This is a subscriber-only article
While the emergence of corporate groups running veterinary practices is new in the Republic of Ireland, it is now commonplace in the UK and the Netherlands.
Investment groups have been snapping up practices, usually smaller ones at first, in Britain for a number of years but recently made the move to Northern Ireland (NI).
It is estimated that approximately one-third of practices are owned by venture capital-led groups and this could rise to half of all practices by the end of 2018.
A group called Independent Vet Care (IVC) acquired a Co Down practice recently.
The group is backed by a Scandinavian investment fund. It also owns some 300 practices in the UK. Five of these are in Northern Ireland.
Acquisitions
As reported by the Irish Farmers Journal in 2017, IVC made 40 acquisitions in 2016 alone. The group has a turnover of €151.6m (£134.7m), up from €95.5m (£84.9m) in the previous year.
The other main company acquiring practices is CVS Group Ltd.
It is the largest provider of veterinary services in the UK, with 430 surgeries. It has six practices in Northern Ireland.
These corporates usually have veterinary professionals on their boards and use venture capital to fund acquisitions.
Earnings
Veterinary practices are usually offered in the range of six to eight times earnings before interest, taxes and amortisation (EBITA) of the vet.
So, for example, if a single vet practice generates €150,000 per year and the vet takes a salary of €100,000, then the group would pay six to eight times of €50,000.
Radical vet changes on the way
SHARING OPTIONS: