The Veterinary Practice M&A Landscape: Trends, Valuations, and What to Expect in 2025
By the Right Fit Capital Team | December, 2024

Introduction

Veterinary practices are experiencing unprecedented interest from buyers, especially consolidators seeking strong, well-run clinics to grow their portfolios. Whether you own a single clinic or a growing multi-location group, understanding the evolving veterinary M&A landscape is crucial for maximizing your practice’s value and exit options.

At Right Fit Capital, our team specializes in connecting veterinary practice owners with reputable acquirers. Here’s what every veterinary professional should know about current trends, valuations, and market dynamics in 2025.

Why Are Veterinary Practices in High Demand?

• Resilient Revenue Models: Veterinary services have shown stability—even during economic downturns—because pet care is often considered “non-discretionary.”

• Demographic Shifts: Increased pet ownership among Millennials and Gen Z, plus rising spending on pet health.

• Fragmented Marketplace: Many independent clinics are privately owned, creating attractive opportunities for buyers seeking to build regional or national brands.

Key Trends in Veterinary M&A

• Rising Deal Volume: The number of mergers and acquisitions in the veterinary sector remains high, as both private equity and strategic consolidators compete for quality practices.

• Premium on Talent: Practices with stable teams of veterinarians and staff command higher valuations.

• Geographic Preferences: Urban and growing suburban areas remain hot, but secondary markets are seeing increased interest.

• Diversity of Services: Practices that offer specialty medicine, dental, diagnostic, or ancillary services are highly sought after.

Valuation Drivers: What Matters Most?

1. Earnings (EBITDA): Most practice valuations are based on a multiple of EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization). Higher, more stable earnings mean stronger valuation.

2. Growth Potential: Clinics with expanding client bases, additional service lines, or new location opportunities are worth more.

3. Team Retention: Buyers look for stable, committed veterinary and support staff who are willing to remain through transition.

4. Client Loyalty: Repeat visit ratios, wellness plan enrollments, and digital reputation (e.g., Google reviews) impact buyer perception.

5. Facility & Compliance: Well-maintained facilities and up-to-date licenses or certifications are important.

What’s the Typical Veterinary Practice Worth?

While every deal is unique, most small animal practices sell for a multiple of 7–12x their adjusted EBITDA. Specialty and multi-location groups may command even higher multiples.

• Other factors that can move the needle:

  • Location/population density

  • Revenue mix (preventative vs. specialty)

  • Percentage of associate veterinarians to owners

Conclusion

2025 is shaping up to be another active year for veterinary M&A. If you’re even considering a sale, understanding the current market and preparing your practice accordingly can make a major difference.

Curious what your practice might be worth? Contact us for a confidential conversation.
Or, explore our veterinary-specific services for more information.