Background:

‍A veterinarian and her husband wanted to purchase a veterinary practice. The veterinarian graduated from the University of Pennsylvania Veterinary School and has worked at several veterinary practices over the course of 15 years. Her husband is not a veterinarian, but as a co-owner, will be managing the business side of the practice.

Over a course of two years, and in two instances, they had verbal agreements to buy practices that ultimately sold to corporate buyers for higher prices than they were offering. The doctor had worked at both practices and spent considerable time negotiating with the owners, only to be let down.
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Opportunity:

‍The doctor and her husband finally had the opportunity to acquire two small single DVM practices, only 11 miles apart. The first practice is a small veterinary hospital owned by a veterinarian who is ready to retire. The second practice was closed, but has space for two veterinarians and is equipped to perform operations. The seller lives on the second floor above the practice and is willing to lease the hospital space. The seller is also interested in working in the practice one day a week.
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Business Goals:

‍The veterinarian has commitments from several experienced DVMs, a certified practice manager, and other staff members who are willing to join them immediately and will be available for both locations. Her husband has banking experience and will be responsible for marketing, accounting and legal.

Along with the experienced staff, they have put together a comprehensive digital marketing plan and have many clients from her former clinic reaching out to her and wanting to see her.

It is the intention to rebrand both locations in the near future and to use the new brand to expand to additional locations in the future.
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Financing Obstacle:

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Because this is their first practice, they both knew that obtaining financing for two underperforming practices would be difficult.
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Firstrust Solution:

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The veterinarian and her husband were referred to Firstrust Bank by a business associate knowing how experienced the bank is in veterinary lending. The Relationship Manager at Firstrust met with them, listened to their story and reviewed the financial information.

The loan had a lot of strengths tied to it, which included both practices being purchased at a favorable price, strong personal guarantees and good liquidity by both the vet and her husband. The practices are located in a good area and the doctor has a dedicated pet-owner following along with experienced staff ready to join her.

Firstrust approved a $360,000 commercial real estate loan, $440,00 term loan to purchase practice assets and a $200,000 business line of credit for working capital.

All credit, terms and conditions are subject to individual review and approval.
FT-591-021423