Straight answers about selling a veterinary practice.

An add-back is an expense currently running through the practice that will not continue under a new owner, and adding it back raises the earnings a buyer is pricing. The common ones are owner compensation above market, personal expenses, one-time or non-recurring costs, and owner-specific benefits.

A veterinary hospital's value is its adjusted earnings multiplied by a market factor. The adjusted earnings come from EBITDA with legitimate add-backs applied and owner compensation recast to replacement cost. The multiple depends most on doctor count, then on the type of buyer, the practice's growth trend, and its location.

The buyer pool for veterinary practices is now dominated by consolidator groups, most backed by private equity, alongside independent veterinarians, regional multi-site owners, and joint-venture partners. The important distinction between them is not size but hold intent — whether they intend to own the practice indefinitely or to sell it again within a defined period.

Representations and warranties are the seller's factual statements about the practice — financials, licenses, compliance, employees, contracts, litigation, tax — that the buyer is relying on. If one proves untrue after closing, the buyer can generally recover against you, usually from an escrow or indemnity holdback.

Before going to market: get your financial records reconciled, understand your doctor production, and know what you need the sale to deliver. Avoid responding directly to an unsolicited buyer approach, making abrupt changes to staffing or pricing, and telling your team before there is a plan for how.

The veterinary acquisition market in 2026 is more selective than it was at its peak. Buyers are underwriting more carefully, doctor staffing has become the central diligence question, and deal structures increasingly hold part of the price back in earnouts tied to post-closing performance.