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April 15, 2010

 

 Profitability estimator available from NCVEI

posted April 1, 2010 
 

The National Commission on Veterinary Economic Issues and VetPartners have released a new tool to estimate the profitability of practices.

"Profitability is the one single metric that allows business owners to judge the level of their economic success," said Dr. Karen E. Felsted, NCVEI chief executive officer. "Unfortunately, most practice owners don't get financial reports that give them this information."

The NCVEI and VetPartners, an association of management consultants, collaborated on the design of the profitability estimator.

"In recent years, members of the Veterinary Valuation Resource Council of VetPartners have seen an increase in the number of practices with no value or an exceptionally low value when appraised," said Dr. Christine A. Merle, VetPartners executive director.

"Quite unexpectedly, appraisers were also seeing low values in practices you would never normally expect it in. This low value was driven primarily by a lack of profitability—and, to make matters worse, most owners of these low-profit practices were not even aware of their poor financial situation."

The profitability estimator is available at www.ncvei.org.