Pet Care & Services: M&A Industry Report

People love their pets. No one questions that simple fact.

People spend money on their pets, whether covering the basics of food and care or the extravagances of dog spa resorts and custom stitched leather collars and leashes. That spending fuels an industry that passed $150 billion in the US in 2024 (American Pet Products Association). With 94 million households owning at least one pet, and 77% of pet owners reporting that their ownership is unaffected by the current economy, the industry reflects two qualities very attractive to investors: growth and resilience. (APPA)

In this (occasional) report, Pets and the Businesses that Love Them, we explore some of the active areas for M&A, investment activity, and entrepreneurship in the pet industry.

Note that the much higher number of transactions reflected in this list vs. p. 7 indicates CapitalIQ did not capture smaller practice acquisitions in its data.

• Investors: PEGs see a fragmented market of small entities with relatively weak infrastructure, supported by consumer demand that is quite resilient. They see opportunities to drive value through improved and centralized administrative and technology infrastructure. The business is also typically cash-based and doesn’t rely on 3rd party payers.
• Practice owners: Practices can be difficult to sell or otherwise provide an exit for retiring veterinarians. Traditionally younger associates would buy in, but many of them find it more economical to simply set up on their own and attract the client base. Notably, PEGs tend to offer as much as twice what owners could receive from the old model (according to industry broker groups) and are skilled at executing deals quickly.
  • Even for vets who want a partnership model and to stay on, the promise of business management support is often welcome. Additional investment in and access to newer, more sophisticated veterinary equipment is also of significant interest.
• Job seekers: Newly minted vets see benefits not traditionally part of the “pay your dues” model. Think signing bonuses, retirement plans, insurance, paid vacations and professional development path.

So…What’s not to like?

Some practitioners have not appreciated the “corporatization” of veterinary medicine (not surprising). On a less personal note, research has shown that prices for the consumer have risen, not fallen, over the last decade and the phrases “anti-competitive” and “monopoly” have snuck into the conversation. In 2025 the cost of veterinary services rose 7.1%, compared to the CPI of 2.9% overall (BLS data). And the FTC has intervened on more than one occasion to require an acquirer to divest certain assets before approving a deal, citing anti-competitive trends in certain markets.