Another related issue with this has been the rise in the cost of getting a DVM and the associated debt load. The vets who would be at the point in their career where they’d be buying practices from their retiring DVM boss cannot afford to do so (based on anecdata from my brother who was trying to sell his practice last year but his cancer overtook him so he wasn’t able to complete a deal).
Just a spot check - but a DVM at the University of Florida (the first vet school that popped into my head) is $30k/year for tuition and books. At 4 years, that's a $120k degree - but from my understanding, starting a vet practice is over a $1MM, so it's safe to assume buying an existing vet practice is at least $1MM, and I don't think $120k in debt would be THE limiting factor for buying a $1MM+ practice. (and that's assuming a recent DVM vet buying the practice, not a 10+ year experienced vet that's probably already paid off their student loads)
It stands in stark contrast to dentistry. Two new grads I know (of middle class means) were able to get $3-5M loans with little to nothing down, and no other collateral, to acquire a practice and to start a practice.
I've heard a similar complaint from my dentist, who said practices are being sold to private equity instead of dentists coming out of school. My understanding is that her field, it's happening through Dental Support Organizations and Orthodontic Support Organizations.
