CONSOLIDATOR OWNERSHIP OF GENERAL PRACTICES IS RAPIDLY ACCELERATING:
Based on current trends, corporate consolidators (many are owned and or controlled by private equity firms) could potentially own and operate up to 60% of all general veterinary practices within the next decade, representing approximately 75% (consolidators prefer to purchase larger practices which employ many doctors) of the total general practice market.
- 2022: 25-30%***
- 2021: 25%**
- 2020: 20%*
- The number of consolidator purchases overtook independent transactions for the first time.*
- 2019: 16%*
- 2017: 11%*
- 2015: 9%*
- 2013: 8%*
- 2011: 6%*
- 1986: 0%*
- Veterinary Centers of America (VCA) was established in 1986. The company acquired its first veterinary hospital in 1987 and started the consolidation of veterinary practices.
CONSOLIDATOR OWNERSHIP OF SPECIALTY & EMERGENCY ANIMAL HOSPITALS:
- Corporate consolidators own and operate approximately 75% of all specialty and emergency pet hospitals.**
*2021 Brakke Industry Overview
**2022 Brakke Industry Overview
***Veterinary Practice Market Consolidation – Veterinary Advantage (June 2022)
FTC Intervenes in Private Equity Firm’s Acquisition of Veterinary Hospitals, Citing Antitrust Concerns (6.18.22)
- “Private equity firms increasingly engage in roll up strategies that allow them to accrue market power off the Commission’s radar,” said Holly Vedova, Director of the Bureau of Competition. “The prior notice and approval provisions will ensure the Commission has full visibility into future consolidation and the ability to address it.”
- THE STATE OF VETERINARY CORPORATIZATION:
- FLIPPING ANIMAL HOSPITALS FOR BIG PROFITS:
- Hospital groups can sell for hundreds of millions of dollars (often more than $1 billion) to another industry consolidator.
- UNITED KINGDOM is one of the most concentrated veterinary markets in the world where practices are owned and operated by a small number of corporate groups.
- In 2013, independent veterinary practices accounted for 89% of the veterinary care market in the UK. By 2021, its share has fallen to 45%.
- “The Competition and Markets Authority (CMA) continues to receive complaints about higher prices or lower quality services as a result of too many vets’ practices in the same area being under the control of a single company.”