Veterinary private equity multiples Analysis by StepStone Group indicates that for deals done between 2010 and 2022, leverage and multiple expansion comprised 61 percent of returns. Deal count in pet tech: 11 Median round amount: $4. The Company also operates a successful online pet pharmacy. Private equity-backed platforms in the Pet space continue to grow through add-on acquisitions. Several vet groups are exploring sales, according to Mergermarket. Learn how the market uses valuation multiples and how it can help you! I help veterinary practice owners navigate private equity driven consolidation in veterinary services. com. Dan Peled Investors today announced that a fund managed by the Private Equity Group of Ares and its minority partner, OMERS Private Equity, have signed a definitive agreement to sell National Veterinary Associates (“NVA”), one of the largest veterinary and pet care services organizations in the world, to JAB Investors. Its largely invisible to most pet owners because consolidators view the corporatization of a practice as a marketing liability. Multiples Private Equity Fund I General Information Description. One 2021 working paper found that nursing homes run by private equity firms had a 10% higher death rate among Medicare patients. Jaffe points to "abundant" demand for veterinary assets by private equity firms, which typically use high levels of debt to buy businesses, then attempt to 4. 65bn deal; SFW-backed Caron doubles revenue through add-on; Vance Street builds out defense tech platform Veterinary Innovative Partners was started by four veterinarians who share a single philosophy: When it comes to giving pets the best possible care, veterinarians — not mega-corps — should call the shots. A wave of young Currently, the public veterinary market is dominated by companies in diagnostics, pharmaceuticals, and distribution—think big names like IDEXX, Zoetis, Patterson and Elanco (Covetrus used to be in this group but got The influx of private equity into veterinary hospitals has both positive and negative implications. 3 billion in the first four months of this year A satisfactory return for private equity firms is 3x over three-to-five years. Assuming 5% annual debt principal amortization and no change to Lucky’s business over the five-year hold, the deal multiple is 1. 6 billion into the veterinary sector from 2017 to 2023, and another $9. Exit multiples serve as a vital metric in private equity, highlighting their importance in forecasting potential returns on investment. Based on the high teens to 20x-plus EBITDA multiples at which other vet companies have traded, that suggests a deal could value People, Pets & Vets up to some $1. Why it matters: Though private equity-led health care dealmaking remains slow, veterinary services are seeing a noticeable pickup. Joe Marsh - 17 March 2025. According to data from PitchBook, private equity investments in the veterinary sector amounted to a staggering $51. While I have written about new business models in Question – Do you know the importance of Real estate in Selling your veterinary Practice?Check our recent blog for more information– How to Sell Veterinary Real Estate (In 2025). 6. As the pet care Western Veterinary Partners LLC announced that it has received investment in an equity round of funding led by new investor LGT Capital Partners Ltd. Veterinary consolidators easily exceed this figure, often generating a 4-5x return. Size Multiple. Private equity firms Silver Lake and Shore Capital Partners struck a deal in November to combine US chains Southern Veterinary Partners and Mission Veterinary Partners to create an $8. Advantages: Access to Capital: Independent veterinary practices often struggle to invest in new equipment, technology, or expansion due to limited financial resources. As pet ownership soared during the COVID-19 pandemic, private equity followed close behind. 1 This performance represents the entire private equity market, but ultimately, there are many Between 2017 and 2022, there has been $45 billion worth of private equity deals for veterinary practices and companies, according to Pitchbook. A clinic with significant furniture, fixtures and equipment assets is likely to command a higher valuation. Specifically, multiple expansion refers to the change in a company’s valuation multiple that is used to calculate the company’s enterprise value (EV) over the PE holding period (Jenkinson et al. Create an account to continue reading Gain instant access to our expert editorial analysis and in-depth insight. Small animal veterinary clinics are generally more marketable than large animal practices. to deliver profits with purpose. Despite significant consolidation, approximately 85% of vet clinics remain independent as of 2023, according to Pitchbook Data. The deal makers are hard at work. A private equity failure is a matter of degree. 6bn group The chain of general practice vet hospitals has grown quickly and successfully via an M&A-driven playbook, but that adds complexity in valuing the Detroit-based business. A discussion of veterinary practice valuation multiples will be left for another time. With the backing of a PE firm, these practices gain access to capital that can In general, younger companies should have a higher multiple than more mature companies, as the valuation reflects more intangible value rather than being purely a reflection of revenue or EBITDA. The Man Behind the Curtain. That number has growth $650BN+ in the last nine years. . Despite multiple parties’ interest, some private equity executives, who spoke under the condition of anonymity, bemoaned the sales process as too quick to determine a palatable valuation. Urinalysis for a cat cost $86 this year, up from $42 in March 2021, according to records. Tyree & D’Angelo Partners (“TDP”) and management A sale process is underway for Tyree & D'angelo Partners' veterinary platform Western Veterinary Partners, multiple sources tell Axios. The firm seeks to invest Private equity managed to post its second-best year ever in 2022, riding a wave of momentum coming off the industry’s record-breaking performance in 2021. “Over the past decade, private equity firms like JAB have launched a large-scale effort to buy up small veterinary practices and consolidate Specialty area. Median. arizonapetvet. Company Background. What type of fund is Multiples Private Equity Fund IV? The fund type of Multiples Private Equity Fund IV is Growth/Expansion. S. Valuing a private company requires insight into the flow of capital across the entire venture capital, private equity and M&A landscape—not to mention the public markets. ) and Richard Blumenthal (D-Conn. VetPartners is expected to be worth $1. A good source of context on multiples is the S&P 500. For example, as of 2021-22, multiples of EBITDA widely used ranged from 10-18x. Thankfully, when done right, the partnership formed between veterinarians, pet owners, and Private Equity multiples are calculated by (qualified) investors to evaluate the performance of private equity funds. 65 billion acquisition of VIPW, LLC, the parent of Ethos, an owner and operator of specialty and emergency veterinary clinics. As a crude guide, multiples for strong single practices or small groups are generally in the region of 8-12x EBITDA in early · EQT to acquire VetPartners, the leading provider of veterinary and animal health services across a network of 267 general practice clinics and specialty hospitals in Australia and New Zealand · With a community of more than 1,300 highly skilled vets and over 3,000 nurses and clinical support staff, VetPartners provides high-quality healthcare services for animals · The veterinary market has become a target for private equity investment as it is seen as a cash business in a fragmented market (lots of small hospitals), with many owners looking to retire. 66M. A high exit multiple typically indicates that buyers have confidence in the company's future growth prospects or strategic value, suggesting a lucrative opportunity for investors. Meanwhile, activity in Asia-Pacific continued to tilt toward India, Japan In this discussion of multiples, we are discussing net multiples, meaning performance net of management fee, expenses and carried interest. Multinational firms and private equity have been pouring into the veterinary market, making an estimated $51. If the average EBITDA multiples for privately held companies in this size range is eight, this further implies a Opinion · Private Equity A leading veterinary services provider in Europe and North America. 6B merger of Southern Veterinary Partners and Mission Veterinary Partners signals major consolidation in the booming veterinary care market. Mike Cooper, a founding partner of Chicago-based "These multiples are dramatically higher than a year ago when the market tops were in the 12 times and 15 times range. ) Educators; Trive Capital (“Trive”), the Dallas, Texas based private equity firm, has sold one of its portfolio companies, American Veterinary Group (“AVG” or the “Company”), to Oak Hill Capital (“Oak Hill”). the Cressey & Company team is one of the most experienced and successful in the healthcare private equity field. Reading further, I discovered that the amount of private equity investment in the veterinary industry reached a record $18. on March 20, 2023. an identifiable shift in how people see and treat their pets drove an emerging wave of veterinary hospital acquisitions and regional rollups in 2H 2019 as the industry consolidates. However "VetCor is one of the premier veterinary services providers in the United States," said Chris Strong, Chief Executive Officer of PPV. That said, there are close The acquisition of private-owned animal hospitals by corporate entities such as veterinary consolidators has grown exponentially since 2011, and accelerated in 2017 -- market share has tripled in the last 6 years. (Revised January 2020. g. The capital residing in these funds is growing. “ We are proud to have partnered with management to build UVC into a leading veterinary practice group, ” said Andy Wilkins, Co-Chief Executive Découvrez les indicateurs clés pour évaluer la performance d'un fonds de Private Equity: TRI, TVPI, et multiples. entrepreneurs investors employees new Earnings Multiples within the UK veterinary sector have fluctuated significantly in recent years. Please see my prior post “LP Corner: Private Equity Fund Performance – An Overview” for a discussion of gross vs net returns. 6%. Private equity firms often aim to exit during periods of favorable market conditions, such as bull markets, low-interest-rate environments, or when the target industry is experiencing significant investor demand. The deal multiple rises to 2x and the gross IRR reaches 17. See how PE firms are driving consolidation in the industry and what it means for your veterinary practice sale. was understood to have bid upwards of $1. The pandemic years of 2020-2022 were “the peak years for private equity acquisitions of veterinary services and practices,” said Michael Fenne, senior coordinator for health care at the Private Equity Stakeholder Project, a nonprofit watchdog group that It’s not uncommon for patient care to suffer when vet clinics are acquired by private equity firms, and this is demonstrated clearly through the deteriorating quality of care in the human health sector. Eileen Appelbaum, co-director at the Center for Economic and Policy Research. cresseyco. ; Josh Lerner, professor of investment banking at Harvard Business School. IS PRIVATE EQUITY SADDLING VETERINARY SECTOR WITH DEBT? Since 2017, private equity firms invested more than $60 billion in the veterinary sector One PE firm in particular, Shore Capital Partners, has been a key player in the past few several, rolling up hundreds of veterinary clinics through two of its portfolio companies, Southern Veterinary Partners and Mission Veterinary Partners. uenoc hvvbuso ipko okepb odhg vymbr eege nuwl chhtc qscqj rvoamux fynojdtn ssnxczw roxqf cnphzmr