In this newsletter, I felt compelled to share something that weighs heavily on my heart: embezzlement. We often like to think it could never happen to us; however, I estimate we uncover embezzlement in 1 out of every 12 practices we evaluate. It's a harsh reality, and it underscores why practice valuations are so critical.
Over the past 22 years, I've seen a little bit of it all—skimming cash off the top (back when cash was still common), changing invoices and transaction details, theft of controlled substances, food, OTC items, office supplies, changing deposit amounts, and even paying for personal expenses while modifying bookkeeping to disguise them as business costs. If only these talents were put to better use!
This month alone, we've uncovered two separate cases of embezzlement. It's disheartening, to say the least, and devastating for the owners.
The first case was a real wake-up call for the owner of a large emergency practice. They trusted their staff and treated them like family, giving them the freedom to make decisions without seeking approval. But without clear boundaries and with overlooked bookkeeping, the employees began to see themselves as equal partners. It wasn’t until preparing for the sale that discrepancies in the finances brought light to the truth.
The second case involves a solo practitioner who lost over $228,000 due to their practice manager's actions, with $103,000 of that loss occurring in 2024 alone. That's over $500,000 in potential practice value affected! The practice manager had worked with him for 14 years – a very tough pill to swallow.
In both of the cases mentioned, the owners could have avoided being taken advantage of by having their practice appraised just once a year. A valuation can serve as a guide to help you identify areas that need attention, improve profitability, and ensure long-term success. Our team thoroughly analyzes business financials to uncover mismanaged expenses that could indicate potential embezzlement.
A practice valuation isn’t just about preparing to sell your veterinary practice—it’s about protecting your hard-earned value. It’s about having a clear picture of your finances and making sure everything is in order. Most importantly, it’s about peace of mind.
If you're concerned about potential financial discrepancies or want to ensure your practice is protected, let's talk. I'm here to help you safeguard your investment and your future
-Rebecca
Practice Sales Advisors | Your Trusted Veterinary Broker.
hello@psavet.com | 912-268-2701
©Rebecca Robinson Davis, CBI and www.practicesalesadvisors.com, 2025. Unauthorized use and/or duplication of this material without express and written permission from this site’s author and/or owner is strictly prohibited. Excerpts and links may be used, provided that full and clear credit is given to Rebecca Robinson Davis, CBI and www.practicesalesadvisors.com with appropriate and specific direction to the original content.
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