09/29/2025
How do interest rates affect practice value?
Interest rates significantly affect the value of veterinary practices in several ways:
Borrowing Costs: Low interest rates make it easier for buyers to finance their purchases, leading to more competitive bids and potentially higher valuations.
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Purchasing Power: Rising interest rates can reduce the purchasing power of buyers, impacting the pool of qualified buyers and decreasing practice valuation.
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Market Trends: Practices with high profitability and a strong client base tend to command higher valuations, especially in high-demand areas.
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Economic Conditions: The overall economic environment, including inflation and interest rates, can influence buyer interest and the perceived risk of purchasing a practice.
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Understanding these factors can help veterinary practice owners navigate the market effectively and make informed decisions regarding sale or investment. WE CAN HELP!!
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or call us at (504)782-2203 OR (504)957-5506
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