The Texas market for vet and animal health practices is more active than ever. For practice owners, this presents a significant opportunity, but it also brings new questions. This guide gives you an overview of the current landscape, from valuation to post-sale life. We have found that understanding your options is the first step toward a successful transition, whether you plan to sell this year or in the next five years.
Market Overview
The market for veterinary practices in Texas is strong. We are seeing significant interest from a wide range of buyers, which creates a competitive environment for sellers. While national data suggests average sale prices around $1.5M, the value of a Texas practice can vary widely based on its specific characteristics. The key is to understand what buyers in our state are looking for right now.
Strong Investor Appetite
Corporate groups and private equity firms are actively acquiring practices in Texas. They are drawn to the state’s growing population and resilient economy. These buyers are often looking for well-run practices with solid financial performance and potential for growth. They bring capital and operational resources, offering a different path than a traditional sale to another veterinarian.
Location is Everything
In a state as large as Texas, geography matters. Practices in major metropolitan areas like Dallas-Fort Worth, Houston, Austin, and San Antonio often see higher demand. However, established practices in growing suburban and rural communities are also attractive targets. A practice with a loyal client base and a strong local reputation holds significant value, regardless of its specific address.
Key Considerations
Beyond market conditions, a sale is deeply personal. Your goals for your legacy, your staff, and your own future are central to the process. Many owners, attached to their life’s work, mistakenly over-value their practice, which can scare away serious buyers. It is also important to consider the financial structure of the deal. The allocation of the price between tangible assets and goodwill has direct tax consequences. How you structure the transaction can significantly change your final, after-tax proceeds. Planning for this early is not just smart. It is necessary.
Market Activity
The buzz about the Texas market is real. We see deals happening with different kinds of buyers, each with unique goals and deal structures. Understanding who is buying helps you position your practice effectively.
Today s active buyers include:
- Large National Corporations: These established players are constantly looking to expand their footprint in key states like Texas. They seek profitable, well-managed practices to integrate into their existing network.
- Private Equity-Backed Groups: These buyers are often building regional or national platforms. They look for strong “platform” practices to build upon or smaller “tack-on” acquisitions to grow their existing portfolio.
- Independent Veterinarians: The traditional buyer is still a factor. These are often younger vets or local practice owners looking to expand their own operations.
Sale Process
Selling your practice follows a structured path, but it is one with critical checkpoints. The journey typically begins with preparation, where you organize your financial and operational documents. Next comes a thorough valuation to establish a credible asking price. With a price set, we would confidentially market the practice to a curated list of qualified buyers. Once you accept an offer, the most intensive phase begins: due diligence. This is where the buyer inspects every aspect of your business. Many deals fall apart here due to surprises or poor preparation. Successfully navigating due diligence leads to finalizing legal documents and, ultimately, closing the sale.
Valuation
What is your practice actually worth? The answer is more than a simple percentage of your annual revenue. Sophisticated buyers value your practice based on its profitability, specifically its Adjusted EBITDA. This is your Earnings Before Interest, Taxes, Depreciation, and Amortization, “adjusted” to add back owner-specific perks or one-time expenses. This normalized profit figure is then multiplied by a number, or “multiple.” The multiple is not a fixed number. It changes based on several factors, and this is where a professionally managed process can create significant value.
| Factor | Lower Multiple | Higher Multiple |
|---|---|---|
| Provider Model | Solo-owner dependent | Associate-driven, multiple providers |
| Size & Scale | Under $500k in EBITDA | Over $1M in EBITDA |
| Growth | Flat or declining revenue | Consistent year-over-year growth |
| Location | Slower-growth area | High-growth metro or suburb |
A professional valuation tells the story behind these numbers, which is what justifies a premium multiple to a buyer.
Post-Sale Considerations
The transaction is not the end of the story. It is the beginning of a new chapter for you, your staff, and your legacy. A successful exit plan considers what happens the day after you close. Will you continue to work in a clinical role? If so, for how long and under what terms? Many modern deals include an “earnout” or an opportunity to “roll over” some of your sale proceeds into equity in the new, larger company. This gives you a second chance at a financial win down the road. Thinking about these possibilities early on is key. Your transition should be designed to match your personal, financial, and professional goals, ensuring the practice you built continues to thrive.
Frequently Asked Questions
What is the current market like for selling a vet and animal health practice in Texas?
The Texas market for vet and animal health practices is very active with strong investor appetite from corporate groups and private equity firms, especially due to Texas’ growing population and resilient economy. Practices in major metro areas and growing communities are in high demand.
Who are the typical buyers for vet practices in Texas?
Buyers include large national corporations looking to expand their network, private equity-backed groups building regional or national platforms, and independent veterinarians, often younger or local vets looking to grow their operations.
How is a vet practice typically valued in Texas?
Valuation is based on Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) adjusted for owner perks and one-time expenses. The EBITDA is then multiplied by a multiple that varies depending on factors like size, growth, provider model, and location.
What should sellers consider in addition to the sale price when selling their vet practice?
Sellers need to consider their legacy, staff, and future plans. They should also think about the financial structure of the deal, especially the allocation between tangible assets and goodwill, as this affects tax outcomes. Planning early for tax strategy is crucial.
What happens after selling the practice – what are the post-sale options?
Post-sale plans can include continuing clinical work for a period under certain terms or participating in an earnout or equity roll-over in the acquiring company. These options offer potential ongoing financial benefits and help ensure a smooth professional and personal transition.