Veterinary M&A industry trends

The veterinary sector has attracted substantial acquirer interest for several decades as large players have capitalized on the sector’s clinic fragmentation. The thesis is anchored around consolidating competitors to establish regional dominance, bolster scale, and enhance service offerings. M&A activity has ramped up dramatically in the past few years and volumes have been pushed to new heights for private equity and strategic buyers for two compelling reasons:

• Buying a cash business like a companion animal practice is considered a safe, lucrative and generally recession proof investment – particularly to gain profit and diversity portfolios.
• Veterinary data is powerful currency to increase and influence pet parent/consumer engagement. Both will continue to drive valuations and numerous acquisitions will be centered around this thesis.