For more than a decade, the veterinary industry has enjoyed a reputation as “recession‑proof,” consistently growing even when other sectors slowed. But as we close the book on 2025 and step into 2026, a question many of us are asking is:
Did 2025 finally show that veterinary medicine isn’t immune to broader economic pressures?
Let’s take a closer look at what the data suggested, what the market revealed, and what practice owners should do now to prepare for the year ahead.
Vetsource, which tracks veterinary hospital metrics nationwide, released its final 2025 report showing:
A decline in visits paired with rising revenue offers both reassurance and caution. Increased revenue often signals strong client spending or improved pricing structures, but declining visits hint at shifting behavior—economic or otherwise.
While we won’t have the full picture until more data becomes available, we can draw valuable insights from what we saw on the ground throughout the year.
If 2024 felt uncertain, 2025 delivered signs of stabilization and mild improvement in private practice sales. The market still strongly favors buyers—we are still in the silver rush where supply is greater than demand.
A few factors continue to impact the market this year:
Rates dropped from the 6% range into the low 5s, opening the door wider for associates considering ownership. More accessible lending almost always increases market activity—and we saw exactly that.
One of the most interesting developments was the re‑entry of former practice owners who sold 3–5 years ago. With market conditions improving and valuations stabilizing, many felt it was the right time to return.
Urban and suburban practices continue to move quickly. Rural and non‑urban hospitals? They often take long periods to sell. Buyer focus on geography remains one of the biggest headwinds for 2026.
Bottom Line:
Heading into the new year, the private market has a small but meaningful tailwind—but sellers must be realistic, strategic, and well‑prepared.
2025 was a robust year for multi‑doctor practice sales, with multiples climbing into the teens. However, with higher valuations came much stricter scrutiny.
Gone are the days of a group just buying a multi-doctor hospital to add hospitals to their network. Rightfully so, the buyers are asking the correct questions:
Partnership alignment matters more than ever.
Revenue alone isn’t enough—buyers want to see stable client traffic, as well.
Factors such as location and building condition are important considerations when evaluating whether a new associate would want to work in the practice.
Despite this scrutiny, the corporate market remains strong—but, based on the multiples, it is likely we are at a peak. Sellers waiting until “the perfect time” may find that the perfect time is right now.
Thinking about selling? Thinking you might sell? Or, simply wanting to strengthen the business?
Here’s where to start:
Work with a veterinary-specific broker who can help explain the marketability of your practice. They should also be able to provide an accurate valuation of the practice.
Ultimately, the market—not the owner—determines what makes a practice “desirable.” An experienced broker who understands the market can help you implement a plan to make your practice more marketable for buyers.
As with the clinical world, there’s lots of misleading information out there when it comes to market conditions and practice transitions. Just as you caution your clients against “Dr. Google” diagnoses, a trusted advisor will do the same and provide objective clarity.
In 2025, Simmons & Associates was entrusted with the appraisal or sale of more than 250 animal hospitals. As we approach our 50th anniversary, we remain committed to providing market‑leading expertise to help veterinarians maximize the value of a lifetime of work.
Whether your goal is to sell soon, prepare for the future, or simply better understand your options, now is the time to take stock and plan strategically.
Join Simmons & Associates’ Sean Coyle Tuesday, February 24, at 7 p.m. EST for a deeper dive into “The State of the Market: What Every Practice Owner (and Buyer) Needs to Know Now” as part of our quarterly An Hour with the Experts webinar.
