Healthcare & Wellness · Industry Report

PE's Hottest Healthcare Play: Why Vet Practices Command Premium Multiples

Australian veterinary practices are experiencing a PE consolidation boom, with multiples reaching 8–14× EBITDA — the highest in healthcare — driven by pet ownership at 73% saturation, workforce scarcity, and exit multiples that attract corporate and financial buyers alike.

Section 01 — Market Overview

Key Points

• Australian vet practices are trading at the highest corporate multiples in healthcare (8–14× EBITDA) due to active PE consolidation; 73% of households now own pets, up from 61% in 2019.
• The market is fundamentally constrained by a severe veterinary workforce shortage (now in its eighth year), which creates a structural supply-side moat for practitioners willing to invest in team and technology.
• Specialist and emergency 24-hour services command premium multiples (12–14× EBITDA) vs. general practice (4–7×); this tier stratification is accelerating deal velocity and consolidator interest.
• Pet insurance uptake remains below 25%, meaning the industry has a large untapped revenue lever that new operators can deploy without changing the core business model.

Market Size and Growth

The Australian veterinary services market reached AUD $5.7 billion in 2026, growing at a CAGR of 4.0% over the 2020–2025 period (IBISWorld AU, 2026). The market encompasses approximately 3,793 veterinary practice businesses, growing at a more modest 2.1% CAGR during the same period. This divergence — revenue growing faster than business count — signals that existing practices are expanding revenue per business and consolidators are aggregating smaller operators into larger platforms.

Industry Sub-Segments

What's Driving Growth Right Now

Pet Ownership Structural Growth — (Animal Medicines Australia, 2025): Pet ownership in Australian households has risen to 73% as of March 2025, from 61% in 2019 — representing 31.6 million pets across 7.7 million households. For buyers, this means no market headwind on demand; the tailwind is at your back as long as you capture market share from consolidation.

Humanisation of Pet Care and Spending — (Animal Medicines Australia, 2025): Australian pet owners spend AUD $21.3 billion annually on their pets, with AUD $1.9 billion flowing directly to veterinary services. This spending reflects a cultural shift toward pets as family members, justifying premium pricing for preventative and specialist care. Buyers should expect pricing power above inflation.

Pet Insurance Uptake and Consult Frequency — (PetSure, 2025; AVA, 2025): Pet insurance penetration remains below 25% despite growing awareness, but insured pets visit vets significantly more frequently and undergo more diagnostic testing (blood tests up 14% YoY). This is a massive untapped revenue opportunity for practices that invest in client education and insurance billing workflows.

Specialist and Emergency Care Demand — (IBISWorld AU, 2026; Business News Australia, 2023): Demand for specialist and emergency veterinary care is outpacing general practice growth. Owners are willing to travel and pay premium fees for oncology, cardiology, and orthopaedic services. This segment supports 12–14× EBITDA multiples vs. 4–7× for general practice, attracting PE interest.

Workforce Scarcity Creating Pricing Power — (AVA Workforce Survey 2023/24; Animal Emergency Australia, 2024): The industry is in its eighth consecutive year of veterinary workforce shortage, with 36.8% of practices taking over 12 months to fill vacancies (43% in regional areas). This supply constraint enables wage pass-through and reduces competitive intensity — owners can raise prices to fund staff salaries without losing market share.

PE Consolidation and Exit Multiple Inflation — (Business News Australia, 2023; EQT / VetPartners, 2023): Swedish PE firm EQT acquired VetPartners (267 practices) in 2023, and AustralianSuper/HOOPP acquired 45% of Greencross (400+ practices) in 2022. These mega-deals have set precedent for 8–14× EBITDA multiples, creating a seller-favourable exit market and attracting financial sponsors into the space.