Veterinary Clinic Feasibility Study in Ohio

Ohio veterinary loans: far below the national median

Ohio veterinarians borrow much less than the class does elsewhere. The Ohio median was $301,800, only 0.49x the national median for veterinary clinics, and the Ohio median is the reading that clears our margin against Ohio's all-asset book and veterinary lending nationally. The Ohio quartiles run from $92,550 to $670,000, so most Ohio deals are equipment, working capital, buy-ins and acquisitions of existing practices rather than large new hospitals. Over FY2017 to FY2026 Ohio approved 147 veterinary loans worth $87.4 million, which ranks the state 4 of 53 for the class. Within Ohio, veterinary clinics are the 15 of 39 class, and a 0.83x location quotient puts them somewhat below their national share.

The Huntington National Bank's Ohio book

One lender dominates. The Huntington National Bank holds 56 Ohio veterinary loans worth $33.4 million. Live Oak Banking Company holds 12 worth $10.0 million, and Alloy Development Co., Inc. holds 6 of the 504 loans. SBA 7(a) carries 125 approvals and SBA 504 22. No Ohio veterinary loan carried a franchise brand, a share of 0.00%. Ohio approvals reached 25 worth $19.9 million in FY2021 after only 4 in FY2020, and were 11 in FY2026.

Cancellation is the outcome to plan for: Ohio's veterinary approvals dated FY2017 to FY2024 show at least 12.2% cancelled, 13.8% at the ceiling. In practice acquisitions, that often follows a valuation, a seller's records or a non-compete that did not hold up. Credit has been sound. Of the 73 Ohio veterinary loans funded over FY2017 to FY2021, 2.7% are written off, and Ohio's five-year figure is also 2.7%, so the recorded Ohio losses came early. These are floors.

What an Ohio veterinary feasibility study must test

Ohio approvals are spread evenly: Cuyahoga, Delaware and Franklin hold 10 each, and Butler, Hamilton and Stark 7 each, so several Ohio counties offer some comparison. A feasibility study must test the pet population and household spending in the trade area, the competing general and emergency practices, and the number of veterinarians the practice can recruit and keep, since staffing often limits revenue. For an acquisition, it must verify production by doctor and client retention. Cost should cover exam rooms, surgery, imaging and lab equipment at current Ohio prices. Payments must be covered by documented revenue at the actual loan, up to $670,000 at the upper quartile, and if the Ohio deal includes a building, the appraisal must value the property apart from the practice's goodwill.