No images? Click here National Veterinary Care (NVL) enters into Scheme Implementation Deed with VetPartnersActually, this means that subject to various conditions NVL is selling out to VetPartners (Australian Veterinary Owners League Pty Ltd trading as VetPartners) The Price to VetPartners is $3.70 per share a huge premium to the volume awaited average price of NVL’s share price in the preceding month and may represent a “get out of jail” card for NVL’s share owners as the company hasn’t done particularly well in the past year or so. For vets who are interested please find attached link below and read the announcement in full including a lengthy scheme implementation deed. https://www.asx.com.au/asxpdf/20191216/pdf/44clz8zdtg1v72.pdf Synstrat’s View The simple truth is that corporately run veterinary practices have some advantages in purchasing but are strongly disadvantaged compared to well run privately owned and conducted veterinary practices in respect of continuity of staffing. A common complaint about corporate practices is “I never see the same person twice”. This is particularly acute due to the large proportion of part-time vets. Full-Time Vets Vets who are able to work full-time and commence veterinary practices near corporately conducted practices do very well; even better if there is a partnership of two full-time vets. Synstrat is happy to assist with advice, contact Graham Middleton or if unavailable speak to Jenny O’Brien on (03) 9843 7777. The Big Limitation on Corporates Whereas certain types of business such as large mining companies or airlines can gain grater profitability by replacing smaller machines with bigger machines and having less people no corporate has figured out a way for veterinary surgeons to operate on two dogs simultaneously. We expect that VetPartners will find running an Australia wide network of veterinary practices to good average practice profitability standards a great deal more challenging than they might have anticipated. Their experience in purchasing several major groups of practices being a combination of the Vetwest Animal Hospital Group and Adelaide Animal Hospital Group plus a Sydney group of practices and others, is still quite short. As most veterinary practice owners know, staffing practices, particularly practices of any size in an environment with so many vets choose to work part-time is challenging. To do that with a larger number of practices Australia wide and to do it successfully will present a heroic challenge. Best wishes to all vets, Graham Middleton The Synstrat Group are Australia's most experienced Veterinary practice business advisers, accountants, practice valuers and licensed financial advisers. The information contained herein is of a general nature and no specific action should be taken without individual advice. Speak with Synstrat staff as appropriate. Synstrat Management Pty Ltd P. 03 9843 7777 ABN 57 006 295 325 If you are not the intended recipient of this communication please delete and destroy all copies of this message and telephone Synstrat on +61 3 9843 7777 immediately. If you are the intended recipient of this communication you should not copy, disclose or distribute this communication without the authority of Synstrat. Any views expressed in this communication are those of the individual sender, except wh ere the sender specifically states them to be the views of Synstrat. If you do not wish to receive this email in future, please reply to the sender requesting termination of service. |