Background
The Wylie Veterinary Centre opened in 1908 and was owned by three generations of the Wylie family before the current shareholders took over the reins. The practice comprised an RCVS-accredited hospital in Upminster (the highest standard possible for a private practice), and a new ‘pet hub’ site located in Brentwood. Wylie had gained an excellent reputation as the leading independent veterinary practice in the area, with an unrivalled reputation for the highest-quality service and staff retention.
Action
The team at FRP was instructed to act as advisers and provide a strategic options review for the shareholders and the business, exploring the development opportunities available. Our Corporate Finance team assessed the range of options with the board, giving advice on the current market value of the business, and how that could be enhanced in the long term. They assisted with the modelling to secure a debt package that would allow the company to open a second animal hospital, alongside structuring a transaction that enabled one of the shareholders to leave the business while offering the remainder of the senior management team the opportunity to buy shares, aligning interests for the next stage of growth.
Outcome
Having evaluated the company’s position, assessed the key value drivers and areas of risk, and reviewed the full range of options, our team worked with management to create a comprehensive integrated financial model, which illustrated several sensitivities that were able to stand up to third-party scrutiny. The team then presented the integrated model to the incumbent funder, securing their commitment to support the long-term plan.
We presented the integrated model to the incumbent funder, securing their commitment to support the long-term plan.Dave Howes Corporate Finance