Opportunities
Dog Training in Nebraska with 74% Profit Margin
Highly trusted business with a new, larger facility!
Specifications
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 Statement | P&L Statement | P&L Statement | Tax Return | Notes |
| 2021 | 2020 | 2019 | ||
| 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 | $8,857 | Personal 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 Margin | 72.29 % | 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
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: | % |
Attachments
| Document Title / Description |
|---|
This folder is empty.
Email
Print
Already have an account? Log in here.
Print, sign and send to:
210 N 78th St. 2nd FloorOmaha, NE 68114
Or fax to:
f 402.939.0857