Buying a Practice? Your History and Clinics Are Key

By |October 29th, 2013|

Lenders take a hard look at personal credit scores and debts, a business’ cash flow and the asking price.
In today’s market, many veterinarians consider practice ownership an avenue to securing their financial future. There is security in being the boss, dictating medical protocols and having the long-term opportunity to be rewarded for your hard work and time. Often, the key question is not whether to own a practice, but instead how to accomplish the goal.
Lenders will ask some key questions as they consider financing a practice acquisition. A lender will review seven primary items related to the individual borrower as well as the practice. They are personal credit score, personal debt obligations, personal liquidity, business and personal collateral, experience, business cash flow, and whether the purchase price is supported by standard business valuations.
Credit Score and Debt Obligations
These individual factors are not influenced by the practice targeted for purchase. Potential practice owners can start to build these pieces of their resumes […]