Problem

A team of two accomplished veterinarians and a business investor identified a promising opportunity to acquire an existing veterinary practice as well as its accompanying real estate in a prime location in Santa Monica, California. This opportunity came with a few challenges the group had to face:
‍

• The current owner operated the practice with limited hours of operation and underpriced services, which resulted in the business having less than optimal financial performance.
  ‍
• The property, despite its valuable prime location, was outdated and required significant updates to meet the high standards of the area.

Solution

The group was introduced to Firstrust Bank by an experienced veterinary industry referral due to Firstrust’s specialized solutions for veterinary financing.  The group met with the Firstrust team to understand the vision, assess the customer base, and review the business plan.  Upon a comprehensive review of the strategy and the opportunity at hand, the team collaborated on a proposal inclusive of:
‍

• Operational Revamp: Extend hours for general practice services and introduce urgent care facilities to maximize the practice’s financial potential.
  ‍
• Facility Revitalization: Renovate the property into a state-of-the-art veterinary facility to meet both the current and future needs of the business, as well as the high standards of the surrounding area and customer base.

Results

The partnership resulted in the successful acquisition and transformation of the business.  Through financial guidance and support, the ownership group was able to complete the acquisition and renovations of both the business and the property.
‍

• The ownership group received a $2.8 million loan for the real estate purchase and an additional $1.6 million as a line of credit to help fund the renovations.

Conclusion

The financial solutions and specialized guidance provided by Firstrust helped the ownership group take the business opportunity at hand and turn it into reality. Having an experienced financial partner in their corner with a deep understanding of the industry, the unique challenges, and the promising opportunities played a crucial role in getting the deal to the finish line. A once-underperforming veterinary business was transformed into a thriving sustainable practice.