On 10 October 2007, the Norfolk-based CVS Group floated on AIM. Exec Digital speaks to Mark Finn about where the veterinary group intends to go from here
By Lucy Mowatt
Recently, the CVS Group was listed on AIM, and is the only company of its kind to take such steps. For the last eight years, the business has been building a reputation as a large supplier of veterinary services across England, Scotland and Wales; it owns 128 surgeries at the present time. Mark Finn, the group’s operations director, explains that the move will give the company more flexibility to invest and expand. Not only that, but it may offer benefits to staff members that are looking to develop and progress. He was keen to stress that it will also offer enhanced public awareness of the group across the UK and make other surgeries aware of its aims.
The company operates by acquiring veterinary surgeries around the country and takes over the administrative operations of their business. The surgery is essentially left the same, which reduces any potential conflict that could occur from process changes, and means that clients keep the veterinary surgeons and nurses that they know.
Mr. Finn explains that there are certain factors which are taken into consideration when acquiring a business. He says: “What we look for is a minimum of return on investment criteria for our practices. We like them to have four or more vets, as well as shared out-of-hours services, in order to give vets quality time both inside and outside of the business. We also like them to have a minimum turnover of £500,000 and we will look at the potential to incorporate them into an existing cluster of surgeries.”
He explains that the company is approached by an average of one surgery a week looking to be incorporated in the business, which is why strict criteria are necessary. CVS has sites all over England and also has a presence in Wales and Scotland. The Operations Director explains that there is a “ripple effect” when it comes to acquisitions. He says that they find that once one surgery joins, others see the advantages and join up. There are around 15 potential acquisitions in the pipeline at the moment.
Group dynamic
Before joining CVS Group in 2006, Mark Finn was employed as the head of operations and acquisitions for the Co-op Group Pharmacy between 2003 and 2006. He explains that the two roles are very similar - looking at acquisitions in the service sector, which have to be assessed and analysed according to what they will add to the business. Mark’s other roles at CVS group include overseeing strategic focus with his Executive Colleagues and the daily operations of the group.
Colleague satisfaction can also benefit from being involved in the CVS group. Employees are trained to the highest standard, and all vets employed by the group are given an annual allowance for clinical professional development (CPD). At the moment there is a push towards encouraging vets to take on further training and become specialists and diploma holders.
This is with the aim of setting up a number of specialist referral centres across the UK. In order to develop this concept, CVS also needs to invest in the development of the sites themselves, so that they are able to meet demands.
The company also has a specialist equine centre in Wokingham, which has significant clinical and surgical capabilities, which has specialist equipment. There is even an outside arena, which is used to look for lameness and mobility problems. There are three laboratories around the UK that are capable of running tests and analysis of specimens.
These facilities are also available to surgeries outside of the CVS Group, so that others can take advantage of their specialist capabilities. Mark Finn explains: “We’re really not afraid to invest in our practices. This makes CVS an excellent place to work and means our surgeries can offer the best service.”
Animal welfare
Service is something that CVS Group takes very seriously. The Operations Director states that there is a focus on making these issues the most important part of the business. “Vets and nurses, by and large, are absolutely passionate about pets,” he says. “What we’ve got to remember is that we’re in a service industry and our clients demand very high quality standards and we should assure them about what we’re doing. We have to understand that it is a very stressful time when owners bring in their pets and the onus is very much on helping them to compassionately discuss the options they have and maintain communication throughout the process.”
The practices team up with other surgeries in the area to cover an out-of-hours service, so that vets are not on-call all of the time too. This gives clients the service that they need and the reassurance that a vet is available.
Communication is also very important when it comes to marketing. Mr Finn says that the business does not organise branding as a group, because customers will only respond to their local teams. However, he elaborates upon how practices can set up their own programs. “We’ve got a wealth of information from local surgeries that can inform marketing decisions.
We can let clients know about opportunities for preventative health, because we want to get to animals before they are poorly.” Most surgeries can offer animal health and dental checkups, as well as offer advice on diets and treatment.
He goes on to explain how surgeries can help put clients’ minds at ease. He says: “We recently saw a myxomatosis outbreak, which was almost nationwide. We were able to inform rabbit owners that we offer vaccinations against the disease. There was also an outbreak of kennel cough in one of our regions; we contacted clients and the local press to tell them that we had a vaccine against the disease. Clients really like the idea that we try to prevent illness and therefore the suffering of their animals.”
An ageing population
Mr Finn continues to describe the effect that increasing levels of pet insurance will have upon CVS Group’s business. “There’s going to be increased use of pet insurance as companies continue to promote its importance. As more and more clients take advantage of that, it’s going to result in access to more complex procedures, which is great for the clients and for us; it means we can look after pets longer and complete more involved treatments, which the client alone would not be able to afford.”
CVS Group’s strategy is to continue with its expansion, as well as to set up referral centres. Mark Finn concludes by explaining that there will be opportunities for the company in future: “There will be significant advances in medical intervention, both in human and animal treatments. This older population will mean an increasing demand for pet companions and the ageing pet population will increase the need for high quality veterinary care.”