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The Broker
Q2: M25 England- "I have an established small animal practice which I have run single handed for the last six years. My turnover (ex VAT) was £339,000 last year, with a net profit of £94,000. About 6 months ago a pet supermarket in house practice opened within 1 mile of my surgery. Will this destroy any chance of selling my practice for a reasonable price?"

A: Often pet supermarket practices will open up near to other independent practices. Obviously they will attract clients from your practice, but similarly they will attract them from other neighbouring practices. Our experience has shown that you could lose up to 15-20% of your income as a result. However in most cases many clients will also return, especially if you are competitive on price. This can still be undertaken even while you increase some prices. Most of the supermarket practices are competitive on the shopped prices, e.g. vaccines and neutering and more expensive on the non shopped services. Once you have stabilised your sales income reduction, and got to a point where you are starting to increase it again there is no reason why your practice should not sell.