Video Recap: How To Increase The Value Of Your Veterinary Practice Before Selling

When veterinary practice owners begin thinking about an eventual sale, many focus almost entirely on revenue. But according to Matt Arena, buyers today are evaluating much more than top-line growth when determining what a practice is worth.

In this episode of 360 Half Seconds, Matt joins Kia Banisadre to discuss the operational, financial, and strategic factors that can significantly influence a veterinary practice valuation. The conversation highlights how owners who prepare early often place themselves in a much stronger position when it comes time to sell.

One of the first areas Matt emphasizes is revenue growth. Practices showing declining revenue often struggle to attract buyers or maintain strong valuations. Ideally, buyers want to see consistent year-over-year growth, with Matt noting that approximately 5% annual revenue growth is often viewed as a minimum benchmark for maximizing value. However, buyers are also looking beyond simple pricing increases. If revenue growth is driven solely by higher fees rather than increased patient visits, buyers may view that growth as artificial and unsustainable.

Profitability also plays a major role. Matt explains that many buyers closely evaluate EBITDA margins, with stronger-performing practices often operating near or above 20% EBITDA as a percentage of revenue. Practices operating at significantly lower margins may face valuation pressure unless improvements are made before going to market. He notes that areas such as pricing strategy, cost management, and doctor compensation structures can all influence profitability. In some cases, practices paying fixed salaries well above market norms may unintentionally reduce margins and create negative valuation adjustments during buyer modeling.

The conversation also highlights several operational areas owners may overlook when preparing for a sale. Online reputation, particularly Google reviews, has become increasingly important, with Matt suggesting that buyers often prefer practices maintaining at least a 4.5-star rating. Clean, consistent accounting records are another major factor, as buyers want financial reporting that is organized, standardized, and easy to evaluate. Matt and Kia also stress the importance of having a strong hospital manager in place, both for operational continuity and for helping facilitate the due diligence process during a transaction.

As the discussion continues, Matt explains that improving practice value is rarely a one-size-fits-all process. Some practices may need to address pricing and margins, while others may need to improve staffing efficiency, patient traffic, or cost controls. That is why 360 Vet Sales encourages owners to obtain valuations well before they are ready to sell. Early valuations can help uncover opportunities to strengthen operations, improve profitability, and potentially increase practice value significantly over time. In some situations, relatively small operational improvements made over several months can substantially increase the eventual sale price.

Ultimately, the biggest takeaway from the conversation is that maximizing practice value requires preparation. Owners who understand how buyers evaluate veterinary practices and who begin addressing operational weaknesses early often create more options for themselves later. Whether a sale is months or years away, becoming “sale ready” long before entering the market can have a meaningful impact on both valuation and deal flexibility.