Consolidate That!

Dr. Gary Ackerman, the Founder of Ackerman Group, joins us to talk about how veterinary practice owners can successfully navigate the complex process of business transitions in today’s busy seller’s market.

Dr. Ackerman also shares some of the pitfalls to avoid along with great financial advice.

Topics discussed:

• Why it is a seller’s market at the moment and which factors contribute to the interest.
• Pitfalls to avoid and why due diligence is important from both sides.
• The value of including a stabilization process.
• The rising temperature on single veterinary transactions and how small practices become bigger practices over time. 
• Your options in Joint Ventures and Private Equity.
• How some companies focus on both margin expansion and arbitrage.
• How to begin the process of selling your practice and how Ackerman Group can help.

“The wellbeing of humans drives successful work.” Kari Sulenes, the Co-Founder of Pilea, talks about how to build an organization without burnout. 

During the conversation, Kari shares the five elements which she believes are essential to wellbeing in the workplace, and how she is working to transform the hustle culture that is so pervasive in today’s society.

Topics discussed:

• The focus of Kari’s clinical psychology and organizational behavior dissertation. 
• A meeting with venture capitalists that guided Kari down the path she is now on with Project Atlas.
• Kari explains how she compares burnout, compassion fatigue, and vicarious traumatization.
• Five key pieces of advice from Kari on how to build an organization with no burnout.
• How stress manifests itself physically in our bodies. 
• Kari’s desire to change the “at all costs” mentality that exists in so many companies.

Today, Dr. Ivan Zak and Ryan Leech discuss value streams and value stream mapping. Ivan walks us through the definition of value stream mapping, providing some examples of different ways you can add value in a clinic setting. 

There are hundreds of processes that happen in a clinic every day, and it is important to know each step and have an understanding of how they all fit together. 

Topics discussed:

• A look at what value stream mapping is and an example of delivering value in a clinic. 
• Differentiating between systems and subsystems. 
• Where arbitrage happens and where margin expansion happens. 
• The importance of defining what phase completion looks like. 
• Defining what stabilization means and the buffer zone it provides. 
• An actionable step your organization can take right now to map out value.

Dr. Ivan Zak and Ryan Leech discuss the importance of having prioritization procedures in place to avoid running too many projects at once and resulting in failure.

Additionally, we cover how the Consolidator Operating Framework adapted Kanban methodology, and how to implement Weighted Shortest Job First as used in Scaled Agile Framework (SAFe).

Topics discussed:

• The importance of knowing and using prioritization techniques;
• What is the WSJF methodology; 
• Weighted Shortest Job First and Cost of Delay formulas;
• Potential risks of having multiple projects in progress simultaneously;
• How prioritization at all the levels of the organization will help to prevent burnout;

Nicole Clausen, an Inventory Consultant, joins us to share some of her wisdom. She tells us about her brand-new software, Inventory Ally, which is the perfect starting point for inventory optimization.

Nicole also shares what motivated her to start doing inventory management, real-life examples of clients whom she has helped to dramatically improve the structure of their businesses, and ways that corporate groups can leverage buying power without compromising dynamics within the veterinary team.

Topics discussed:

• The wide range of practices that Nicole works with to improve their strategies. 
• How the cost of goods varies according to the type of practice.
• A common mistake people make with regard to the cost of goods.
• Why the creation of a standardized system is important for inventory management.
• The problem of mischarges in veterinary practices.
• KPI’s that Nicole looks at when optimizing inventory management of a practice. 
• What an inventory turnover ratio is, and what it indicates about the state of your inventory.
• Nicole shares an example of a client who she helped to reduce her adjustment from $20,000 to $500 per quarter. 
• Benefits of Inventory Ally.
• Ways that groups can leverage their buying power.

Jeffrey Feldberg, Co-founder of Deep Wealth, joins us to share his experience helping sellers maximize the value of their businesses as they exit. Jeffrey provides us with some practical advice on how to have a successful "liquidity event" when it comes to acquisitions.

During this episode, we discuss the main things a seller needs to think about when considering selling a business, the importance of preparation, and the three things that happen without preparation. 

Topics discussed:

• The main things a seller needs to think about when considering selling their business;  
• The value of preparation and three things that happen when you're not prepared; 
• The importance of thinking like a buyer;
• Why the highest offer isn't necessarily the best offer and the importance of cultural alignment;
• The importance of transparency when the seller doesn’t want to go through with the deal;
• The “Now what?” question and why you should ask it before the liquidity event;

Our hosts, Ryan Leech and Dr. Ivan Zak, discuss types of veterinarian compensation models. What are they? How do they affect the business? How can consolidators use them to implement goals and objectives across the entire framework? And how to create a culture that people want to work in?

Topics discussed:

• Types of veterinary compensation models;
• Ryan's experience in building different payment structures for teams;
• How to pick up a compensation model to motivate the right behavior;
• Ivan's example of Maslow's pyramid in relation to culture and a sense of belonging;
• A culture that people want to work in - Netflix experience;

Yang Shi, the Co-Founder and CEO of VetSnap, talks about the consolidators' veterinary technology stack and the importance of staying focused on people first and then processes when it comes to business systems.

We delve into why it is necessary and how to follow your strategy with technology. Finally, we argue the hot topic regarding moving on to one PIMS when a new hospital is acquired.

Topics discussed:

• Experience with technology at the macro level in the consolidation; 
• Why you should think about people first and then processes when it comes to business systems; 
• What it means to follow your strategy with technology;
• Paying for integration makes more sense than building up your stack from the ground floor;
• Thoughts on standard data aggregators and whether or not they are applicable in the vet domain;
• How having the right data strategy can help to scale more efficiently as far as growth; 

Brakke Consulting, and City Way Animal Clinics join Dr. Ivan Zak for a special web panel, 'Veterinary Consolidation Outlook: Pushing Beyond Your Current Plateau'.

John Volk of Brakke Consulting shares his research and Dr. Kurt Phillips of City Way Animal Clinics shares his experience to predict where the veterinary industry is heading.

During the webinar, we explore:

- Findings from the 2021 Brakke Industry Overview: status of veterinary practice consolidation and future projections

- Key revenue drivers in veterinary services for the next 5 years

- Six essential components for growing a successful veterinary group

- A business methodology to future-proof your enterprise

Richard Blann of Cantor Fitzgerald, gives us his thoughts on why the veterinary industry has seen so much action in the past decade and his predictions for how consolidation will change in the next five. 

We talk about burnout and career satisfaction within the veterinary space and explore a partnership model that serves both providers' and investors' interests and touch on how that model has been tested and used in other verticals.

Topics discussed:

• Richard’s thoughts on why the physician management space has seen an explosion of deal activity in the last ten years;
• A prediction for how consolidation will change in the veterinary industry in the next five years;
• Burnout and career satisfaction within the veterinary space;
• A partnership model that serves the interests of both providers and investors;
• How having a succinct strategy determines success and supports your performance;
• The importance of having a strong culture of communication;

An exclusive roundup coming straight from VMX 2021! We asked the experts: “What would you do differently if you knew the pandemic was coming?” From paying attention to the stock market to investing more in employee wellness and telemedicine - hear their unique insights.

Sebastian Gabor, Founder of Digitail, joined us to talk about client communication nowadays. Sebastian shares the three main divisions of his team, and explains why it is so important for software companies to stay on top of changing needs. 

We dove into the role of client feedback and explored why all-in-one solutions are stronger than siloed ones.

Topics discussed:

• How Sebastian approaches change management;
• Digitail’s three main divisions; education, implementation, and customer success;
• Why it is important for software companies to stay on top of changing needs;
• Why all-in-one solutions are stronger than siloed solutions;
• The learnings from client feedback and reviews;
• The role of e-commerce within the PIMS space;
• Why the biggest win is when a client goes to the app rather than approaching Google;

David Boguslawski, CEO of CityVet, reveals some details about their business model and their local ownership of clinics. We also discuss CityVet’s tool to increase transparency and trust levels within the company and ensure that concerns of team members are properly addressed, and recognition is given when due.

To end off this episode, David shares his thoughts on de-novo to acquisition.

Topics discussed:

• Distinctive characteristics of CityVet;
• Freedom through trust; what this core principle of CityVet means;
• Programs that assist staff members in numerous ways;
• MUTTS - the platform that CityVet finds very useful as an internal communication tool, and as a tracking tool for everything related to the business;
• The value that is provided by metrics and KPI’s;
• Examples of ways to provide transparency without making the environment a competitive one;
• The importance of mental health;

Steve Thomas, the Co-Founder and CEO of Vets Pets, joins us to discuss their unique growth business model and talk about the different types of financing based on the different types of seller economics. 

Learn more about how Vets Pets has evolved over the past 14 years, the idea of avoiding private equity money, the cost differences between de-novos and acquisitions and Steve sheds light onto the pros and cons of each. 

Topics discussed:

• Insight into the business’s acquisition economics;
• Why Vets Pets tries to avoid private equity money and how they structure their veterinary partners’ loans;
• Understanding the good-fit target partner;
• The differences in the costs of building de-novo versus acquisitions; 
• The long-term goals of Vets Pets;
• The benefits of being able to leverage assets across existing nearby practices;

Dr. Jaime Pickett, Chief Veterinary Officer at Pet Paradise, joined us for an interesting discussion about the importance of always being ready and willing to pivot quickly and the value of being open to the ever-changing drivers that affect vets.

Dr. Pickett shares her path from a veterinarian to franchising to CVO and why a business degree is beneficial for all vets, especially when moving into leadership roles.

Topics discussed:

• How Dr. Pickett went from veterinarian to franchising to CVO at Pet Paradise;
• Why holding a business degree is useful for all vets, especially when moving into leadership roles;
• Dr. Pickett reflects on client acquisition versus scaling veterinary services during COVID;
• The value of being open to the ever-changing drivers that affect vets and pivoting accordingly;
• Find out how Pet Paradise attracts talent by spotlighting the benefits of seeing happy, smiling pets rather than exclusively ill or injured ones;

Dr. Ivan Zak and Ryan Leech discuss the importance of a reliable support process in a veterinary group. In this episode, our hosts talk about the three main support components: help desk, knowledge base, and learning management systems.

We cover the importance of having a knowledge-accumulation process that should start from the very beginning of the organization, and the opportunity for the veterinary consolidator to streamline the process of hiring/firing, budgeting, and more.

Topics discussed:

• The definition of enterprise support organization;
• Three main support components;
• The importance of having established support at the inception;
• Parallels between software support and support in a veterinary group;
• The benefits of having enterprise support with a specialized team outsourced;
• How the symbiosis of ticketing system, knowledge base, and learning management system could be transformed into a valuable metric for the board;
• How the enterprise support organization removes bottlenecks in the consolidation value stream;

Our guest today, Andrew Schultz, Jr,  Director of Business Development & Clinical Services at Midmark Animal Health, talks about how dentistry can be applied as a strategy for consolidators, the importance of client education on the necessity of dental cleaning for their pets. 

During this episode, Ryan Leech and Dr. Ivan Zak discuss with Andrew how to determine the cost for optimizing dentistry in a veterinary clinic and ways to assess clinics prior to acquisition.

Topics discussed:

• How dentistry can be applied as a strategy for consolidators.
• How Andrew realized there was a lack of skills training and therefore an opportunity to provide post-graduate education around dentistry. 
• Baseline and benchmark training for the entire staff, including the front office staff, as a way to study program effectiveness.
• Doubling revenue through training
• The importance of client education on the necessity of dental cleaning for their pets.
• Andrew breaks down how to determine the cost for optimizing dentistry in a veterinary clinic.

Kison Patel, the Founder and CEO of DealRoom, joins Dr. Ivan and Ryan to discuss the difference between large corporate acquisitions and veterinary industry M&A.
Listen in to hear the fascinating the convergences and divergences between Kison’s journey and veterinary consolidation.

Topics discussed:

• The goal that Kison has for his book, Agile M&A, and the framework that developed from that;
• Similarities and differences between M&A in disparate verticals;
• Inefficiencies of the traditional approach to M&A;
• The role that Kison’s company, DealRoom, plays in the M&A process;
• A common post-acquisition problem and why good communication is the key to solving it;
• People-to-people issues are what make or break a deal, so listening to the HR perspective is essential.

Dr. Bob Murtaugh, the Chief Professional Relations Officer at Pathway Vet Alliance, states that communication is key when it comes to consolidation. Today’s episode is jam-packed with advice on how to make the consolidation process work for everyone involved. 

Our conversation explores the types of skills and educational backgrounds which make good regional managers, and the functions which need to be cultivated at both local and global levels. During this episode, Bob shares how they go about the recruiting process at Pathway and the largely untapped avenue they are beginning to utilize.

Topics discussed:

• Skills that are vital for regional managers at Pathway Vet Alliance; 
• Functions that need to be cultivated at a local level;
• Change management strategies that Bob utilizes;
• Why it is so important to have the whole team on board; 
• Bob’s tips for scaling;
• Platforms to advertise jobs or find people looking for work;
• AVMA’s new research study with graduate students;

Stewart Pollard is an engineer turned leadership coach and the founder of SHiFT Leadership Solutions. In today's episode of Consolidate That!, we talk to Stewart about why purpose is so important in the formation of culture in an organization and how leaders can best instill this in their teams.

So for all this and more about connecting people to purpose through process to achieve the ultimate goal, tune in today!

Topics discussed:

• Why purpose is so important in the culture formation of an organization;
• Being committed to the end goal and solving a customer’s problem;
• Establishing purpose through introspection and finding ‘why’;
• How to give the younger generation a sense of purpose in big corporate roles;
• Using stories to align coworkers to your purpose;
• The value of aligning the purpose of leadership and employees;