The Market & Values


Selling your veterinary practice will probably be the biggest transaction you will ever undertake, so it is vital to get a feel of its value and an understanding of how you will progress the sale before moving forward.


Who are the potential buyers and what are they looking for?

Potential Buyers-

  1. Corporate buyers
  2. Private equity group buyers
  3. Privately owner practices
  4. Individual buyers, Vets, and nurses
Their needs and how much they will pay can be very different.




Factors involved in determining a practices value.

The 5 Key Drivers determining a practice Value

  • While each vet practice is unique, a number of common factors contribute to the practice’s value:
  • 1. Practice size. Larger practices tend to be more valuable than smaller 1-2 vet practices
  • 2. Location. A good practice location usually commands higher valuations.
  • 3. Specialty area. Small animal veterinary clinics are generally more marketable than mixed or purely large animal practices, so small animal vet practice valuations are typically higher.
  • 4. Asset base. Most vet practices sales are asset sales; these include the Goodwill as often the highest value asset, but also quality equipment affects the price/li>
  • 5. Market position. Well-established clinics with above-average client profitability and client retention can create higher levels of goodwill/li>

Qualitative Factors

  • Quality and accuracy of the sales information memorandum
  • Practice location and demographics (income/pet ownership, attractive to potential staff)
  • Management systems and staff quality and stability
  • Level of competition
  • Type and size of practice, Small animal practices are still the preferred option for buyers
  • Secure property occupancy and market rental values.
  • OOH cover
  • Dependency upon retaining owner

Quantitative Factors

  • Historical and projected financial performance
  • Strong financials --Turnover to Profit Ratio - 17.5% ->20%
  • The current maintainable profit
  • Maintainable earnings multiples from previous purchases/sales
  • Income arrived from third party service suppliers. (e.g. laboratory tests)
  • Potential for improved performance

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