Veterinary Practice Sales: What Q1 2025 Tells Us About Valuations, Buyers, and What Comes Next

The veterinary M&A landscape continued to evolve in Q1 2025, showing resilience in deal activity and renewed interest from both strategic and financial buyers. Coming off a year of recalibration in 2024, the first quarter of 2025 reflects a market that’s stabilizing—with smart, strategic deals taking center stage.

Key Highlights from Q1 2025

• Valuations held strong, especially for high-performing practices with solid EBITDA and doctor retention plans.
• Private equity activity rebounded, driven by clarity around interest rates and favorable long-term growth in the veterinary space.
• Buyer competition increased, particularly in major metropolitan areas and underserved regional markets.
• Consolidation (MVP + SVP merger) signals a shift in strategy—fewer platforms, but deeper investments in infrastructure, efficiency, and scalability.

What This Means for Practice Owners
If you’re a veterinary hospital owner considering a sale in the next 1–3 years, now is a smart time to assess your market position. Quality practices are still commanding strong multiples—especially when paired with strategic planning and professional representation. If you'd like to discuss the market, get in touch with Evergreen President, Gary Behler: gary@evergreenforfounders.com. Gary has over 20 years of experience working with veterinary operators and owners. 

Valuation Multiples in Q1
Multiples in Q1 2025 ranged from 6x–16x adjusted EBITDA, depending on the following key factors:

• Size of the practice:  >$1M EBITDA practices continued to see the highest demand)
• Location and growth trajectory
• Doctor retention:  buyers are rewarding clinics with stable associate retention or clear transition plans
• Revenue mix:  recurring services, wellness plans, and preventive care boost value

Shifts in Buyer Strategy

• Financial sponsors: PE-backed platforms returned to the table with more targeted acquisition strategies, preferring clinics with clean financials and room for operational improvement.
• Strategic buyers: Large consolidators (like NVA, VetCor, and PetVet) focused on geographic fill-in and expansion around their anchor locations.
• Emerging buyers: A new class of mid-sized groups is competing aggressively, offering competitive prices and often more flexible deal terms, including better/more flexible post-sale roles for owners.

Deal Terms We’re Seeing In Veterinary M&A In 2025

• Earn-outs are a common part of most deal structures with a higher % being weighted to this section if revenue concentration or doctor transition risk is high.
• Equity rollovers remain attractive for sellers looking to participate in future upside—but often require longer commitments.
• Upfront cash offers with defined transition periods remain the preferred structure for most sellers.

Looking Ahead to the Rest of 2025

• Interest rates are expected to stabilize, which should support continued buyer confidence and stronger debt-backed deals.
• Competition among buyers will increase as consolidators seek higher-quality acquisitions in an increasingly crowded field.
• Platform-level M&A (like SVP + MVP) could reduce the total number of buyers but increase deal quality and infrastructure investment.
• Owner fatigue post-COVID is still a factor. Many sellers are motivated by lifestyle and long-term planning—not just top-dollar offers.

What Owners Should Do Now

1. Know your numbers – Clean, accurate financials are the foundation of a strong offer.
2. Plan your exit goals early – Whether you want to fully retire or stay on part-time, planning now ensures you negotiate the right post-sale role.
3. Get a professional valuation – Knowing what your practice is worth today—based on real-time comps—is essential to making the right decision. Read more on why a valuation is important. 
4. Build leverage before going to market – Having an experienced advisor opens access to multiple buyers, increasing both price and terms.

Final Thoughts
The market in Q1 2025 favor well-prepared sellers. Whether you’re exploring options or ready to move forward, strategic guidance and timing are more important than ever. At Evergreen M&A, we represent practice owners every step of the way—from initial valuation to the day the deal closes.

Let’s talk if you’d like to understand your current market position or explore whether 2025 is the right time to take the next step. Call or text Veterinary Practice Advisor, Gary Behler at (484) 274-9047 or email him at gary@evergreenforfounders.com.