Who Is Buying Veterinary Practices in Today’s Market

Stories of veterinary practices being sold for a life-changing amount of money aren’t unheard of, especially if you are in the space yourself. Sometimes, a corporate group comes knocking at the door and makes an unsolicited offer. That is a more dramatized version of what actually happens, though.

In 2025, the veterinary industry is going through a wave of consolidations and investment opportunities unlike anything seen before. But who exactly is buying veterinary practices today? And what makes their values shoot up so high?

In this post, we will talk about who is buying veterinary practices, what is driving demand, and how you can position your practice to get the best possible outcome when it is time to sell.

Why Veterinary Practices Are in High Demand

Over the last decade, veterinary practices have become one of the most sought-after assets in the healthcare sector, and the reasons below make it clear why:

• Increase in Number of Pet Owners: Global pet ownership has been on the rise, along with the willingness of people to spend a healthy amount of money on their pets. The logic is simple: more pets = more demand for veterinary services.
• Resilience Within the Business: The pandemic shook up the world. Many industries crumbled, and many suffered huge losses. Despite the economic downturns caused by COVID-19, pet owners continued to prioritize veterinary care for their pets. Since pets are increasingly considered family members, veterinary services are often seen as “recession-resistant.”
• Predictability: The nature of veterinary practices makes them predictable. Owners can often enjoy a consistent, recurring revenue stream from wellness exams, vaccinations, preventive care, and ongoing treatments.
• Fragmented Market: Investors are often looking for high-value businesses like veterinary practices that exist in a fragmented market. With thousands of independent practices, there is an opportunity for larger organizations and investors to acquire and consolidate.
• Labor Shortages Driving Demand: With veterinarians in short supply, acquiring existing practices with established teams is often easier and more attractive than building a new practice from scratch.

To put it in a nutshell, veterinary practices present themselves as fantastic investments. They are stable, profitable, and have ample potential for growth, attracting both private and institutional buyers. Speaking of which…

Corporate Consolidation: The Big Players

The most visible trend in veterinary medicine is the rise of corporate ownership.

National and international consolidators have acquired thousands of practices. Brands like Mars Veterinary Health (yes, the same company that makes Mars bars, Snickers, and Dove soap), National Veterinary Associates (NVA), and MedVet dominate the market.

These groups operate under a “roll-up” model, in which they buy smaller practices, improve operations, and increase profit margins.

From the seller’s perspective, corporate buyers of vet clinics often pay premium prices. If your practice has multiple doctors and is profitable, you can expect higher multiples. Furthermore, they often offer continued employment as a medical director or associate while relieving you of the burden of management.

However, for objectivity, it is worth noting that selling to a corporate buyer can also mean less control over culture, hiring, or clinical autonomy. Terms can be favorable, but owners should weigh the trade-offs carefully.

Role of Private Equity in Veterinary Medicine

Private equity, simply called PE, has played a massive role in the growing prices of the veterinary industry as it has poured billions of dollars into it. These firms are behind many of the corporate consolidators, yes, but they invest directly in mid-sized groups with strong EBITDA margins, often 15-20% or more, with predictable and recurring demand and opportunities for consolidations and eventually reselling for a profit.

Private equity buyers in veterinary space typically follow this method:

• Acquire a practice that is on a growth trajectory with predictable and recurring income
• Expand aggressively by acquiring additional practices in the region.
• Increase operational efficiency of the practice by investing in and centralizing daily operations, HR, marketing, and supply chain.
• Exit in 5-7 years by selling to a larger consolidator or another PE firm, often at a significant profit.

The reason why practice owners often prefer PEs over larger corporations is that they get access to investment capital and professional management support, while still keeping some ownership (equity rollover).

Independent Buyers and Small Groups

Not every sale is to a giant corporate group, as many independent buyers and regional veterinary groups also, many a time, purchase a private practice.

For example, many young veterinarians dream of ownership, but the rising prices of practices make it difficult for them to acquire one. So, individual buyers, like that, often target smaller practices or those existing within a less competitive market.

Independent buyers do not have a large chunk of cash ready to go on a dime, so often, they finance the purchase supported by SBA loans or bank loans.

Then, there are regional groups, which are increasing in number. Small groups of two to ten practices are becoming increasingly common and for good reasons. They tend to offer more flexibility and maintain a “local practice” feel, which naturally, often lacks when it comes to PEs or corporations, all the while still benefiting from shared resources.

Who Benefits from Independent Buyers and Small Groups?

Sellers who wish to preserve their culture, their client relationships, and to a great extent, their significance within their practice often choose to sell their practice to a small group or individual veterinarian. It’s a far more appealing option for them than wearing the corporate tie, though the purchase prices can be and are usually lower in comparison.

What’s Driving Higher Valuations Today

As we’ve mentioned before, veterinary practice valuation is on the higher side of things today. Veterinary practices are valued on a multiple of EBITDA, and those multiples have climbed dramatically in recent years for strong practices. In order to get the best deals, a practice owner needs to understand what buyers are looking for. Here’s what piques a buyer’s interest:

• Doctor Count and Stability: A practice with multiple doctors, especially with three or more doctors, is like a goldmine for investors. It is extremely sought after because it indicates the practice isn’t dependent upon the single-owner doctor and can run without them.
  
• Revenue Growth: Buyers aren’t looking for a single good month. They want consistency. A consistent growth of around 2-3 years is, again, very appealing to the buyers and thus, it attracts higher multiples.
  
• Profitability: Again, buyers aren’t looking for a single month of profits. They’re looking for efficient operations and strong margins over a course of time, and these are, naturally, highly rewarded, fetching higher multiples.
  
• Location and Demographics: A café on the streets of Paris would naturally get more traction than one in some rural area with a very limited demographic. So, practices in urban or high-income areas, where pet owners are plenty and they can and will spend money on their pets, command premium multiples.
  
• Recruitment Success: It is well known that there is a shortage of Doctor of Veterinary Medicine, or DVMs, in the market. So, a practice with a stable, capable, and happy team will be extremely appealing.

Even two-doctor practices can now be worth millions.

What Sellers Should Watch Out For

Knowing how to sell a veterinary practice properly also means acting fast while the market is hot. However, that isn’t to imply there aren’t risks. You have to pay close attention to several things. While the market is hot, it’s not without risks. Sellers should keep an eye on. Let’s look at the most common traps:

1. Deal Terms and Cultural Fit

The payout number can be extremely tempting, and often hard to look past. However, focusing only on the headline means missing out on the fine print.

A seller needs to thoroughly go through things like the payout structure, earn-outs (how much is immediate and how much is reliant upon stocks or future performance), employment agreements, etc. Not just that, selling to the wrong buyer, even for the right price, may or may not be the decision you’d make. There are many buyers who’d let your practice’s culture stay as it is, whilst others might change things around, potentially disrupting your staff and client relationships.

Whether that is something you’d be okay with is entirely subjective.

2. Private Equity Timelines

Some PE groups have a business strategy involving quick flips, which tends to hurt long-term stability. To make sure this isn’t the case, look out for two things:

1. Non-Compete Agreements: Watch out for overly restrictive clauses that limit future work options.
   
2. Tax Planning: Poor structuring could leave you with a heavy tax bill. Get professional advice early to rectify this issue before it turns into a bigger battle.

To avoid these common pitfalls, it is recommended to work with professional veterinary sales advisors.

How to Position Your Practice for Maximum Value

If you’re considering a sale, the time to start planning is much, much before the day you actually make the sale. Why? Because the sooner you start planning, the more time you have to fill in the gaps and maximize the potential value your practice can fetch.

Here are some steps that you can take:

1. Grow revenue consistently

Buyers are attracted to stability and growth. They absolutely delight at the sight of upward trajectories. Even if it’s modes, but there is steady growth, year after year, it showcases that your practice is healthy and thriving. A major green flag. So, focus on strengthening things that are working for you, focus on client retention and perhaps consider adding services with strong demand (such as dentistry or specialty care).

2. Diversify production

If most of your clinic’s income depends upon a single doctor, especially if that doctor is you, the owner, buyers will and do see it as a risk. So, to counter this, encourage your associates to build their client base, and structure schedules in such a way that revenue is balanced across the team, not just limited to a single doctor. This not only reduces risk for buyers but also makes transitions smoother.

3. Improve profit margins

Top-line revenue is great, but without profitability, it isn’t the ideal situation. As a practice owner, aim to trim down any unnecessary expenses, check and perhaps negotiate supplier contracts and make sure that your pricing reflects the actual value of your service. Monitoring EBITDA (earnings before interest, taxes, depreciation, and amortization) closely will give you the clearest picture of your financial performance.

4. Recruit and retain veterinarians

Having a team of veterinarians is a major value driver, but at the same time, retention and stability count. Loyalty commands a ton of respect and higher valuations. A way to promote loyalty within your team is by providing them with proper, competitive compensation, providing them with continued education, and a supportive workplace culture. This keeps DVMs for a longer term.

5. Document processes

Standardized workflows and clear management systems all show a buyer that your practice runs with efficiency and even without needing somebody watching over it all the time. For your practice, make sure that all important documents, like medical protocols to HR policies, are all laid out clearly. This will reduce risk and boost confidence in the sustainability of operations after the sale.

6. Maintain clean financials

Messy or incomplete books are a red flag for potential buyers, so make sure your accounting is accurate, up to date, transparent, and clear to understand. Consider annual reviews with a CPA familiar with veterinary practices. Buyers will analyze every line item, so clarity is essential.

Consider your practice like a collector’s edition car, essentially, not a job. You want it to stay nice and shiny, running well, so when you go and put it up for sale, you’ll get the best possible price for it.

Why Work With Experts Like Transitions Elite

Selling a veterinary practice isn’t the simplest task because there is no putting up a “for sale” sign and then hoping for the best. The process is complex, as one might expect when selling a business. Working with a practice sales advisor like Transitions Elite becomes the logical decision here. Our support goes beyond what a traditional broker offers.

We kept seeing practice owners often not getting the results expected, so we founded Transitions Elite to make sure you get what your practice is really worth.

• With our team of expertise, we assist you in determining the true market value of your practice, not merely guesswork.
• We create a bidding environment, bringing multiple buyers to the table, getting multiple offers, and, since we’re in a bidding environment, these offers will account for a driven-up price.
• We protect your interests, financial and otherwise, so you get the best deal from a monetary and cultural perspective.
• From initial valuation to closing, we help make it smooth, profitable, and stress-free.

Our success stories show how we consistently achieve higher multiples and better terms for our clients than they would by selling on their own or with a traditional broker, one that doesn’t understand the intricacies of the medical industry.

If you’re even considering a sale in the next few years, talking to our team early can help you prepare and position your practice for maximum value. Get a free evaluation of your practice today.

Closing Thoughts

The veterinary industry is experiencing huge demand from various sources now, corporate consolidators, private equity, independent buyers, you name it.

While this definitely creates incredible opportunities for practice owners, now is the time to make the right decisions because selling is a complicated process. Knowing who the buyers are, which ones are truly offering real value, and how to prepare your practice for the best value.

If you’re exploring your options, don’t go it alone. Work with experts who understand both the buyer and seller perspective, and can help you achieve the best possible result. 

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