Opportunities
Wisconsin Dog Daycare with 2 Locations
Sold
Booked months out with wait lists in place
Specifications
This 2 location doggy daycare in Wisconsin is currently booked up months in advance. Offering daycare, grooming and offsite pet-sitting services, this business attracts young professionals with disposable income and treat pets like family. Large spaces allow for both play and rest, keeping dogs active and happy.
Services available to clients are dog daycare, grooming and off-site pet sitting., with most of the income generated by dog daycare services. Recurring daycare clients come 2-3 times per week. Most of the gross sales come from daycare services. Grooming is available one day per week at Location 1, and could be expanded to additional days at that location or spread services across both locations. Opening an additional location would also be a growth opportunity, because there is more demand than this business has capacity for.
Location 1, which is 1,700 sq./ft., has a capacity of 40 dogs and Location 2 is 3,200 sq./ft. with a capacity of 60 dogs. Both locations are booked out for months and full every day with waiting lists
Each location has its own staff in place, which include a Store Manager and Caretakers. Location 1 has 2 full time and 3 part time employees; while Location 2 has 2 full time and 13 part time employees. Many of the part time employees are students. There is no overnight boarding at either location; but ten of the current employees are also available for off-site pet sitting in their homes (which generally occurs around holidays when clients are leaving town).
Business Highlights
- Year Established:
- Location 1: 2012
- Location 2: 2015
- Location: Madison, WI
- Services:
- Dog Daycare
- Grooming
- Off-site Pet Sitting
- Building: Location 1 – 1,700 sq./ft.; Location 2 – 3,200 sq./ft.
- Reason for Selling: Spend more time with family
- Employees:
- Location 1 – 2FT and 3PT;
- Location 2 – 2 FT and 13 PT;
- Each location has a Store Manager and Caretakers;
- 10 of total current staff members can pet-sit at their homes
- Seller Training Period: Negotiable
- Growth Opportunities: Open additional location; Add grooming to second location (currently only in Location 1)
- Administration (payroll, scheduling, accounting – could be handled by front desk staff); Marketing
Financial Highlights
- List Price: $715,000
- Gross Sales:
- 2017: $527,726
- 2016: $449,087
- 2015: $244,087 (Only one location open)
- Cash Flow:
- 2017: $178,141
- 2016: $104,781
- 2015: $48,327 (Only one location open)
Typical Clients
- Location 1
- Median Age: 45-46
- Lawyers, government workers, school district employees
- Disposable Income
- Location 2
- Median Age: 30
- Computer-related jobs
- Single-family income of $75,000 or more
- No children
Services/Amenities
Dog Daycare
| Grooming
|
|---|---|
Pet Sitting
|
Employees
- Location 1 – 2FT and 3PT
- Store Manager
- Caretakers
- Pet Sitters
- Location 2 – 2FT and 13PT
- Store Manager
- Pet Sitting Manager
- Lead Caretaker
- Caretakers
Valuation Details
The Firm Business Brokerage used a Cash Flow Valuation methodology to determine the Purchase Price of the business.
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 multiple is prescribed 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 multiple.
For this business, the 2017 Cash Flow was used with a prescribed multiple is 4.02. With this information, the computation is as follows:
$178,141 x 4.02 = $716,127
The Fair Market Value found above positions the business List Price at $715,000.
Funding Example
Purchase Price: $715,000
10%Buyer Down Payment: $71,500
10%Seller Financing: $71,500
80%Bank Loan: $572,000
Seller Financing 5-year term at a rate of 4.50% equals a monthly loan payment of $1,333.
Bank Loan 7-year term at a rate of 6% equals a monthly loan payment of $8,356.
After business expenses and loan payments, a buyer with a 10% down payment of $71,500 would retain a profit of $61,872 which results in an 87% return on investment in the first year.
A lender is required to have a minimum 1.5 coverage ratio for any business loans extended. At a proposed Purchase Price of $715,000 with the terms listed above, the coverage ratio is 1.53.
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.
Print, sign and send to:
210 N 78th St. 2nd FloorOmaha, NE 68114
Or fax to:
f 402.939.0857