Veterinary Practice Purchase or Sale During COVID-19

Veterinary Practice Purchase or Sale During COVID-19

Posted on

Veterinary Practice Mergers and Acquisitions (M&A) in the Midst of COVID-19 (Coronavirus)

Keiter advisors shared insights on the different factors driving veterinary practice owners, who were weighing the options of buying or selling a veterinary practice prior to the COVID-19 pandemic, to make a decision now.

“M&A Considerations During COVID-19: Selling or Buying a Veterinary Practice” Excerpt:

A unique set of factors is driving M&A activity in the veterinarian services marketplace during the COVID-19 pandemic.  Many practice owners who were “on the fence” about transacting have now been called to action by the recent COVID-19 pandemic.  The reasons we hear most often include:

  • A potential administration / tax policy change;
  • Mental stress;
  • Competition to recruit new veterinarians & technicians;
  • Current valuation levels at or near record highs (and their sustainability); and
  • The pressures of competing with the consolidators.

Private equity, attracted to the fragmented nature and recession resilience of the industry, have been steadily investing in larger “platform companies” over the last several years and are hungry to consummate acquisitions.  Additionally, industry revenues are withstanding the effects of the COVID-19 pandemic.  According to data from VetSuccess, revenues for the month of August are up nearly 14% year over year, based on data from their practice customers.  We believe industry acquisition activity will remain robust for the foreseeable future as interested sellers seek a large pool of acquisition hungry buyers.  It’s important for sellers to understand the components of what is driving value in this environment.

About the Author

Keiter CPAs is a certified public accounting firm serving the audittax, accounting and consulting needs of businesses and their owners located in Richmond and across Virginia. We focus on serving emerging growth businesses and companies in the financial servicesconstructionreal estatemanufacturingretail & distribution industries and nonprofits. We also provide business valuations and forensic accounting servicesfamily office services, and inbound international services.

More Insights from Keiter CPAs

The information contained within this article is provided for informational purposes only and is current as of the date published. Online readers are advised not to act upon this information without seeking the service of a professional accountant, as this article is not a substitute for obtaining accounting, tax, or financial advice from a professional accountant.


How Can We Help You and Your Business?

Innsbrook Corporate Center
4401 Dominion Boulevard
Glen Allen, Virginia 23060

804.747.0000 or 804.273.6200