Most practice owners know their revenue, payroll, and bank balance. Far fewer can clearly answer how much the practice actually produced, whether owner compensation is appropriate, where the cash is going, or what the business may be worth.
Trinity's Practice Financial Analysis (PFA) uses the records you already have, including financial statements, tax returns, payroll, production, compensation, debt, and ownership information, to show how the practice is performing, what ownership is producing, where the cash is going, and what the business may be worth. We use that analysis to support decisions about compensation, distributions, staffing, pricing, debt, expansion, partner buy-ins, succession, sale readiness, retirement-plan design, and how the practice fits into the owner's personal financial plan.
Practice owners usually come to us because they have financial statements but do not have a clear way to use or interpret them. Others need to make a decision and want to understand the full financial picture first.
We trace the difference between reported profit and actual cash by accounting for debt principal payments, equipment and facility spending, owner distributions, working-capital changes, and other uses of cash that do not appear on the P&L.
See where the cash goesWe separate compensation for clinical work and management, rent, distributions, practice profit, and value retained in the business. This shows what you are being paid for the work you do and what the practice is producing because you own it.
See how we break down owner economicsBefore hiring, expanding, adding a partner, planning succession, or preparing for a sale, we look at normalized earnings, sustainable cash flow, staffing costs, debt capacity, benchmark context, and practice value. This helps determine what the practice can reasonably support without putting unnecessary pressure on cash flow or the owner.
See what the practice can supportWe start with an introductory call to understand the practice and the questions you want answered. From there, you securely share the available records, we build and review the PFA, identify the next action items, and help you apply the findings over the following year.
See how the engagement worksThe P&L shows the practice's revenue, expenses, and net income. It does not show every movement of cash or how much is actually available to the owner.
Debt principal payments, equipment and facility spending, inventory and working-capital changes, and owner distributions can all reduce cash without reducing reported profit in the same period.
Trinity reviews the P&L and balance sheets together, then builds a cash flow statement showing how much cash the practice generated, where it went, and whether the result reflects reinvestment, debt reduction, owner distributions, or an operating issue.
A growing practice may be using cash for equipment, facility improvements, or working capital. A practice carrying significant debt may use much of its cash to repay principal. Neither result automatically means something is wrong. The question is whether the use of cash is intentional, sustainable, and consistent with the owner's priorities.
Trinity's equine and companion animal benchmark research reports these uses of EBITDA. Rounded reference points across the available reports are approximately:
These are rounded reference points from Trinity's available veterinary benchmark reports, not a recommended allocation or target. A startup, growing practice, or practice carrying significant debt may use cash very differently from an established practice with limited reinvestment needs.
The PFA separates what the owner earns for working in the practice from the return created by ownership. That distinction matters when evaluating compensation, distributions, partner arrangements, succession, and personal wealth.
Identify compensation tied to the owner's day-to-day role rather than treating every dollar received as practice profit.
Determine what the practice produces after the owners are paid appropriately for their work.
Account for the other ways ownership may create value, especially in a multi-owner practice or when real estate is involved.
Revenue alone does not show whether the practice can afford another veterinarian, a facility, additional debt, an ownership transition, or larger distributions. We test the decision against sustainable earnings, cash flow, and the owner's wider plan.
Test added payroll, benefits, expected production, ramp-up time, and the effect on existing owners and staff.
Evaluate equipment, construction, occupancy, financing, working capital, and the revenue assumptions required to support the commitment.
Connect compensation, distributions, normalized earnings, practice value, debt, and ownership terms before setting the structure.
Determine how much cash can leave the practice without limiting operations, debt service, reinvestment, or future flexibility.
Identify earnings, owner dependence, documentation, cash flow, and operational issues that may affect readiness or value.
Evaluate how much wealth the practice needs to create and how the decision affects retirement, taxes, liquidity, and financial independence.
The PFA gives our team a clear understanding of how the practice operates, what it is producing, where the cash is going, and what ownership is creating for you. That financial foundation allows us to help answer the questions you have now and the financial, ownership, or practice-management questions that come up over the following year.
Once the analysis is complete, you are not left to interpret it on your own. For the next year, you can bring us financial, ownership, and practice-management questions as decisions arise.
The scope and fee are confirmed before the engagement begins based on the practice structure, information available, and questions the analysis needs to address.
The scope depends on the practice and the questions that need to be answered, but the engagement generally follows five steps.
Discuss the practice, ownership structure, current financial questions, and the decisions you are trying to make. We use the call to determine whether a PFA is the right starting point and what the analysis should cover.
Provide the available financial statements, tax returns, payroll, production, debt, ownership, and supporting information through a secure data-sharing process. We review the records and identify anything else needed to complete the analysis.
We build the cash flow statement, separate owner compensation from ownership return, normalize earnings, apply relevant veterinary benchmarks, and estimate practice-value ranges. We then walk through the findings with you and answer questions about what the numbers mean.
Use the findings to identify priorities, make decisions, and assign clear action items. That may include changes to compensation, distributions, staffing, debt, pricing, expansion, ownership, succession, or personal financial planning.
For the following year, you can continue to bring us financial, ownership, and practice-management questions as they come up. We help apply the PFA to new decisions, track progress, adjust the plan when circumstances change, and coordinate with your CPA, bookkeeper, attorney, or other professionals when needed.
The exact information depends on the scope, but we typically request three years of P&L statements and balance sheets, payroll and owner-compensation information, production reports, debt schedules, tax returns, and relevant legal or operating documents. You do not need to have everything organized before the first call.
We typically quote the fee during or shortly after the first call, once we understand the practice, the questions you want answered, and the expected work after the analysis. The scope and fee are confirmed before work begins so everyone is clear on what is included.
Timing depends on the practice and the quality of information available. Once we have all requested records, we can typically complete the analysis within two weeks.
Bookkeepers maintain the accounting records, and CPAs provide tax advice and tax preparation. Trinity uses the available information to interpret profitability, owner economics, cash flow, normalized earnings, benchmarks, and planning implications. The PFA does not replace either professional.
Yes. The PFA includes estimated internal transfer and external sale value ranges based on normalized earnings, available financial information, and current planning assumptions. The goal is to give you a practical range for ownership, succession, and sale-readiness decisions. It is not a formal appraisal or a guarantee of what a buyer would pay.
Absolutely. With your authorization, we can work directly with your CPA and bookkeeper to resolve questions, obtain requested information faster, review compensation or tax assumptions, and clarify which professional should address each open issue.
Yes. We typically complete a PFA before a sale or ownership transition so the owner understands normalized earnings, owner compensation, cash flow, documentation, and likely value before making decisions. If a buyer or LOI is already involved, the work usually shifts to our transaction-planning process, which follows a different scope and timeline.
Trinity works with veterinary practice owners across the United States, including small animal, equine, mixed animal, specialty, emergency, mobile, and multi-location practices. The scope is adapted to the practice structure, available records, and decision being evaluated.