M&A activity in the veterinary service organization sector remains active, though the market is more measured than the frenzied pace of recent years. Large-scale consolidation continues, highlighted by mega-mergers like the $8.6 billion combination of Southern Veterinary Partners and Mission Veterinary Partners, but buyers are approaching opportunities with greater discipline. Deal flow has moderated from the pandemic-era highs, yet multiples remain attractive, particularly for specialty and higher-EBITDA practices, where valuations are still reaching into the low- to mid-teens.

As with dental, investor priorities have sharpened. Proven, repeatable operating models, transparent financial reporting, and a defensible compliance posture are essential. Buyers are increasingly focused on clinics that can show consistent same-store growth, strong EBITDA margins, and evidence of scalable infrastructure. Specialty practices, emergency care, and tech-enabled clinics—such as those integrating diagnostics, telemedicine, or niche treatments—are commanding premiums as investors look for differentiation and defensible market positions.

Deal structures are also evolving. All-cash transactions are less common, with consideration often including seller notes and equity rollovers to align long-term interests. Retention of selling veterinarians has become a priority, as continuity of leadership and client relationships are seen as critical to sustaining value post-transaction. At the same time, regulatory scrutiny of consolidation is growing, adding pressure on buyers to demonstrate not just financial upside but also high standards of care and compliance.

Overall, the VSO M&A market remains robust and attractive, but buyers are choosier and more disciplined. Sellers who can present a clear, data-backed story—anchored by operational excellence, clinical quality, and sustainable growth—will remain well-positioned to capture premium valuations.

---

 

“The veterinary sector is undergoing rapid transformation, driven by digital innovation and evolving care models. These shifts are laying the groundwork for continued consolidation, even as regulatory scrutiny intensifies across global markets.” Virgil Ochoa Dykema Member

 

---

“Veterinary practices—especially those focused on companion animals—are increasingly viewed as resilient, high-margin investments. Their ability to generate consistent cash flow and leverage pet health data for deeper client engagement continues to attract strategic buyers and private equity alike.” Kristin A. Ornstein Dykema Member

---