Just under a third of vets considering selling their practice in the next year, survey finds

Practice owners are putting in the longest hours in an effort to retain staff by limiting the requirement for employees to be available for on-call duty.

Just under a third of veterinary practice owners are considering selling their practice in the next 12 months, according to new research from advisory firm HLB Ireland.

A survey conducted found that while job satisfaction levels across the profession are high, work/life balance is a significant challenge for both practice owners and their teams, HLB Ireland said.

Since the firm first began surveying veterinary practices in 2019, the pace of consolidation in the sector has accelerated, it said, driven by staff shortages, higher valuations, rising costs, and the age profile of practice owners.

Commenting on the findings, HLB Ireland’s managing partner Mark Butler said that up to now, corporates and larger practices have been the main buyers of veterinary practices.

"While we expect this trend to continue in 2023, difficulties raising finance and the depth of consolidation which has taken place to date will likely result in fewer deals," Mr Butler said. 

"That said, just under a third of practice owners who participated in our research are considering selling up in the next 12 months, so there will be opportunities for buyers with sufficient resources on their balance sheet to fund acquisitions."

Mr Butler said that before entering into negotiations with a potential buyer, practice owners should always obtain independent advice from professionals with experience of the veterinary sector. 

He added that it is also advisable to seek advice on how best to time and structure any proposed deal.

Proposed second veterinary college 

The HLB Ireland 2023 Veterinary Practice Survey also reveals strong support for the proposed new veterinary college, with 82% of vets who participated in the research favouring the proposal.

When asked for their views on the proposed second veterinary college, most (67%) also believe that the current structure of educating vets in Ireland can be improved, with many suggesting the need for a stronger focus on practical experience and business skills, according to the report.

Other key findings include that 73% of survey respondents work more than 40 hours a week, and almost a quarter work more than 60 hours a week. 

Practice owners are putting in the longest hours in an effort to retain staff by limiting the requirement for employees to be available for on-call duty, the report says.

Consistent with findings in previous years, better work-life balance is the top aspiration for both practice owners and their employees.

Overall, 64% of this year’s respondents want to achieve a better work/life balance.

Cost of living

Higher wages and rising costs are forcing veterinary practices to put up their prices, according to the new report. 

In the last 12 months, 73% of survey respondents increased their consultation fees. 

The rising cost of living is also having an impact on pet owners, with just under half (48%) of survey respondents saying this is causing some pet owners to cut back on veterinary care.

Meanwhile, 59% of survey respondents said that their practice plans to hire additional employees in the next 12 months. 

More than half of respondents now work in practices with 10 or more staff, up from 38% last year.