Most veterinary practice owners don’t talk about EBITDA until they’re thinking about selling. But once you enter the world of valuations, it becomes the number everyone’s looking at. It tells buyers how profitable your clinic really is after stripping out expenses that don’t reflect day-to-day operations.
So what’s considered a “good” EBITDA for a veterinary clinic? The answer depends on your size, location, and structure — but here’s a general range.
For small to mid-sized practices
If your annual revenue is between $1 million and $2.5 million, a solid EBITDA margin typically falls between 12% and 18%. That means if you’re doing $1.8 million in revenue and have an EBITDA of $270,000, you’re sitting at 15% — which is strong and attractive to buyers.
For larger or well-run practices
If your systems are efficient, your staffing is stable, and your owner dependence is low, you might see EBITDA margins climb into the 20% to 25% range. That’s considered excellent, especially if your books are clean and your financials are predictable.
What buyers are really looking for
Buyers care about more than the number itself. They want consistent EBITDA over two to three years. One big year followed by a drop raises questions. They also look at how you got to that number. If your EBITDA is high because you’re understaffed or doing the work of two vets yourself, that’s not sustainable — and buyers will adjust for that.
Pro Tip – If you looking to focus on maximizing veterinary practice value you need to ensure that your practice has the growth potential ie. room for expanding into other services like telemedicine, day boarding etc.
How to strengthen your EBITDA before selling
If you’re a few years out from selling, here’s what moves the needle:
- Reduce unnecessary or personal expenses that show up in your books
- Stabilize your team to lower turnover and improve efficiency
- Raise fees strategically if your pricing is below market
- Document systems so your clinic runs smoothly even when you’re not involved
- Track your EBITDA quarterly so you can show consistent trends, not just one good year
Final takeaway
A “good” EBITDA for a veterinary clinic is not just about the number. It’s about consistency, clarity, and sustainability. If you’re consistently hitting 15% to 20% EBITDA with clean books and a strong team, you’re already in the zone buyers are looking for.
Let me know if you want to turn this into part of a valuation resource or add it as a cluster blog for your veterinary acquisition content.