Picture this: You’ve spent decades building your practice, sacrificing weekends, holidays, and countless family moments.

Now imagine watching half of that value disappear because of one decision about timing. So, how much is my veterinary practice worth?

Here’s a shocking stat that’ll make you sit up straight: Veterinary practices are selling for 15x their EBITDA in today’s market.

That’s more than nearly double what we saw just a few years ago.

Let me share a real story that’ll drive this home.

Dr. Cheryl from New York received her first offer of $1.2 million for her practice.

Pretty good, right?

But through our Elite Selling Process™, she ended up closing at $3 million – more than double her initial offer.

You might be thinking, “That’s great for her, but what about my practice?”

Let’s dispel Some Common Myths First

“I need to wait until I’m ready to retire to sell.”
Not true – many of our most successful sales come from doctors in their 40s and 50s who continue practicing with less stress and more freedom.

“My practice is too small to attract premium buyers.”
Tell that to Dr. Lonnie, who turned his small-town practice into a multi-million dollar sale.

“I’ll lose control of patient care if I sell.”
Dr. Randy still practices exactly as he always has, just without the administrative headaches.

“My staff will leave if I sell.”
Actually, most staff end up with better benefits and opportunities post-sale. Dr. Beth’s team received $10,000 retention bonuses and better benefits packages.

However, this isn’t just about money.

It’s about securing the future you’ve worked so hard for. It’s about ensuring your staff continues to thrive, your patients receive the same level of care, and your legacy lives on.

As Dr. Randy put it, “I’ve worked and sacrificed so much to get to this point. I needed to know my practice would be in good hands.”

And there’s a window of opportunity.

• In 2021, practices were selling for 12-13x EBITDA.
• By late 2023, some of those multiples had dropped to 8-9x.
• For a practice with $500,000 in EBITDA, that’s a difference of $2 million in value – gone.

Why Traditional Valuation Methods Don’t Work Anymore

Gone are the days when you could just multiply your annual revenue by some magic number and call it a day. The market’s evolved way beyond that.

Private equity firms are revolutionizing how practices are valued, and they’re willing to pay premium prices for the right practices.

But here’s the catch – they’re also getting pickier about what they buy.

What Really Drives How Much Your Veterinary Practice Worth

Let’s break down what buyers are actually looking at.

Location and Growth Potential

A practice in an urban area with room to expand will typically command higher multiples than a rural practice with limited growth potential. But don’t count yourself out if you’re rural – we’ve seen some incredible deals in smaller markets too.

Practice Revenue and Profitability Trends

Buyers aren’t just looking at your current numbers. They want to see consistent growth and healthy profit margins.

Think of it like selling a car – one that’s well-maintained with service records will always fetch more than one that’s just been given a quick wash.

Team Stability

Your staff isn’t just an expense on your P&L – they’re a massive value driver. A stable, experienced team can literally add millions to your practice’s worth.

Just ask Dr. Randy and Beth, who saw their staff’s stability help drive an incredible valuation.

Technology and Equipment

Modern, well-maintained equipment isn’t just about looking good – it shows buyers you’re invested in the practice’s future. But here’s something most people don’t know: sometimes older equipment that’s paid for can actually be better for your valuation than new equipment with loans attached.

The Million-Dollar Question

EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) is the magic number buyers care about most. But here’s where it gets interesting – your EBITDA might be way higher than you think.

Consider Dr. Lonnie’s case: His accountant’s EBITDA calculation was solid for tax purposes, but when we adjusted it through the eyes of a buyer, we uncovered nearly 40% more value that was previously hidden.

Why Independent Practices Command Premium Values

When practice owners approach me and ask; “how much is my veterinary practice worth? I share with them a fascinating insight: many independent practices have sold for more than corporate franchises.

Why?

Because independent practices typically have something money can’t easily buy – authentic community connections and genuine client loyalty.

Take Dr. Randy’s practice in South Carolina. Despite being in a small town with an average household income of just $40,000, his independent practice commanded an exceptional multiple because he’d built something special: a practice with heart, soul, and a deeply loyal client base.

As he put it, “We’re not in the multi-million dollar neighborhoods. We’re talking about just plain old people.”

The big buyers know that independent practices often have stronger client relationships, more stable staff, and better community reputations than corporate locations.

That’s why they’re willing to pay premium prices for practices that have maintained their independence while proving their profitability.

So Why Does Timing Matter For How Much Is My Veterinary Practice Worth?

The market for veterinary practices is hotter than ever, but it won’t stay this way forever. We’ve seen the number of active buyers drop from 90 to about 20 in recent years.

These remaining buyers are serious and well-funded, but they’re also more selective.

Remember the story of Dr. Aaron?

He was in his early forties and thought he was too young to sell.

But when he saw the current multiples and understood the market timing, he made the move – and now he’s enjoying both financial freedom and a better work-life balance while still practicing medicine.

The Cost of Waiting Too Long

Here’s a harsh truth that nobody likes to talk about: waiting until you’re “ready” to sell often means waiting until it’s too late to get top dollar.

We’ve seen this story play out too many times.

Consider what happened with Dr. Williams on the East Coast.

She had built a thriving 5.5-doctor practice but waited until health issues forced her hand. By then, her reduced work schedule and declining production had significantly impacted her practice’s value. The difference? Millions left on the table.

But it’s not just about age or health.

Market dynamics can change overnight – just ask the practice owners who were planning to sell in early 2020 when COVID hit. Or those who waited through 2023’s interest rate spikes, watching buyers’ appetites shrink.

Here’s what most advisors won’t tell you: the “perfect time” to sell rarely aligns with when you’re personally ready to exit. Most buyers want you to stay on for 2-3 years post-sale anyway.
That means if you’re planning to retire at 65, you need to start this process in your early 60s – not after.

The Next Step Is Yours

If you’re asking yourself; “how much is my veterinary practice worth?” You don’t have to guess. We’ve helped hundreds of practice owners understand their true value and maximize their outcomes.