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Dog Training in Nebraska with 74% Profit Margin

Highly trusted business with a new, larger facility!

CASH FLOW
$253,161

Specifications

  • Price
    $640,000

  • Revenue
    $350,206

  • Profit Margin
    72%

  • Location
    Kearney County, Nebraska

  • Service Area
    Most clients are from Nebraska, with some from each surrounding state and across the U.S.

  • Equipment
    $50,000

  • Employees
    5: All staff can train and care for the animals

  • Lease
    Large completely indoor facility, 40 x 70, includes 24 large kennels as well as space for training

  • Intangible Assets
    Proven dog training methods, excellent social media reviews, proven results, proprietary software

 

This dog training & care business recently moved into a new, larger facility in Kearney, Nebraska. Selling at a low multiple with a 240% return on investment, this business boasts a 72% profit margin in 2021 and passive ownership, with the current owner spending about 10 hours a week on the business, coming mostly when he wants to. Proven dog training methods and results as well as excellent customer service sets this dog training & care business apart from the competition. The business trains service dogs over long-term periods as well as offering shorter training periods for dogs and daily daycare services. Online classes are also available, and the business has been expanding their services with plenty of room remaining for growth.

 

The 5 person staff is extremely competent, with each staff member able to both train and care for dogs. Clients served include individual pet-owners, veterinarians, hunters, corporate and independent pet stores, and rescue groups. This business is also poised to grow – it grew during Covid and is on a continued upward trajectory, despite doing almost no marketing and relying mostly on word of mouth. Continued expansion of services, particularly online services, could take this business to the next level. The current owner recommends maintaining the focus on excellent customer service and transparency.

 

A 10% down payment of $64,000 returns $158,102 in the first year after debt payments, a 247% return on investment!

 

Business Highlights

  • Year Established: 2016
  • Location:  Kearney County, Nebraska
  • Service Area:  Most clients are from Nebraska, with some from each surrounding state and across the U.S.
  • Services: Dog training: behavior modification, individual and group classes, boarding, off-site classes, in-home training, grooming rehabilitation, grooming, service and working dog training; daycare
  • Clients: Individuals, veterinarians, hunters, corporate and independent pet stores
  • Lease: Large completely indoor facility, 40 x 70, includes 24 large kennels as well as space for training
  • Reason for Selling: Career change
  • Personnel: 5: All staff can train and care for the animals
  • Seller Training Period: 6 months
  • Growth Opportunities: Expand service dog training and raising, move location to larger city to gain additional customers as well as foot traffic, continue off-site classes and work to build clientele, grooming services
  • Current Owner’s Responsibilities: Oversight and helping trainers, 10 hours a week. 

Financial Highlights

List Price: $640,000

  • Gross Sales:
    • 2021: $350,206
    • 2020: $232,573
    • 2019: $166,379
  • Cash Flow:
    • 2021: $253,161
    • 2020: $156,689
    • 2019: $56,064
    • 2018: $62,644

Assets of Business

  • Assets: $50,000

 

  • Equipment: Dog kennels, training equipment

     

  • Intangible: Proven dog training methods, excellent social media reviews, proven results, proprietary software

Cash Flow Analysis

Description of Financial StatementP&L StatementP&L StatementTax ReturnNotes
202120202019
GROSS SALES$350,206$232,573$166,380
Net Income Shown on Financial Statement$276,264$181,767$68,283
ADDBACKS
Utilities$1,897$1,922$5,924
Auto - Personal Use$0$0$8,857Personal expense
Depreciation$0$0$0
Replacement$-25,000$-25,000$-25,000
Rent$0$-2,000$-2,000
TOTAL ADDBACKS$-23,103$-25,078$-12,219
Seller's Cash Flow = Total Addbacks + Net Income$253,161$156,689$56,064
Profit Margin72.29 %67.37 %33.70 %
  • Profit margin: 72%

Clients

  • Individuals
  • Veterinarians
  • Hunters
  • Corporate and independent pet stores
  • Rescue groups

Specific information regarding clients is available upon the receipt of a signed Non-Disclosure Agreement.

Services

  • Dog training:
    • Behavior modification
    • Individual classes
    • Group classes
  • Boarding
  • Off-site classes
  • In-home training
  • Grooming and grooming rehabilitation
  • Service dog training
  • Daycare

Personnel

Total personnel: 5

  • All are generalists who can train and care for the animals.

Growth Opportunities

  • Expand service dog training and raising
  • Move location to larger city to gain additional customers as well as foot traffic
  • Continue off-site classes and work to build this clientele
  • Add agility and flyball training
  • Marketing - currently only word of mouth 

Valuation Details

Funding Example

Purchase Price:

$640,000

$
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Years
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Bank Loan Needed: $

Years
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Funding Details

Business:

Offer Price: $

% Buyer Cash Down at Closing: $

% Seller Carry Back via Promissory Note: $

year term at a rate of %

% of Purchase Price secured by Buyer and Seller

Total Bank Loan Need: $

% of Purchase Price

Desired Loan Type:

Desired Bank Terms: year term at a rate of %

Total Business Assets, Inventory, and A/R: $

Total Undercollateralized Loan: $

Loan Payments

Monthly Payment to Bank: $
Yearly Payment to Bank: $
Monthly Payment to Seller: $
Yearly Payment to Seller: $
Total Monthly Debt Service: $
Total Yearly Debt Service: $

Conclusions

Fixed Charge Coverage Ratio

The bank will require a minimum ratio of 1.5 to be lendable.

Cash Flow:
2021 Cash Flow
$
Annual Debt Service: $
RATIO:

Buyer's Net Operating Income (NOI)

The amount of money the Buyer will retain as profit.

Cash Flow:
2021 Cash Flow
$
Annual Debt Service: -$
NOI:

Buyer's Return on Investment (ROI)

The rate of return on the Buyer's down payment.

Down Payment: $
NOI:
ROI: %

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210 N 78th St. 2nd Floor
Omaha, NE 68114

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The Firm makes no warranties or representation in consideration to the information provided above. All communication regarding this business must occur directly with The Firm Advisors, LLC. The Firm is not a real estate brokerage and does not sell real estate. The Firm solely advises on exit strategy.