05/04/2024
MORE CORPORATE SHENANIGANS,...
(Caveat before we begin: Not ALL corporate buy-outs are bad. Many can and do leave the practice alone to do as they wish, even if they are naturally-minded, particularly if the old owner / manager stays on, just as long as they are profitable.)
š āššššššššš ; a word of unknown and relatively recent origin (first recorded use was during the Californian gold rush, itās assumed to stem from the old Irish/Gaelic word for fox, sionnach), meaning a deceitful confidence trick, a cunning ploy.
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Who uses Village Vets in Dublin? Lovely local name with just 13 wee clinics about the place.
Well, thatās about to change having just received major investment from Inflexion of Medivet fame in the UK. Heard of them?! Awesome business. I did a piece on them some years back. I highlighted that in 2016 alone, Medivet turned over Ā£52.2m. Gross profit on that a staggering Ā£24.5mil. Better still (for them, obviously not their patrons), during that one year alone they managed to increase their operating profit by a staggering 17.3%.
Just to highlight - they managed to squeeze an extra 17.3% out of a business that size in a single year.
How did they manage that?! Well, with the near bottom supply of investment cash from Inflexion, Medivet managed to buy Complete Animal Care Ltd (suppliers of veterinary products) and took a 33% ownership in Lab Service Ltd (a veterinary laboratory), neatly sewing up the whole kit and kaboodle. More products, essentially.
So, part of this enormous jump in profits is simply a mega corporation selling more stuff to their clients. Nothing much wrong with that, perfectly entitled to do it. Pet owners need stuff. And, hopefully, once the current investigation into price gouging by veterinary corporates in the UK is complete, Medivet will come out unscathedā¦
(ššš¢šš, potentially another Irish term, stemming from the latin goia / gubia / gulbia, meaning to chisel, pierce, borrowed from old Irish gulbÄ / gulbi meaning beak or bill. āYour man there is an awful gouger, donāt go near him, use the fella down the road, the lad with the enormous wait listā¦).
ā¦unlike in 2010 when Panorama produced an undercover special on Medivet called āIt Shouldnāt Happen at a Vetsā. They planted a journalist posing as a vet nurse in training in one of their branches. She revealed evidence of questionable bills, animals poorly treated, and an unrepentant vet struck off for dishonesty. They uncovered more shady practices in one clinic, most notably one vet that was defrauding insurance companies with grossly inflated costs.
And for bringing the side into disrepute, the Royal College of Veterinary Surgeons, who governs how vets practice in the UK, of course immediately swooped in and didā¦.absolutely nothing to this vet (the RCVS too is currently under investigation for its role in corporate shenanigansā¦),
It reminds me of the Bloomberg piece back in 2017 that highlighted the Mars/Banfield approach to pet health in the US, where the vets were given software (Petware) that REQUIRED vets in clinic to recommend a whole host of products and therapies at the checkout for something as prosaic as an itch and then actual sales targets each month, in case any bloody do-gooders tried to use their own training and recommend, perhaps, that the dog stop eating McDonalds every single day of its life.
(Just to remind you, as of 8 years ago, Mars/Banfield had more than 50,000 vet health professionals on the payroll in the US alone, owning the lions share of vet clinics and hospitals and now, since buying ANTECH & Banfield, the majority of the laboratories and diagnosticsā¦so you might worry this was going on in a few other places about the US tooā¦).
āIt was definitely intimidatingā, said one vet.
Itās fair to say, with just 2/5 stars on TrustPilot, Medivet, at least at the time, left quite a lot of disgruntled UK customers in its wake.
Whatās UTTERLY IN-CREDIBLE is that Medivet has managed to turn this dire rating around in just a few years and now has an enviable 4.6 stars out of 5 (instantly and ironically relegating Trust Pilotās trust factor to somewhere around Wikipedia or RTE levels).
Shenanigans.
Unperturbed by the poonami of bad press, the Medivet juggernaut carried on regardless. In 2017, they secured another Ā£20mil to buy 50 new sites and by 2018 Medivet was up to itās 250th vet practice and today this charming company has more than 500 branches and 27 state-of-the art, 24-hour veterinary centres across the UK, Germany, Spain and France.
Yep, business is GREAT for Medivet.
And all it took was a little investment from Inflexion, private shareholders whom, it might be feared (hence the investigationā¦), care a touch less for dogs and a touch more for bottom lines.
This is who has invested in Village Vets in Dublin, just so you know.
And best of all, to ensure the success of the business, they have appointed the former Chief Visionary Officer of Mars / Linnaeus veterinary group (the other major veterinary corporation in UK) as their CVO.
Thatās Village Vets, invested in by the people that brought you Medivet, run by a guy from Mars Inc. and coming to a town near you soon.
I guess, when corporate shenanigans is your game and youāre under the kibosh, come to Ireland!
Sure didnāt we invent the word?!