Pet platforms as of 2024

Based on the most helpful WSO content, here are some insights on the pet platforms and vet clinic consolidations:

1. Chewy's Performance:

   • Chewy has reported a profitable quarter with net sales per active customer totaling $500, a 15% increase from the previous year.
   • Chewy is planning to expand internationally into Canada, which is expected to spur growth and profitability.

2. PetSmart's Acquisition:

   • PetSmart, the largest U.S. pet retailer, acquired the e-commerce pet startup Chewy.com for $3.35 billion, marking the biggest e-commerce acquisition ever.

3. Healthcare M&A Trends:

   • Vet health has been a significant focal point for sponsors, with EBITDA multiples ranging from mid to high teens.
   • There is a trend towards lower cost of care settings, such as outpatient PT and urgent care, driven by payors pushing plan members into cheaper care settings to avoid higher costs.

4. Private Equity Activity:

   • There has been notable private equity activity in the vet health space, with a focus on consolidating smaller pieces into larger platforms to achieve synergies and value creation.
   • The consolidation strategy involves buying at lower multiples and re-rating as part of the larger platform, which can create instant value even without significant earnings growth.

These points highlight the ongoing interest and strategic moves in the pet and vet health sectors, driven by profitability, expansion, and consolidation strategies.

Sources: Questions about Healthcare M&A, FOMC Texas Showdown | The Daily Peel | 6/2/2023, Donate and accelerate, Healthcare Rollup Strategy, Any PE people considered leaving to pursue search fund/entrepreneurship paths?