Growing, Turn-Key Dog Day Care and Boarding Center with Strong Brand
Award-winner with strong cash flow and deep customer waiting list
The Company is a premium, award-winning dog day care and luxury boarding accommodations center. The Company operates in a highly stable and affluent Wisconsin location, very close to main transportation arteries, as well as residential and commercial centers. The Company has developed a turn-key operation, with a well-developed, differentiated brand and detailed processes and procedures. This has resulted in a highly trained, passionate staff that provides first-class service to pets and their owners. The company’s high-end facilities offer a safe and unique environment. The Company operates in a pristine 17,000+ sq. ft. facility (including indoor and outdoor space), with opportunities for possible expansion, which the Company has researched extensively. Numerous growth opportunities exist with current capacity, including expansion of its hotel services during weekdays.
Primary customers are a diversified group of affluent pet owners with higher than average discretionary income. The Company’s customers are very loyal. The Company has a high demand for its daycare and boarding accommodations which often results in waiting lists for its services.
The Company’s competitive advantage is based on the following differentiating factors:
1) Premium Luxury Services – Offering the highest quality, completely customized services for pets and their owners that provide a unique experience; fulfilling the promise of a personalized and consistent stay focusing on the long term relationship.
2) State of the Art Facility & Amenities – Quality materials used throughout the building, with private rooms (no chain-link), climate control, televisions in the boarding rooms, and the ever popular live streaming video of the day care for pet parents to view their dogs.
3) Great Reputation and Relationships – The Company is the recipient of numerous national and local awards. This excellent service has created a strong brand and relationships with customers.
4) Strategically Valuable Location – Ideal location offers convenience to many of the Company’s target customers.
The Company has built a highly diversified customer-base that seeks premier pet accommodations, care and service. The Company’s ongoing business year to year is not reliant on any one customer or group of customers. The top 10 customers at any given time represent less than 10% of annual revenues. Cash flows and earnings growth are stable due to the strength of the business and the relative economic stability of the local market.
Up to 47% of U.S. households own at least one dog. Of those households, the average number of dogs owned is 1.47, meaning many households own multiple dogs. There is a growing trend among dog owners to spend more on their pets, primarily because of the emotional connection between dogs and owners – 9 in 10 pet owners see their pet as an integral part of the family. The Pet Grooming and Boarding industry has nearly doubled over the past decade. Demand for pet grooming, boarding, training, and walking is at an all-time high, driven by rising pet ownership, improved disposable income and changing consumer preferences regarding pet care.
The Company's financial profile has consistently improved in recent years, with revenues and margin percentages increasing and providing a stable cash flow. The strength of the Company’s position in the market is evidenced by the fact that it has increased prices three times since 2011 without negatively impacting demand. From 2011 to 2013, revenue increased by 6% while margins improved, with EBITDA increasing 13%. The trend appears to be continuing in 2014. As of August 31, 2014, adjusted EBITDA is up nearly 20% year-over-year when compared to 2013.
The listing price is not less than $1,900,000 for the business and real estate.