Veterinary Practice M&A Trends in 2025

The veterinary industry continues to be one of the most active sectors in healthcare M&A. High demand, recurring revenue models, and the essential nature of animal care continue to make veterinary practices highly attractive to both individual and corporate buyers. However, the market is evolving, and staying informed is crucial for practice owners considering their next steps.

If you're a practice owner—whether contemplating selling, expanding, or simply preparing for the future—below are five key trends shaping veterinary practice M&A in 2025.

Private Equity Interest Remains Strong (But More Selective)

Private equity (PE) firms continue to show significant interest in veterinary practices. In 2024, PE buyers accounted for over 60% of deal volume in the pet sector, up from 55% in 2023. Moreover, PE investors contributed almost 80% of the total capital invested in 2024, marking the highest percentage in the past five years. This means that, for practices able to garner the interest of PE buyers, they are likely to obtain a higher purchase price than that of an individual buyer, though it will likely come with more post-deal requirements, such as mandatory employment terms and earnouts (incremental payments based upon practice performance after the sale).

While PE firms are still paying well for strong practices, those same firms are becoming more discerning, focusing on practices with strong operational metrics and differentiated value propositions. Practices with solid financial performance, efficient operations, specialty services, and associate veterinarians in place to help ensure longevity of the practice tend to retrieve higher values.

Specialty Practices Yield Higher Multiples

Valuation multiples for veterinary practices differ based on the type of practice and respective earnings. As of Q1 2025, multiples based upon Earnings Before Interest, Taxes, Depreciation, and Amortization (“EBITDA” – the metric upon which most buyers will place a valuation) for private veterinary practices tended to linger in the mid to high single digits. 

However specialists and exotic animal clinics obtained significantly higher multiples. Unsurprisingly, these figures indicate that specialized practices generally command higher multiples due to their niche services and expertise. 

Real Estate Plays a Strategic Role in Transactions

Real estate considerations are increasingly influencing M&A decisions. Practices with underutilized space or facilities that can be easily converted into additional exam rooms or treatment areas are in higher demand. Buyers view such opportunities as cost-effective ways to expand services post-acquisition.

Anecdotally, we have seen increased interest by private (individual) buyers seeking to obtain the real estate when owned by the practice seller. Though most (but not all) PE-backed platforms shy away from acquiring the real estate and focus mostly on obtaining a favorable lease, individual veterinarians are increasingly seeking to pay themselves rent by purchasing the building as well as the practice.

Regulatory Scrutiny and Market Stabilization

The veterinary M&A market has reached a level of cautious stability in 2025. Regulatory bodies are closely monitoring market concentration, pricing practices, and transaction structures. This increased scrutiny has led to more measured activity, with buyers and sellers adapting their strategies accordingly. There is a similar trend across much of healthcare M&A, as many states are closely analyzing corporate control of medical practices.

It is worth noting that there are increased market headwinds given a nervy economic climate in early 2025. Deals are still happening, albeit at a slower pace.

Well-Prepared Sellers Achieve Better Outcomes

Preparation is key to a successful transaction. Sellers who proactively address compliance issues, optimize their practice's operational efficiency, and present clean financial records are more likely to attract favorable deals. Additionally, understanding the current market dynamics and aligning expectations with industry trends can significantly impact the outcome of a sale.

Final Thoughts on Veterinary M&A

Veterinary M&A deals are more complex than ever — and the right legal support can make a measurable difference in deal value, timing, and risk.

From initial Letter of Intent (LOI) review to purchase agreement negotiation, lease assignment, employment contracts, and compliance with evolving corporate practice of medicine laws, sellers and buyers alike benefit from working with counsel who understands the veterinary space.

If you're thinking about selling, expanding, or planning for the future, we're here to help. Reach out to our team to learn more.