Opportunities
Dog Training in South Central Nebraska with 67% Profit Margin
Selling at a low multiple with a 367% return on investment!
Specifications
This dog training & boarding business is selling at a low 2 multiple with a 367% return on investment! With 5 experienced staff members and boasting a 67% profit margin, they specialize in behavior modification and service dog training, which sets this company apart from the competition. They also have proven dog training methods and results. This boutique canine training business in Central Nebraska is well-positioned for growth and expansion into unique markets. The facility offers classes for individuals looking for dog behavior modification, basic obedience, and hunt training. Boarding and daycare are available for those who require long-term or daytime care. Off-site classes are available for veterinarians, rescue groups, as well as for corporate and independent pet stores. Social media reviews are superb and truly show the effusive customer satisfaction with this company and their results. The owner trains new employees and oversees operations. The staff is competent and can manage the day-to-day tasks with little oversight.
The facility is well-suited to this business. It features a 25 x 30 building for training and kennels, with three exercise yards. There is a secondary office and training building on the property as well. This space is potentially available outside the sale of the business and is available for continued lease in the short-term. Expansion could be found by moving this business to a larger city to gain additional customers or potential foot traffic. Additional growth may be found in building website traffic and exposure, adding more off-site training classes, as well as adding trainers to the staff to increase capacity. A new owner would not need to have experience with dog training to take over the business; exceptional customer service skills would be ideal.
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 facility with several outdoor exercise and training yards, 25 x 30 building, secondary office and training building, paved roads
- 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 employee training
Financial Highlights
List Price: $310,000
- Gross Sales:
- 2020: $232,573
- 2019: $166,379
- Cash Flow:
- 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 | Tax Return | Tax Return | Tax Return | Tax Return | Notes |
| 2020 | 2019 | 2018 | 2017 | 2016 | ||
| GROSS SALES | $232,573 | $166,380 | $178,596 | $85,382 | $17,728 | |
| Net Income Shown on Financial Statement | $181,767 | $68,283 | $45,983 | $52,514 | $5,293 | |
| ADDBACKS | ||||||
| Utilities | $1,922 | $5,924 | $8,380 | $0 | $0 | |
| Auto - Personal Use | $0 | $8,857 | $12,008 | $0 | $8,917 | Personal expense |
| Depreciation | $0 | $0 | $23,273 | $0 | $0 | |
| Replacement | $-25,000 | $-25,000 | $-25,000 | $-25,000 | $-25,000 | |
| Rent | $-2,000 | $-2,000 | $-2,000 | $-2,000 | $-2,000 | |
| TOTAL ADDBACKS | $-25,078 | $-12,219 | $16,661 | $-27,000 | $-18,083 | |
| Seller's Cash Flow = Total Addbacks + Net Income | $156,689 | $56,064 | $62,644 | $25,514 | $-12,790 | |
| Profit Margin | 67.37 % | 33.70 % | 35.08 % | 29.88 % | -72.15 % |
- Profit margin: 67%
Clients
- Individuals
- Veterinarians
- Hunters
- Corporate and independent pet stores
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
- Additional ideas will be provided by the owner!
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: 2020 Cash Flow |
$ |
| Annual Debt Service: | $ |
| RATIO: |
Buyer's Net Operating Income (NOI)
The amount of money the Buyer will retain as profit.
|
Cash Flow: 2020 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 |
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