with veterinary practices. If you have any questions or concerns about merging a veterinarian business, we are here to help. Contact us today for a confidential initial consultation. From our Fremont law office, we provide business services to veterinary practices across the Bay Area.