How Much Private Equity Is Paying for Veterinary Practices in 2025

September 19, 2025

Corporations and private equity funds have taken a massive interest in the veterinarian sector, acquiring independent and smaller practices, raising their valuations manifold. There’s been a lot of coverage recently about private equity buying up veterinary clinics and the coinciding rise in prices.

Considering the massive growth vet medicine has seen in recent years, it isn’t surprising or particularly uncommon to see practice owners secure deals worth millions. Private equity is now the biggest buyer of vet clinics and hospitals. In this post, we’ll talk about exactly how much private equity buyers are paying in 2025 and how they’ve become the largest investors in veterinary practices.

Why Private Equity Is Still Paying Top Dollar

During the dreaded days of the pandemic, pets rose in their ranks to become family members. They always were, but that statement was true now more than ever before for more people than in history. Pet parents didn’t think twice before spending on their furry child. In fact, a survey shows that 78% would gladly go into debt for their pet, also called pet debt, if they had to. ^[1]

This emotional attachment and stable demand attracted investors and thus, from 2017 to 2023, they poured a whopping $51.6 billion into the sector, adding another $9.3 billion in the first four months of 2024.

One of the primary reasons why there are many private equity (PE) and corporations buying veterinary practices is that:

They are trying to diversify their revenue streams (Fun fact: Mars Inc., best known for Skittles and Snickers, is also the largest U.S. owner of veterinary clinics, running over 2,000 under Banfield, VCA, and BluePearl).
They have seen veterinary prices shoot up, with estimates suggesting Americans alone spent around $38 billion on their pets in 2023 on healthcare and other related services. This is a massive jump from the $29 billion figure in 2019.
By purchasing independent clinics and combining them into regional or national chains, PE firms are able to capitalize on economies of scale.

As a practice owner looking to sell, this is great news as PE is not looking to change medicine or your culture. They are simply after the cash flow and long-term growth potential of your clinic, and they are willing to pay premium prices for practices that are able to show stability, profitability, and a strong, well-managed team of doctors.

It is also worth noting that regulatory pressure hasn’t killed the momentum just yet. Both the U.S. FTC and the U.K.’s CMA have started looking at the impact of consolidation, especially around pricing and reduced competition.

But so far, they haven’t stopped deals outright. Instead, they’ve slowed things down in some markets, requiring approvals or adding restrictions. Still, as of 2025, private equity is very much in the game.

What Multiples Are Private Equity Buyers Paying in 2025

Now, let’s talk about the numbers. Valuations in veterinary sales are based upon a multiple of EBITDA, which is earnings before interest, taxes, depreciation, and amortization. Think of it as your clinic’s true operating profit.

General practices and smaller clinics command around 5 to 7x EBITDA, with strong mid-sized practices going up to 12x. Niche, specialist, or exotic practices can get anywhere between 3 to 13x EBITDA. There is always that booming location that can fetch 15x or more.

Some buyers are valuing clinics at 2-3x revenue, especially when they have strong growth trajectories. One recent industry report even showed transactions in Q1 2025 ranging from 6x to 16x adjusted EBITDA, depending on size, stability of staff, and location.

Why the variation?

It largely comes down to risk versus stability. A single-doctor practice, no matter how profitable it may be, is riskier for a buyer. If the doctor leaves, the whole business can collapse.

On the other hand, a three or four-doctor hospital with consistent profitability, good associate retention, and a loyal client base is a dream target. Buyers will bid against each other, driving the multiple higher.

In fact, some private equity groups will not even look at single-doctor practices anymore. They are hunting for multi-doctor hospitals where the revenue is not dependent on one overworked owner.

What’s Driving These High Multiples

So, let’s talk about why PE firms are willing to pay up to 15x EBITDA for a practice.

Scarcity: Despite the rise in pet owners, there is a shortage of staff, and there just are not enough quality practices in the market right now. Demand far outweighs supply, so apply basic economics and it is easy to see why when a well-run, profitable, multi-doctor practice is listed, it sparks a bidding war.
Predictable revenue: Vet clinics tend to be a safe investment for PEs. The income is recurring, and there are plenty of avenues for growth (preventive care, wellness plans, annual exams, specialization, etc.). With pets being a part of our families now, no matter the economic cycle, these services will continue, and investors love such predictability and stability.
Rising pet spending: As we stated above, owners are now spending more than ever before on their pets, even willing to go into debt for them. It is not just emergency or routine visits; they are also spending more on advanced diagnostics, specialty care, and elective procedures. This pushes revenue per patient higher year after year.
Growth through roll-ups: From PE’s perspective, paying 10x EBITDA for your clinic is a bargain if they can later sell the combined network of 500 clinics for 15x EBITDA. That arbitrage is what fuels their willingness to pay.
Real estate plays a role: It is advantageous if you own the building where you practice. Buyers tend to lease it long-term or outright purchase it.

How Deal Structures Affect Your Price

Here’s where things get interesting. The multiple alone does not matter; the way the deal is structured does. Short version: The “headline” sale price (the number in the offer letter) is only part of the story. How that number is paid, cash now, money later, contingent payments, escrows, seller notes, or equity rollovers, determines how much you actually receive, how much risk you keep, and how taxable the money will be.

Let’s understand how deal structures affect your price while selling a veterinary practice.

1. Upfront cash

Most deals tend to include a big upfront payout, crossing the 50% mark and sometimes going up to 70% to 80% of the total price.

2. Equity rollovers

Private equity often asks sellers to “roll over” 10% to 30% of the sale into equity in the larger group. This means when the PE firm eventually sells the entire network (usually within 5 to 7 years), you get a second payday. Many veterinarians have seen that the second check is equal to or even exceeds the first one.

3. Earn-outs

Some deals include a section for performance-based bonuses. If the practice is able to hit a pre-decided revenue or profit milestone after the sale, the seller still gets a cut or more money. These can be motivating, but also a double-edged sword at times if staffing is an issue or if economic shifts affect growth.

4. Seller financing

In some cases, especially with smaller buyers, the seller agrees to finance part of the sale. This makes it easier for the buyer when facing high borrowing costs.

A practice that looks like it sold for 10× EBITDA might actually be closer to 8× in cash today and 2× in earn-outs or equity. Understanding the details of a deal structure is important in order to know exactly how much the payout will be and how it is broken down.

Your Next Move: Prepare for PE-Level Value

In order to get those high valuations by PEs, practices need to prepare themselves. PE-level values do not come easy, after all. Let’s understand their mindset and valuation criteria. This knowledge will also clear what a practice needs to improve and how.

PEs want practices with multiple doctors and sustainable operations. They do not want to invest in a practice that is dependent upon the owner or just one doctor. This makes recruitment highly important.

Having associate veterinarians already in place reduces risk for buyers and makes your practice more attractive. Transitioning from a single DVM to a two- or three-DVM practice can increase value exponentially.
Your financial records ought to be clean and ready. A strong EBITDA with normalized owner compensation is critical as PE buyers want practices with profitability, not red flags. To strengthen this, develop your revenue streams. This can include offering wellness plans, subscription packages, etc., to make your income more predictable.
Leverage real estate if possible. Suppose you own your building, structure lease terms that make it appealing to buyers. And if you have expansion space, highlight the growth potential.
Don’t wait until you’re exhausted or the market cools. Some of the most successful sales come from owners who sell early, while their practice is still thriving.
Work with financial advisors such as Transitions Elite that can help structure the sale process and create a competitive bidding environment among PE groups, which drives valuations to the highest possible level.

Speaking of which…

Want Expert Help Getting the Best Deal?

We here at Transitions Elite are practice sales advisors, and our entire work is dedicated to assisting, specifically, veterinary practices get the best possible value, terms, and the smoothest of transitions for their practice.

Transitions Elite was founded by Dr. Michael Warren and Melanie Seymour, who are also the co-founders of DVM Elite. They saw a problem: the inefficiency of traditional brokers, landing poor deals, low valuations, and offering nothing but a stressful sales experience to veterinary practice owners. Our strategy is to do the exact opposite of it.

Our team is dedicated to assisting, specifically, veterinary practices to get the best possible value, terms, and the smoothest of transitions and sales experience. The bare minimum, shall we say, for the practice within which an owner puts in all their hard work.

With decades of experience, hundreds of millions in successful sales, and a process designed to create competitive bidding among premium buyers, Transitions Elite makes sure you don’t just sell, you sell at the right time, for the right price, and with the lifestyle outcome you desire.

We’re here to guide you every step of the way. Let us get you the best deal for your business. Get a free evaluation of your practice today.

Closing Thoughts

Selling your practice is easily one of the most important decisions, if not the biggest, you will make as a vet. Numbers alone cannot evaluate the value of a practice, as it has an emotional connection to you as the owner and to the community as a service of medicine.

With that said, if you’re ready to step into the next phase of your life, you should get the highest possible number for your practice, and indirectly for your future. By preparing early, watching the signs, and getting expert help, you can turn your practice into a life-changing asset and step confidently into your next chapter.

FAQs

What is a good profit margin for a veterinary practice?

A good profit margin for a veterinary practice is typically around 15%-20% after expenses. The more operationally efficient a practice gets, the higher this number gets. Anything below 10% is a red flag for buyers because it signals either high overhead or underpriced services.

What is a good EBITDA for a veterinary practice?

EBITDA varies widely depending on the size of the practice. For context, a single-doctor practice may generate $200k-$400k in EBITDA, a multi-doctor hospital often generates $750k-$2 million+, and a specialty or large multi-location group can easily exceed $5 million EBITDA. The sweet spot for private equity buyers in 2025 is usually $500k+ EBITDA, since those practices scale more easily and attract competitive bidding.

What’s the highest pay for a veterinarian?

The compensation for a veterinarian depends on their specialty, location, and ownership status. Broadly, general practitioners often earn $120k-$180k per year, whereas specialists in oncology, surgery, and cardiology can earn $200k-$350k+. Practice owners can reach numbers even higher, but that cannot be considered strictly veterinarian pay.

Who owns most veterinary practices?

Around twenty years ago, the majority of veterinary practices operated independently. However, times have shifted drastically. Today, corporate groups and private equity firms own an estimated 25%-30% of practices in the U.S. (and more than 50% in some urban markets). That said, thousands of practices remain independent.