Double Location Pet Boarding & Grooming
12 shared employees run the facilities allowing passive ownership!
Twelve shared employees run these facilities, allowing passive ownership! Dogs and cats are welcome at these two spacious grooming, boarding, and daycare locations in Southern Wisconsin/Northern Illinois. This business can accommodate 109 for boarding, and at one location 30 dogs for daycare. One location has a large daycare play area where dogs can romp and tumble from morning until night. Self-wash stations are available for customers to bathe their own pets while professional grooming services are available for those who need a nail trim or specialty cut. The owners currently manage the finances as well as the marketing and many of their oversight duties can be assumed by current staff.
This company has two locations outfitted with one self-wash station each, many kennels, indoor and outdoor play areas, and a large retail floor. Location one has 8,000 square feet, while location two has 6,500. The twelve staff members are shared between both locations. Seven team members assist customers and are play attendants while five are groomers.
With few competitors in the area, this business has plenty of room to grow with consumer demand. Online retail sales and delivery are set to start soon. One location has room to expand into underutilized space, creating a greater capacity for canine customers. In addition, building a social media following as well as a review campaign could help customers engage with the business and create community behind the brand.
- Year Established: 1990
- Location: Southern Wisconsin, Northern Illinois
- Service Area: Local customers
- Services: Pet self-wash, grooming, boarding, daycare, retail
- Buildings: Location 1: 8,000 sq. ft.; Location 2, 6,500 sq. ft.; Both locations: Self-wash stations, grooming, retail, boarding kennels; Daycare play areas are at location 1
- Reason for Selling: Retirement
- Employees: 12: Shared between locations, 5 groomers, 7 customer service and play attendants
- Seller Training Period: 90 days or as negotiated
- Growth Opportunities: Online retail sales, Location 1 has room to add additional kennels and play areas, build social media following and engagement
- Current Owners’ Responsibilities: Financial management and marketing, both work part-time
- List Price: $735,000
- Gross Sales:
- 2019: $658,930
- Cash Flow:
- 2019: $237,353
- Assets Included in Purchase*
- Equipment: $220,000: Kennels, grooming equipment, office equipment, furniture, fixtures, wash stations
- Vehicles: $27,000: 1 van
- Inventory: $45,000: Pet food, treats, leashes, collars, bedding, apparel, toys, flea and tick treatment, etc.
- Intangible Assets: True love for animals, focus on healthy products, adorable branding
*amounts may vary, assets may be depreciated, replacement cost, or fair market value
Cash Flow Analysis
|Description of Financial Statement||Tax Return|
|Net Income Shown on Financial Statement||$36,416||$8,717||$45,133||$22,376||$15,513||$37,889||$-3,596||$-3,594||$0|
|Auto-Personal Use||$1,384||$0||$1,384||$5,668||$302||$5,970||$3,730||$4,212||$482||90% Personal|
|Travel Expense||$1,198||$93||$1,291||$1,533||$4,442||$5,975||$3,247||$8,184||$4,937||90% PErsonal|
|Compensation to Owner||$15,440||$97,848||$113,288||$19,637||$96,765||$116,402||$0||$118,963||$118,963|
|Rent Adjustment||$0||$0||$33,500||$0||$0||$39,500||$0||$36,000||$0||Ongoing rent for combined is $6k/month|
|Seller's Cash Flow = Total Addbacks + Net Income||$79,690||$124,163||$237,353||$66,744||$126,487||$240,631||$62,327||$231,276||$132,947|
|Profit Margin||30.75 %||31.06 %||36.02 %||25.24 %||29.64 %||34.81 %||23.19 %||32.87 %||30.56 %|
- Profit Margin 2019: 36%
- Pet self-wash
- Daycare at one location
Total Employees: 12
- Shared between locations
- 5 Groomers
- 7 Customer service and play attendants
- Online retail sales
- Location 1 has room to add additional kennels and play areas
- Build social media following and engagement
The formula used is as follows:
Cash Flow x Prescribed Multiple = Fair Market Value
Cash flow is the sum of business net income plus any owner perks and any non-onward going expenses.
A prescribed multiple is determined by a 20 question, 100-point parameter ranking system that is used to analyze the current business health. Each question is based on a scale from 1 to 5: 1 being low, 2 below average, 3 average, 4 above average, 5 high. The average of the responses sum is the business’ prescribed multiplier.
For this business, a 2019 cash flow was used with a prescribed multiple is 3.1. With this information, the computation is as follows:
$237,353 x 3.1 = $735,794
The fair market value found above positions the business list price at $735,000.
Purchase Price: $735,000
10%Buyer Down Payment: $73,500
13%Seller Financing: $95,550
77%Bank Loan: $565,950
Seller financing 5-year term at a rate of 4.50% equals a monthly loan payment of $1,781.
Bank loan 8-year term at a rate of 6% equals a monthly loan payment of $7,437.
A lender is required to have a minimum 1.5 coverage ratio for any business loans extended. At a proposed purchase price of $735,000 with the terms listed above, the coverage ratio is 2.18.
Please note that the decision of whether to extend a loan on any sale belongs to the bank, and this document does not guarantee specific terms or verify that financing is available.
*The Firm is not a real estate brokerage and therefore the staff will not handle any aspect of the lease, sale or purchase of real estate.
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Omaha, NE 68114
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