43% of Irish vet practice owners have no successor - report
A survey of vet practice owners has revealed that 43% have no identified successor, despite steady consolidation and corporate activity in the sector.
That's according to the HLB Vet Practice Report, which is based on feedback from more than 100 veterinary professionals.
The report also found that only 46% of vet practices know the current valuation of their business, and 65% say a corporate has acquired a practice in their local area.
Pattern
HLB Ireland says this pattern mirrors broader succession weaknesses across professional services and family-owned small and medium-sized enterprises (SMEs).
Mark Butler, managing partner of HLB Ireland said: “We’re seeing the same challenges in veterinary practices that we see in many Irish SMEs.
“Businesses are getting bigger and more complex, but the planning behind them hasn’t kept pace.
“The succession gap is not unique to vets, they’re simply one of the clearest indicators of what’s happening nationally.”
Vet practice scaling
The report shows significant scaling within the vet practice sector.
Almost half of all practices (45%) now employ more than 10 staff, while only 21% employ fewer than five.
HLB notes that many business owners are now effectively running SMEs but often without the governance, structures, or exit strategies that typically accompany that level of growth.
Incorporation trends
The report also highlights incorporation trends, with 61% of practices already incorporated and 35% of the remaining group considering it.
However, HLB warns that incorporation alone does not create an exit-ready business.
Tax director Louise Mollahan highlighted structural issues that commonly arise across both veterinary and wider SME sectors.
“We regularly see situations where the trading company and property ownership are completely misaligned,” she said.
“Whether it’s a veterinary practice, a dental clinic or another professional service firm, those structures can create significant tax exposures around capital gains tax, VAT, and retirement relief if not addressed early.”
Generational transition
The findings come at a time when many Irish SMEs are approaching generational transition, with consolidation trends, rising operating costs, and higher workforce expectations placing additional pressure on owners to plan more strategically.
“Exit planning isn’t about retiring tomorrow,” Mollahan added.
“It is about ensuring the business, the structure, the assets and the valuation are aligned well before any transition event, something many Irish SMEs still underestimate.”
