Veterinary practices
How much is my veterinary practice worth?
Your veterinary practice is worth the earnings it can sustain once every veterinarian, you included, is paid at market rates for the clinical work they do, capitalised at a rate that reflects the risk of those earnings continuing under a new owner. Because these practices are equipment intensive, earnings are often better measured after depreciation than before it.
No multiples published. The reasoning is, in full.
What the answer depends on
The three things that move the number most
Veterinary revenue is paid by the animal's owner, with no Medicare rebate, no PBS subsidy and no plan behind it.
How much of the caseload the principal carries, and who could take it
Veterinarians are the constraint on earnings, so the analysis tests revenue by veterinarian, pay against market and what happens if one leaves. Where the principal is the main producer, replacing that output at a market salary is costed before any earnings are capitalised. Recruitment is the hard part. Jobs and Skills Australia reported in December 2024 that the average time to fill a veterinarian vacancy had risen from eight weeks in 2014 to 25 weeks in 2023 on industry data. The Australian Veterinary Association's 2023/24 Workforce Survey found 36.8 per cent of vacancies took 12 months or longer to fill, and that in regional areas 44 per cent remained vacant for extended periods.
Whether the fee base converts to earnings, given who pays it
Most invoices are settled out of pocket, so a fee increase does not automatically become earnings. Animal Medicines Australia's Pets in Australia 2025 survey found that 76 per cent of dog owners and 86 per cent of cat owners have no pet insurance, that around one in six cat and dog owners had deferred check-ups or vaccinations or cut medication, and that 12 per cent had needed financial assistance to pay for veterinary care. A fee schedule is therefore tested against visit volumes, average transaction value and visits per active client rather than assumed to stick. The practice also carries its own credit exposure, so the debtors ledger is examined directly.
What the premises approvals and licences require of a buyer
Veterinary registration sits with a board in each state and territory, and premises rules differ enough to change who can buy the practice and whether its approval to trade survives the sale. New South Wales requires a veterinary hospital licence under the Veterinary Practice Act 2003 (NSW) to perform major surgery or to advertise premises as an animal or veterinary hospital, held by a registered practitioner or a corporation practitioners control. Queensland turns on premises approval rather than ownership, Victoria has neither scheme, and South Australia and Western Australia register the premises themselves, with registration under the Veterinary Practice Act 2021 (WA) in the applicant's name, so a buyer applies rather than inheriting yours.
Higher or lower
What would move your number up, and what would move it down
Pushes the number up
- A caseload shared across several veterinarians, with associates who intend to stay.
- Clients who book the practice rather than a named veterinarian, with steady new clients.
- A current client database with active recall and preventative health programs.
- Equipment recently replaced, with imaging and medicines licensing current.
- A lease with unexpired term and options at premises that hold the relevant approvals.
Pushes the number down
- The principal producing most of the revenue, in a catchment where recruitment is difficult.
- Clients attached to one veterinarian by name.
- Radiography, anaesthetic or surgical equipment nearing the end of its useful life.
- A rising debtors ledger, or fee increases that have not translated into revenue.
- Premises approvals, medicines authorities or radiation licences lapsed or left unaddressed.
The evidence
What sets the number, in practice
The analysis works from revenue by veterinarian, average transaction value, visits per active client, the split between consultations, surgery, diagnostics and retail, the debtors ledger, the asset register, the lease, the premises approvals and normalised financial statements.
Because the practice is equipment intensive, the depreciation in the accounts is checked against the real replacement cycle rather than accepted, and a sustaining capital allowance is deducted where the two differ. The goodwill question is then the usual one, sharply put: personal goodwill follows the individual veterinarian and generally cannot be sold, while transferable goodwill stays with the practice through its location, brand, client database, nursing team and recall programs. It is the second kind that is bought.
Where the line is
Why there is no multiple on this page
A capitalisation multiple is the inverse of the return a buyer requires for the risk they are accepting, and in this sector that risk is dominated by one question a published figure cannot see: whether the principal's clinical output can be replaced in that catchment, and how long it would take.
The same reported earnings mean different things on either side of that question. A practice with associates in place and clients attached to the business is a different proposition from one with the same profit produced almost entirely by an owner who is leaving, in a region where vacancies commonly remain open for extended periods. One multiple applied to both would be right for neither.
What it costs to find out
A fixed fee, published before you ask for it
An indicative assessment is a flat $950 plus GST, credited against a valuation report if you proceed within 3 months. A full valuation report is a fixed fee set by the annual revenue of the business being valued, $1,500 plus GST at the smallest band and $9,450 plus GST at the largest, and an expert report for a family law matter or a dispute is priced separately on the same bands. Every fee is agreed in writing before work starts and never depends on the conclusion reached.
Indicative assessment
$950
One fee whatever the size of the business, credited against a valuation report if you proceed within 3 months.
Valuation report
- Up to $1 million
- $1,500
- $1 million to $3 million
- $2,200
- $3 million to $10 million
- $4,950
- Above $10 million
- $9,450
Expert report
- Up to $1 million
- $2,700
- $1 million to $3 million
- $3,950
- $3 million to $10 million
- $8,900
- Above $10 million
- $16,950
Every fee above is fixed and quoted plus GST, and is agreed in writing before any work starts. Bands are set on annual revenue. A business sitting exactly on a boundary pays the lower fee. See the full fee schedule
Go deeper
Read the full analysis
- Sector pageVeterinary practice valuationsThe complete treatment: methods, earnings adjustments, sector risks, value drivers, the information required and detailed FAQs.Read
- MethodologyHealthcare business valuation methodsHow maintainable earnings, capitalisation, discounted cash flow, net assets and market evidence each work, and when each applies.Read
FAQs
Veterinary practice valuation questions
How much is my veterinary practice worth?
It is worth the maintainable earnings the practice can sustain once every veterinarian, including you, is paid at market rates for their clinical work, capitalised at a rate reflecting the risk of those earnings continuing under a new owner. That figure is usually assessed after depreciation, or with a separate sustaining capital allowance, because equipment must be replaced on a cycle the accounts do not track.
How do I value my vet clinic for a partner buy-in?
The same earnings analysis applies, but two questions have to be settled before a number means anything. The first is what is being acquired: a share in the operating entity, an interest in the practice assets, or both, and whether the premises sit inside or outside that. The second is whether the interest carries control.
Does pet insurance affect what my practice is worth?
Indirectly, through the reliability of the fee base rather than the fees themselves. Animal Medicines Australia's Pets in Australia 2025 survey found that 76 per cent of dog owners and 86 per cent of cat owners have no pet insurance, and that around one in six had deferred check-ups or vaccinations or cut medication. Where clients pay out of pocket, a fee schedule is tested rather than assumed to hold.
Do my veterinary premises approvals transfer to a buyer?
That depends on the state and on how the sale is structured. New South Wales requires a veterinary hospital licence, Queensland approves the premises themselves, Victoria has no premises licence, and South Australia and Western Australia register the premises with the registration in the applicant's name, so a buyer applies rather than inheriting yours. Radiation and scheduled medicines authorities sit under separate state regimes again.
How much does it cost to find out what my practice is worth?
An indicative assessment is a flat $950 plus GST, credited against a valuation report if you proceed within 3 months. A full valuation report is a fixed fee set by the annual revenue of the business being valued, $1,500 plus GST at the smallest band and $9,450 plus GST at the largest, and an expert report for a family law matter or a dispute is priced separately on the same bands. Every fee is agreed in writing before work starts and never depends on the conclusion reached. The full schedule, including the additional entity fee for groups that trade through more than one entity, is published on the pricing page.
Make your next decision with a clear understanding of value.
Tell us about your healthcare business and the purpose of the valuation. We will confirm the appropriate scope, information requirements, timeframe and the fee band that applies.