Veterinary Clinic Feasibility Study in the Boston-Cambridge-Newton, MA-NH Metro Area

High rank, low weight, small tickets

Boston-Cambridge-Newton is 13 of 485 for veterinary clinic loans, but the class is 17 of 39 inside the metro and a quotient of 0.56x shows clinics well under their national share. Across FY2017 through FY2026 SBA logged 45 approvals totalling $33.3 million. The midpoint of $356,000 is just 0.57x the national midpoint, and the typical range runs $125,000 to $995,000.

How to read the low ticket

The median is well below the national midpoint, and the file cannot show what each loan financed. Of the loans, 36 are 7(a) and 9 are 504, and the franchise share is 0.00%, so independent practices make up the record. A request near $356,000 sits at the middle of this file, while one near $995,000 sits at the top of the typical range.

Counties across two states

Middlesex County, Massachusetts, has 15 of the 45 loans, Norfolk County 7, Rockingham County in New Hampshire 7 and Strafford County in New Hampshire 5. Live Oak Banking Company is listed on 10 loans worth $16.3 million, Eastern Bank on 7 worth $1.1 million and TD Bank, National Association on 5 worth $1.2 million. Live Oak's average far exceeds the others.

Years, cancellation and charge-offs

Cancellation after approval reached 13.2% or more among FY2017 through FY2024 approvals; read it as a floor. No ceiling and no charge-off figure is printed. The printed years are the only ones with enough loans to show, so the yearly series is partial and says nothing about the years left blank. Years printed: FY2018 with 10 loans and $5.5 million, FY2021 with 5 and $3.3 million, FY2022 with 5 and $4.5 million, and FY2024 with 5 and $5.9 million.

Testing a Boston-area clinic

A study should lean on the trade area, including pet ownership, household income and nearby specialty and emergency practices. It should test lease cost per square foot, build-out for exam rooms, surgery and imaging, and the cost and availability of veterinarians and technicians. Should the plan be a purchase, learn how far revenue rests on the selling doctor's personal clients. Payment coverage should hold during a slow ramp; an appraiser has to pull goodwill apart from equipment and real estate.