Inspire Veterinary Partners Signs Exclusive Non-Binding Letter of Intent to Acquire Central Florida Based Animal Hospital

Rhea-AI Summary

Inspire Veterinary Partners (Nasdaq:IVP) has signed a non-binding letter of intent to acquire a central Florida-based animal hospital. The proposed acquisition could:

• Add approximately $1.8 million in unaudited revenue
• Increase IVP's Florida locations to 5
• Bring total network hospitals to 14

The multi-doctor general practice offers comprehensive companion animal services, including surgical procedures, dental care, and wellness care. The transaction is expected to close in Q2 2025, subject to due diligence and a definitive agreement. The acquisition aligns with Inspire's growth strategy in the Florida veterinary market, where they currently operate four animal hospitals.

Positive

• Potential addition of $1.8M in revenue
• Strategic expansion in growing Florida veterinary market
• Increases operational efficiency through network expansion
• Growing pipeline of acquisition opportunities for 2025

Negative

• Non-binding LOI with no guarantee of deal completion
• Subject to due diligence and definitive agreement

Insights

Financial Analyst

Inspire Veterinary Partners has signed a non-binding letter of intent to acquire a central Florida animal hospital that could potentially add $1.8 million in unaudited revenue to their operations. This represents a significant potential revenue addition relative to IVP's current $2.66 million market capitalization.

The proposed acquisition aligns with the company's stated growth strategy, potentially increasing their Florida footprint to 5 locations and expanding their total network to 14 animal hospitals. Management clearly views Florida as a strategic growth market, citing rapid growth in the region's veterinary sector.

However, investors should exercise caution regarding several key factors:

• This is only a preliminary, non-binding agreement, with many such LOIs never progressing to completed transactions
• No financial terms were disclosed regarding acquisition cost or valuation multiples
• No profitability metrics for the target were provided
• No information about financing was mentioned

While management's comments about a "revitalized pipeline" suggest this could be one of multiple potential acquisitions in 2025, the preliminary nature of this announcement means it represents only a modest step in IVP's growth trajectory. The transaction timeline pointing to potential Q2 2025 closing indicates several months of due diligence remain before potential completion.

Veterinary Industry Expert

This potential acquisition reflects Inspire's continued implementation of a regional clustering strategy within Florida, a state with favorable veterinary market demographics. The multi-doctor practice offering comprehensive services (surgical, dental, wellness) represents the ideal acquisition target profile for veterinary consolidators seeking established operations with consistent revenue streams.

By potentially expanding to 5 Florida locations, Inspire would achieve a threshold that typically enables meaningful operational efficiencies including:

• Shared emergency coverage rotations among doctors
• Regional management oversight rather than direct corporate supervision
• Improved supplier pricing through increased volume
• Cross-referral opportunities between locations

The veterinary consolidation landscape remains highly competitive, with numerous private equity-backed platforms and public companies pursuing similar acquisition strategies. Inspire's focus on building density in Florida represents sound strategic thinking, as scattered locations typically underperform compared to clustered practices.

While the $1.8 million revenue figure suggests a mid-sized practice, the multi-doctor nature indicates potential for continued organic growth. However, the non-binding nature of this LOI means several critical hurdles remain before completion, including doctor retention agreements, facility assessment, and comprehensive financial verification - any of which could derail the transaction.

Proposed acquisition could potentially add approximately $1.8 million (unaudited) revenue, increase Inspire's current locations in Florida to 5, and bring the total number of animal hospitals in its network to 14.

VIRGINIA BEACH, VA / ACCESS Newswire / March 17, 2025 / Inspire Veterinary Partners, Inc. (Nasdaq:IVP) ("Inspire" or the "Company"), an owner and provider of pet health care services throughout the U.S., today announced it has entered into an exclusive, non-binding letter of intent to acquire 100% ownership interest in one animal hospital located in central Florida. If completed, the acquisition could potentially add approximately $1.8 million in (unaudited) revenue. The multi-doctor general practice location offers a full range of services for companion animals, including surgical procedures, dental care and wellness care.

Kimball Carr, President & Chief Executive Officer of Inspire, commented, "We are excited to announce this possible transaction, which could mark an important milestone in our growth strategy. The Florida veterinary market has been growing rapidly, and the outlook remains healthy. With our four animal hospitals currently serving pets and their owners in the Florida market, we look forward to the potential opportunity of adding a successful and profitable fifth hospital to our network and further leveraging the management and operational efficiencies associated with our growing network of hospitals."

Carr continued, "The recent addition of our new director of business development is revitalizing our pipeline of opportunities to accelerate our growth through strategic acquisitions and partnerships. We are excited about both the number and quality of potential animal hospitals interested in exploring the opportunity to join the Inspire family and we look forward consummating additional potential acquisitions as we move through 2025."

Acquisition Overview

• Inspire has signed a LOI to acquire 100% of one animal hospital, located in central Florida.

• This strategic acquisition, if consummated, would potentially expand Inspire's revenues from its Florida locations and align with Inspire's mission to expand its network in the state of Florida.

• The transaction is expected to close in Q2 2025, subject to due diligence and a definitive agreement.

Transaction Details and Vision

The LOI outlines the preliminary terms of the acquisition and reflects the mutual interest of both parties in finalizing the transaction in the coming months. Inspire and the acquiree will continue their ongoing due diligence to assess the deal's operational, financial, and strategic aspects before executing a definitive agreement.

The parties have agreed to act in good faith to negotiate definitive agreement and complete due diligence. Accordingly, there can be no assurance that a definitive agreement will be entered into or that the proposed transaction will be consummated. Readers are cautioned that those portions of the LOI that describe the proposed transaction are non-binding. Inspire only intends to announce additional details regarding the proposed transaction if and when a definitive agreement is executed.

About Inspire Veterinary Partners, Inc.

Inspire Veterinary Partners is an owner/operator of veterinary hospitals in the US. As the Company expands, it expects to acquire additional veterinary hospitals, including general practice, mixed animal facilities, and critical and emergency care.

For more information, please visit: www.inspirevet.com.

Connect with Inspire Veterinary Partners, Inc.

Facebook

https://www.facebook.com/InspireVeterinaryPartners/

LinkedIn

https://www.linkedin.com/company/inspire-veterinary-partners/

Forward-Looking Statements

This press release contains forward-looking statements regarding the Company's current expectations. These statements are not guarantees of future performance and are subject to certain risks, uncertainties and assumptions that are difficult to predict. Factors that could cause actual results to differ include, but are not limited to, risks and uncertainties related to the satisfaction of customary closing conditions related to anticipated acquisitions, or factors that result in changes to the Company's anticipated results of operations related to acquisitions. These and other risks and uncertainties are described more fully in the section captioned "Risk Factors" in the Company's public filings made with the Securities and Exchange Commission, including its Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. Forward-looking statements contained in this announcement are made as of this date, and the Company undertakes no duty to update such information except as required under applicable law.

Investor Contact

TraDigital IR
Kevin McGrath
+1-646-418-7002
kevin@tradigitalir.com

General Inquires

Morgan Wood
Mwood@inspirevet.com

SOURCE: Inspire Veterinary Partners, Inc.

View the original press release on ACCESS Newswire

FAQ

What is the expected revenue impact of IVP's proposed Florida animal hospital acquisition?

The acquisition could potentially add approximately $1.8 million in unaudited revenue to Inspire Veterinary Partners.

When is IVP expected to close the acquisition of the Florida animal hospital?

The transaction is expected to close in Q2 2025, subject to due diligence and definitive agreement.

How many locations will IVP have in Florida after the proposed acquisition?

After the acquisition, IVP will have 5 locations in Florida, up from their current 4 animal hospitals.

What services does the new IVP acquisition target offer?

The multi-doctor general practice offers surgical procedures, dental care, and wellness care for companion animals.