How to Sell Your Pet Service Business at the Right Price
It’s no secret that the pet industry is massive – from cats and dogs to goldfish and exotic reptiles. Early estimates of the pet industry in New Zealand claim that the market is worth over $1.8 billion. With nearly 64 per cent of Kiwi households owning at least one pet, it’s evident that New Zealanders care about their pets.
This provides entrepreneurs with an investment opportunity. There is a growing interest in buying pet service businesses, including grooming companies, veterinarian businesses, and more.
However, as a pet business owner, you need to know where and how to find interested buyers and secure the best price. This is where experienced business brokers like myself come in. I set up a pet food import and distribution business and run it for 3 years in New Zealand before selling it and now being a business broker allows me to know the ins and outs of finding the ideal buyer, which prevents you from spending months scouring online directories to list your business for sale.
However, there are a few things to keep in mind.
Does the Business Completely Depend on You?
There is a key challenge you may have to overcome: proving that clients don’t associate you with the business. For example, it may be harder to sell a business if it is named after you, the owner. On the other hand, if you’ve managed to successfully delegate core aspects of the business to managers, you will have an easier time making more from the sale of your pet service business.
This is because clients don’t associate the business with you.
If your pet service business depends on you, train your employees to gradually govern its day-to-day affairs independently.
Having Good Online Reviews
Having a steady supply of positive online reviews demonstrates social proof and helps generate more business in the future. Buyers are often more willing to pay more to acquire an established pet service business that has received glowing recommendations. You can start preparing for this by getting your business listed on websites like Trustpilot and Yelp.
The Revenue Has Increased During the Last Years
If you’ve managed to increase your revenue by 10 per cent or more in the years preceding the sale, buyers will line up to acquire your business because they will anticipate a similar growth trajectory under their care.
The sales process can go very well – but you’ll have to handle a lot of paperwork in order to prove to prospective buyers that your business is a good deal. This means having to generate multiple sales reports, profit and loss statements, and other financial documents. You’ll have to organize the financial aspects. You may also have to provide post-transition training to the owner to run the business.
Lots of Mergers and Acquisitions in the Pet Service Industry
It’s a common trend in the pet industry for larger businesses to acquire smaller businesses for greater brand awareness and economies of scale. Private equity groups, in particular, are the ideal buyers to approach. They usually have multiple pet care businesses and veterinarian firms. A firm that sells pet toys may be interested in buying businesses that provide pet grooming services.
Contact me, Serdar Kabul to discuss the details of your pet service business. I know a variety of pet industry buyers and can use a number of marketing tools to confidentially advertise your business.