Veterinarians Rely on Pacific Continental Bank

Transcription

1 Veterinarians Rely on Pacific Continental Bank Just as veterinarians are committed to their patients welfare, Pacific Continental is committed to the financial health of veterinary clinics. We understand your business and are dedicated to being your trusted partner. The Right Bank for Veterinarians Acquisition Financing Steps to Acquiring a Veterinary Clinic Real Estate Considerations for Purchasing Real Estate Business Banking for Veterinarians

2 Steps to Acquiring a Veterinary Clinic Although every situation is unique, the following steps provide a general overview of the process involved in acquiring a veterinary clinic: Planning Determine a radius of interest (e.g., state, county, community). Prepare a personal budget. Account for changes related to relocating, if applicable. Define your ideal practice (needs/wants). Clinic type: small animal, mixed animal, exotics, large animal, holistic, emergency, mobile Staffing: one doctor, two doctors, multiple doctors Facility requirements: exam rooms, surgery rooms, treatment rooms Offerings: supplies, food, medications Services: boarding, grooming Identify a Clinic To Acquire Identify a clinic either listed with a broker or via direct solicitation. Assess the facility (lease space, commercial property available for purchase, future purchase option). Review annual production and revenues. Select a Team of Strategic Advisors Practice broker/consultant Accountant/financial planner Attorney Insurance agent Lender Mentor Perform Preliminary Due Diligence and Assess the Following: Personnel Procedural mix Equipment condition Technology (paperless, practice management software, digital radiography) Collection practices Average transaction charge and average daily production per doctor Current client count and average new clients per month Lease terms Execute a Letter of Intent and Secure Financing Budget for needed items. Consult with your lender and insurance agent to apply for and obtain appropriate insurance policies (life, disability/business reducing term, malpractice). Obtain a commitment letter from your lender. Have paperwork reviewed by your attorney and accountant. Conduct Final Due Diligence Evaluate short- or long-term changes. Staffing Marketing Recall/appointment reminders Clinic policies and employee manual Transition Planning Announce change of ownership to both staff and clients. Meet with your attorney and accountant to form business entity and apply for tax ID number, etc. Open business accounts (checking, savings/money market and merchant bankcard processing). Execute Purchase and Sale Agreement Consult Strategic Advisors and Staff to Ensure Smooth Transition Open house Client introductory letter Individual staff meetings Community involvement

3 As a veterinarian, your professional duty is to provide top-quality medical services to ensure the protection of animal health. But your mission goes further than that. The Right Bank for Veterinarians Your experience, attention and dedication to service make a critical difference in the quality of care you provide and the quality of the relationships you enjoy with your clients and animal patients. Your clinic is not just a professional obligation; it s a personal commitment. Shouldn t you be doing business with a bank that shares those same values? At Pacific Continental Bank, we focus our energies on serving our veterinary clients better than any other financial institution. As a community-based business bank, we offer a unique and unparalleled resource a combination of professional expertise, individual attention and personal commitment. This commitment means we will work hard to understand your individual needs and counsel you on the financial decisions that affect your business. Beyond Banking In addition to the expert business and personal banking services we offer our clients, Pacific Continental can help your clinic by providing education and resources designed to help businesses like yours. We offer guidance on running offices more efficiently, information on industry trends that affect your clinic and assistance in considering the financial decisions that will have an impact on the future of your business. Our emphasis on relationship banking means you can rest assured that your veterinary clinic and finances remain well managed so you can concentrate on what you do best providing services to your animal patients. Acquisition Financing * Purchasing an existing clinic has its own unique set of challenges and benefits. The team at Pacific Continental will work with you and your group of advisors to help evaluate factors such as price, location, current equipment and client base. We can also assist in assessing cash flow to make sure the clinic is on the right track. At Pacific Continental, we will work closely with you to help ensure the transition is as smooth and streamlined as possible. Customized Options We deliver a broad range of financial solutions specifically customized for your exclusive situation, including acquisition and real estate transactions purchased in tandem. At Pacific Continental, we remain sensitive to your timeline objectives and fulfill the need to close quickly. Partnership buy-ins can be complicated because of their structure, asset allocation, lease terms and legal requirements. We have a process in place for buy-ins that is unique to the industry and facilitates a seamless transition. When buying a specialty clinic, we typically include a generous amount of working capital, allowing you time to meet with the seller s referring doctors. Our extended reduced payment period affords you time to develop your own referral network. As with all of our veterinary clinic loans, we can offer 100%+ financing, as well as fixed- and variableinterest-rate options. * All loans subject to credit underwriting approval.

4 Real Estate As a veterinarian, you work hard to build and grow your clinic. Taking the next step ownership of the building where your clinic is located can prove to be a worthwhile investment for combined personal and professional goal attainment. Purchasing property can offer many tangible benefits, such as: Tax deductions. Control over remodeling and renovation. Additional income from leasing space to other tenants. Building equity. Owning your building also helps to position your clinic for success when you are planning for retirement or formulating your exit strategy. It can increase the value and provide a source of secondary income should you decide to retain the property after you sell your practice. Pacific Continental is here to assist you in navigating the complex commercial real estate industry. Our veterinary expertise, combined with our deep knowledge of everchanging local markets, makes us the right choice to be your banking partner. We will work with you to capitalize on your clinic s short- and long-term growth opportunities and identify the best real estate options for ownership considerations. We offer customized plans and financing packages that fit your specific situation, whether you re purchasing land or an existing building. Considerations for Purchasing Real Estate There are some important business considerations to take into account when purchasing or developing real estate for your clinic. Pacific Continental Bank provides a team of experienced specialists with the expertise to provide strategic guidance for the real estate process. Below are some important items to consider when evaluating a real estate purchase: Terms of the existing lease (current lease payment vs. new loan payment). Clinic s current cash flow and its ability to support the purchase. Relocation impact on staff and clients. Revenue impacts (improve or impair). Loan Purchase Considerations Is the land zoning appropriate for a veterinary clinic? Are there any environmental concerns with the subject property? Are there city, county or state restrictions on developing the property? Is this the best use of the property? Construction Considerations How do I design my clinic to maximize productivity? How many operating and exam rooms do I need? Will I have room to grow? What area will be designated for food, drugs and supplies? Will space be needed for boarding and grooming? Does my contractor, designer and/or architect have experience with veterinary construction projects? Do I have to pay out of pocket for the soft costs associated with my construction project? Does the landlord provide an allowance for tenant improvements? Business Banking for Veterinarians Managing cash flow to maximize profits and reduce expenses should be a top priority for any business. Your veterinary clinic is no exception. At Pacific Continental, we tailor our business-banking services to provide extra levels of control and flexibility that may speed up your collections, reduce your operating costs, increase employee efficiencies, enhance your cash flow and improve your bottom line. Veterinary Clinic Banking We offer our veterinary clients a comprehensive array of accounts, including money market, sweep, zero balance and account analysis checking. We also have enhanced service offerings and technologies that provide even greater ease of use, convenience and security for commercial accounts, multiple accounts or accounts requiring specialized service: Sweep access is available on multiple levels, designed to maximize your investment and loan payment goals. Online statements offer a quick, secure and completely confidential delivery of your periodic account statement.

5 Online Banking Plus For clinics with specialized online banking needs, Pacific Continental s Online Banking Plus program provides an extensive menu of services, unique levels of access and security for multiple users, and online tools to extend banking hours, saving you time and money. Business Bill Pay allows you to delegate payment tasks and set permission controls for multiple users as well as providing an option for dual signatures and customized audit reports. ACH direct deposit payroll for your employees. ACH direct payment plans for your clients. Wire initiations, federal tax payments, electronic balance alerts and fraud control. Positive Pay and ACH Positive Pay that helps protect your clinic from fraudulent incoming electronic items. Mobile Banking Pacific Continental offers a mobile banking app for Apple and Android devices that is also tablet friendly. Our enhanced app offers many features that make banking even more easy and convenient. Display account balances in real-time. Display online activity and approve pending transactions. Complete funds transfers. Send bill payments to existing payees. Submit ACH single payments/receipts and domestic wires only available for Online Banking Plus users. Deposit Plus Remote Capture Deposit Plus is an online check processing system that allows you to electronically deposit checks throughout the day so that you can manage your daily banking needs right from your office. It s a convenient and highly effective way to improve your business efficiencies, enhance your cash flow and help ease the often complex nature of running a clinic. Merchant Bankcard Our Merchant Bankcard program provided by Vantiv gives you the tools, resources, conveniences and services you ll need to accept all major credit cards and debit cards. Along with easy enrollment, you and your clinic will have access to the following amenities: Ongoing consultation and support. Equipment troubleshooting. Toll-free access for after-hour emergencies. Website for transaction research. Statement Plus CD-ROMs Our interactive Statement Plus CD-ROMs make researching your account activity a breeze. It allows you to view the front and back of every check written and deposited, along with images of all deposit slips and monthly account statements. PayNorthwest PayNorthwest is the preferred provider of payroll services for Pacific Continental Bank, offering web-based time, payroll and HR systems, as well as the Smooth Start Program, to make switching easy and stress free. Pacific Continental clients receive special benefits such as free W-2s for the first year and discounted pricing. For more information about PayNorthwest and the special benefits they offer, visit paynorthwest.com/therightbank.

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