EBITDA Benchmarks in Vet Practice Sales: What Clinics Sell For

You don’t need to be a financial wizard in order to understand the basic concept of markets going through hot and cold phases. If you’re a veterinary practice owner looking to sell your practice, you might be wondering what multiple of EBITDA you can expect for your practice in 2025.

The good news is that in 2025, valuations are going strong, though the multiple depends on several factors. In this guide, we’ll break down EBITDA benchmarks in vet practice sales, what EBITDA is, the typical multiples veterinary practices sell for in 2025, what influences your valuation, and the difference between corporate vs. individual buyers.

By the end, you’ll understand the full picture of how practice valuations work and how to position your practice for the best outcome.

What Is EBITDA and Why It Matters

First things first, what is EBITDA? The term EBITDA may not be something you, as a veterinary practice owner, are familiar with or at least hear on a daily basis. However, accountants, private equity professionals, and financial advisors are all using this term on a regular basis.

EBITDA stands for Earnings Before Interest, Taxes, Depreciation, and Amortization, and it is a financial metric using which it is a term you must familiarize yourself with, for it is the basis via which the profitability of your practice is measured.

Net income tends to be quite misleading, as it includes other expenses like interest payments, personal expenses, taxes, and one-time charges, which don’t reflect ongoing business performance. EBITDA strips all those variables away and gives a buyer a real number that showcases a practice’s cash-generating ability. Quite an important metric for both the buyers and the seller.

As an example, a practice may show $400,000 in net income. But after adding back depreciation, interest, and some non-recurring expenses, EBITDA could be $600,000. That $200,000 difference can significantly boost your valuation once multiples are applied.

Why Does It Matter?

Corporate groups and investors are primarily interested in stable practices with repeatable cash flow with real growth potential. They want to know: if we acquire this practice, will it be profitable for us? EBITDA provides that better lens than net income or gross revenue.

Two practices with the same revenue may look very different on paper. One may be highly efficient with a 20% EBITDA margin, whilst another runs at 10%. Both may be grossing $2 million, but one is worth much more. EBITDA levels the playing field and helps investors determine which one is the more profitable investment.

It is the basis for multiples. When you hear about vet practices sales that went for 8x EBITDA, it means exactly that: buyers multiply your EBITDA by a certain factor to determine your value. Without knowing your EBITDA, you can’t estimate your worth.

Average EBITDA Multiples for Vet Practices in 2025

So, let’s talk about what veterinary practices are actually selling for today, in the year 2025. Most veterinary practices appear to be selling for 6x to 12x EBITDA. These ranges are often discussed in the context of EBITDA benchmarks in vet practice sales, since they show where your practice realistically fits compared to others on the market.

Where a practice lies within that range depends largely upon its size, profitability, growth prospects, and the buyer. Solo or small practices seem to be fetching 4x to 6x EBITDA. Multi-doctor general practices typically range between 7x to 9x, as these are less dependent upon a single individual and thus have stronger management, systems, and reliability.

Specialty and emergency practices, due to their nature, earn a lot even if they are smaller in size. They can sometimes see 12x or more EBITDA because they drive higher revenue per client and are difficult to replicate. This makes buyers like specialist practices quite a bit.

Multiples have been climbing steadily over the last decade for a number of reasons. Consolidation, however, this upward trend has started to slow down slightly. Investors are becoming more selective, focusing on profitable and multi-doctor practices along with practices in a strong demographic, for those that still command premium valuations.

What Affects Your Multiple

Why do some practices sell for 12x while others only get 5x? The answer comes down to both operational and financial health. Buyers use EBITDA benchmarks in vet practice sales as a baseline, but your staffing, location, and profitability ultimately determine if you’re above or below the average.

And just like any other business, the following factors affect its final valuation:

1. Size of the Practice 

Bigger isn’t always better, but the scale matters. A practice with ample staff is able to do more work in less time, directly contributing to better sales. So, multi-doctor practices consistently sell for higher multiples because buyers know they’ll continue running smoothly even if one doctor leaves.

2. Profitability and Margins

As we stated above, it isn’t just about revenue. Buyers want EBITDA, and they want margins on the higher percentages. Similar to our example above, a practice with the same revenue but different EBITDA, the one with a higher EBITDA percentage gets favored..

3. Recruitment and Staffing

There is a DVM shortage, so already having stable associate doctors is far more attractive than those overly reliant on the owner.

4. Location and Demographics

Places with more pets and affluent pet owners are markets wherein it’s easier to drive higher multiples. So, a place in a rural area with not-so-many pet owners will sell at a discount, unless they excel in another location, which can make them a profitable investment.

5. Growth Trajectory

Tied to where we left off in the above point. If a practice is in a rural area but it’s on a growth trajectory, be it for a sustainable reason like development of the area (which would attract more people, growing the market), it would sell for a higher multiple. Buyers pay for future potential, not just current numbers. A practice with 10% year-over-year growth often gets a higher multiple than a flat practice, even if EBITDA is lower.

6. Client Retention & Recurring Revenue

Loyalty results in predictable revenue, and having multiple sources of revenue like that, along with offering specialty services, wellness plans, etc, means the business is thriving. Buyers love a business that is thriving in income, is stable, multiple-serviced (in some cases, like this one and predictable.

7. Systems and Operations

Businesses that are already well run, with strong management, good bookkeeping, and operations that run themselves are always a green flag. It means less chaos, which is always a green flag.

8. Owner Dependency

If a business is too dependent upon the owner, it is at risk of falling the moment the owner changes. A practice needs to help their company grow enough to run without them managing it, ideally. For such teams, buyers pay more.

Corporate vs. Individual Buyers: What They Offer

Needless to say, there is a huge difference between the two primary kinds of buyers: Individuals or corporates. The type of buyer you choose to do business with will make a massive impact on your plans for your practice. Here are their offerings:

1. Individual Buyers

Let’s answer the bigger question first: who are these individual buyers? Truth is, with individual buyers, it is hard to predict because the sample size is far too large. However, we’ve observed they tend to be newer graduates or local competition.

Individual buyers tend to want you to stay on for longer, and discussing the terms of legacy is often easier. This means you’re more involved in the process, which can be a good or bad thing depending on personal preference.

The issues begin with the fact that individual buyers rely mostly upon bank financing (SBA loans), which limits how much they can pay, though they do offer 4x-6x EBITDA.

Arguably, the biggest offerings of an individual are continuation of legacy, local community impact, smoother and more involved (if preferred) client relationships, and an overall closer alignment to your values as an owner.

2. Corporate Consolidators & Private Equity-Backed Groups

PE firms and corporates simply have more access to capital, and so they typically offer 7-12x EBITDA, compared to 4-6x from individual buyers and, again, usually, a significant portion of it is upfront, relying less upon bank financing or seller notes.

Corporate buyers usually take over HR, payroll, compliance, vendor negotiations, and recruiting, allowing you to exit quicker or stay on whilst focusing only on the medical practice side of things. Often, they offer improved salaries and benefits, which helps your team grow financially, and their morale stays up.

As for your legacy, consolidators can and typically do keep your branding and allow you to continue as the medical director, preserving culture while scaling operations. However, this is always a negotiable factor.

How to Boost Your Practice’s Valuation

If you’re planning to sell your practice anytime soon, the time to start preparing for it is now. Ideally, 1-3 years, the longer the better, as there are multiple strategies to use if you wish to be at the higher end of the multiples range. Preparation is everything:

1. Recruit and Retain Associates: Nothing drags down value like a single-doctor dependency. Adding even one associate can double or triple your valuation.
2. Optimize Profitability: EBITDA margin is the financial metric of focus here, and we’re aiming for 15% to 20% consistently, not just a good couple of months. Review expenses, renegotiate vendor contracts, and ensure doctors are producing at or above the national average ($540,000 per DVM annually).
3. Strengthen Operations: Buyers want a business that requires minimal effort to start earning profits from, such businesses are called turnkey, and our aim is to become that. It can be done by building for HR, scheduling, and client management. Document procedures so the practice isn’t tied to you personally.
4. Build Recurring Revenue: The more revenue streams that are predictable and recurring you have, the better.
5. Enhance Digital Presence: By having minimal or no presence online, you’re doing your business no favors, and every modern investor knows that. They want a practice with a strong presence both locally and online. A practice that ranks well on Google and has higher engagement with its current and potential clients, the better.
6. Plan 2-3 Years Ahead: Waiting until you’re burnt out and desperate to sell is not a good position to be in. By preparing early, you can stabilize profitability and hit higher margins. This makes your practice much more appealing when measured against EBITDA benchmarks in vet practice sales, allowing you to command stronger multiples.

Want Help Getting the Best Multiple?

A practice’s objective financial value is only as much as the offers it gets. Alas, without speaking the language of the buyers, it is hard to showcase to them the value of your practice.

Our co-founders, Dr. Michael Warren and Melanie Seymour, who also lead DVM Elite, a well-known veterinary growth consultancy, saw this problem and decided to form the practice sales advisory firm known as Transitions Elite. We specialize in helping veterinary practice owners maximize the value they get out of selling their business.

One of our happy clients includes a practice owner from the Midwest of the USA, hoping they sell their practice for around $5 million. The deal was closed at $12.5 million as our team implemented our Elite Selling Process™.

Unlike general brokers, we don’t introduce you to random buyers, but qualified ones. We bring in multiple qualifying leads, creating a bidding environment that raises your multiple by several points, resulting in a much higher final price than expected.

Our veterinary practice sales services also help you:

• Preparing financials to showcase maximum EBITDA.
• Positioning your practice to attract corporate buyers.
• Negotiating favorable deal terms (cash at close, equity, earn-outs).
• Ensuring you transition smoothly without losing team or client trust.

The time to start preparing is now. Get a free evaluation of your practice today.

Closing Thoughts

Veterinary practices are selling for stronger multiples, but the practice still has to earn its way into the hierarchies of the EBITDA percentage. The smartest sellers study EBITDA benchmarks in vet practice sales closely, then take action to improve operations, recruit associates, and strengthen profitability before entering the market. With the right team guiding you, your practice sale can unlock a more fulfilling lifestyle.

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