How Dr. Cabeza Obtained Equity, Continued Ownership, and Expansion With a Highly-Customized Practice Sale
About Dr. Anjanette Cabeza and Doral Centre Animal Hospital
Dr. Anjanette Cabeza owned Doral Centre Animal Hospital(DCAH) for 23 years before selling her practice and boarding facility in 2020. Located west of Miami, her 9-doctor, 24-hour emergency practice also featured a separate building for pet boarding services, called Woodland Lodge Pet Resort. Dr. Cabeza owned both properties; her animal hospital underwent renovations in 2010 and spanned 3,000 square feet at the time of sale.
Initially, Anjanette approached a local brokerage and attorney to drive her practice’s sale before coming across Ackerman Group online and inquiring with our team. Her local broker told her that the valuation we estimated for her practice was impossible to obtain. In seven months, our team procured optimal value for Anjanette and ultimately exceeded her local broker’s expectations.
Dr. Anjanette Cabeza
Veterinary Practice Sale Goals
She wanted to focus on practicing medicine, and that meant partnering with a buyer that would take hospital operations and administration off her shoulders.
Dr. Cabeza wanted to regularly visit her daughter in Tampa, with the peace of mind that the partner would look after the practice while she traveled.
“When I contacted Ackerman Group, I would have guessed that my business was worth an amount and that was my bottom line for selling. Instead of just “clearing” that number, the team helped me “net” that number and more. Ackerman did so much of the leg work facilitating the sale, that as an individual running my business I never felt like I was alone.”
Dr. Anjanette Cabeza
Veterinary Practice Sale Process
Ackerman Group evaluated her practice’s information, financials, and Dr. Cabeza’s goals to prepare the hospital to go to market. In particular, our team planned to secure a highly customized deal for Anjanette – one that provided the structure that Dr. Cabeza preferred in a partnership. This sale type not only aligned with her objectives, but it also achieved holistic value in the form of short-term gains, long-term ROI, and it gave the option to key Associates to participate and capture business upside.
A deal that includes joint venture is generally uncommon in veterinary practice sales. However, it is feasible and makes sense in the right circumstances. Fortunately, Dr. Cabeza’s hospital met the criteria to make it happen.
After meeting with potential buyers and soliciting offers, Anjanette signed a Letter of Intent with Innovetive Petcare. Subsequently, she sold both Doral Centre and Woodland Lodge to Innovetive Petcare in 2020 through a joint venture with equity as planned.
“The company Ackerman Group presented to me was one I had never even heard of and now four months into the sale, I am super pleased with the new owners and impressed with how they run my company. Gary personally stayed involved throughout the entire transaction and even stepped in to assist in negotiating to refinance my property when that was only a side note to the agreement and not part of his contractual obligation to me.”
Outcomes and Results with Ackerman Group
Anjanette sold 75 percent of her veterinary business to Innovetive Petcare while she retained a 25 percent minority stake. The purchaser paid for her practice both with cash and with equity. Equity meant that Dr. Cabeza benefitted from the increased value of Innovetive Petcare over time.
Innovetive Petcare also built into her sale the option to include other employees in the joint venture. With her 25 percent stake, she could “gift” a portion of her ownership to key Associates down the line.
For everyday operations, Innovetive Petcare took over aspects like accounting, marketing, HR, IT, and more. With the transition, full-time staff were covered with benefits like health insurance, a 401(k), and paid time off. Previously, Dr. Cabeza’s hospitals only provided some health insurance coverage and some PTO.
Anjanette rented her facilities to Innovetive in a 15-year, triple net lease (NNN) with five 3-year options to extend. Additionally, they were responsible for real estate taxes, property insurance, general maintenance and repairs. The sale’s terms also addressed Dr. Cabeza’s desire to expand: Innovetive Petcare would work her on budgeting and planning the project.
As Dr. Cabeza has not yet fully exited the JV, our team is currently working with her to increase her practice’s profitability to maximize her value.
12.2x
EBITDA Multiple
$4.2M
Overall increase in value from the initial DIY offer
50%
Growth in JV (so far)
