The Covid-19 pandemic resulted in higher turnover for almost half of Irish veterinary practices last year with an increase in pet ownership levels contributing to greater demand for services, according to a new report by accountants HLB Sheehan Quinn.
With increased growth in the veterinary sector, more than one-third of veterinary-practice-owner respondents (34 per cent) are planning to sell their practice within the next three years, the report notes.
Almost half (47 per cent) of respondents said their turnover increased in 2020, partly due to an influx of new pet owners and people working from home having more time to interact with their pets during the lockdown.
The top challenge facing veterinary practices related to staffing, and most respondents (63 per cent) said they were planning to recruit additional vets or veterinary nurses in the next 12 months.
Incorporated practices
Achieving better work/life balance was the top aspiration of 60 per cent of veterinary practice owners and 85 per cent of employees as many respondents reported that their workload increased during 2020 due to the pandemic.
The number of incorporated practices is up by 12 per cent when compared to last year. While the majority of practices remain unincorporated, 60 per cent of those surveyed indicated they would consider incorporating their business.
With regard to corporate activity, more than 20 practices have been purchased by the corporates operating in Ireland. Feedback was “positive” and there was “no indication that the practice of veterinary medicine has been negatively impacted”.
HLB managing partner Mark Butler said veterinary practices could take steps to improve their businesses.
“Like many businesses across Ireland, veterinary practices had to find new ways of working in 2020 to cope with the impact of the Covid-19 pandemic,” he said.
Digital marketing
“Those who fared best adapted their working practices, finding ways to overcome difficulties and take advantage of emerging opportunities like the influx of new pet owners.
“By focusing on areas like practice management, digital marketing, practice culture and profitability, practices can identify the steps they need to take to optimise their business.”
He added that business owners should seek financial advice before selling their firms.
“Our research shows that more than a third of veterinary-practice-owner respondents plan to sell their business within the next three years,” he said.
“As part of their due diligence, potential buyers will examine a practice’s financial track record. Obtaining advice well in advance of any transaction will give practice owners time to identify and address potential problems and ways to enhance value.
“Look for experts with experience in the sector as traditional valuation methods do not suit veterinary practices.”
