Pet Grooming, Training, or Boarding Valuation Multiples
Planning to buy, grow, or sell a pet grooming, training, or boarding business? Determining the business’s true value is a vital step in the process. This information sets a strong foundation for making strategic decisions that support your goals. A quick way to get a broad estimate of your company’s fair market value is to apply pet grooming, training, or boarding valuation multiples. However, keep in mind that relying on valuation multiples comes with risks.
This article explains the most common valuation multiples used for a pet grooming, training, or boarding business. In addition, it outlines key risks to be aware of when working with these tools. Please note that the figures we provide are only industry averages and may not reflect the specific value of your business. For a more precise and defensible pet grooming, training, or boarding business valuation, it is best to connect with a certified valuation professional.
At Peak Business Valuation, we regularly work with pet grooming, training, and boarding businesses nationwide. Whether you are seeking financing, preparing to sell, or evaluating opportunities for growth, we can deliver a fast, reliable business valuation. If you have questions about how to value a pet training, grooming, or boarding business, schedule a free consultation below!
What are Pet Grooming, Training, or Boarding Valuation Multiples?
Valuation multiples are financial ratios that compare a company’s value to its financial performance. Valuation experts determine applicable multiples by reviewing recent transactions of similar pet service businesses. By applying the chosen multiple to financial metrics such as earnings or revenue, business appraisers can estimate a business’s fair market value. For more details, see Valuation Multiples for a Pet Training, Grooming, or Boarding Business.
Common Pet Grooming, Training, or Boarding Valuation Multiples
During a pet grooming, training, or boarding business valuation, Peak Business Valuation often utilizes SDE, EBITDA, and revenue multiples. Each method considers a different aspect of the company’s value. Valuation analysts typically compare results across more than one multiple to ensure accuracy. Below, we review SDE, EBITDA, and revenue multiples with their typical ranges for the pet services industry.
SDE Multiples for a Pet Grooming, Training, or Boarding Business
Seller’s Discretionary Earnings (SDE) reflect the financial benefit an owner can expect to earn from the pet grooming, training, or boarding business. This method is commonly used for small to mid-sized companies. To determine SDE, valuation experts add back the owner’s salary, discretionary expenses, and one-time costs to net income.
Formula: Value = SDE × Multiple
Range: SDE multiples for pet grooming, training, or boarding businesses often fall between 2.77x and 3.32x SDE.
EBITDA Multiples for a Pet Grooming, Training, or Boarding Business
Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) measure a company’s operating profitability without the impact of non-operational expenses. EBITDA multiples are most often used for larger pet services businesses or those with multiple facilities.
Formula: Value = EBITDA × Multiple
Range: EBITDA multiples for pet grooming, training, or boarding businesses usually range from 3.56x to 4.10x EBITDA.
Revenue Multiples for a Pet Grooming, Training, or Boarding Business
Revenue represents the total sales a pet grooming, training, or boarding business generates in a 12-month period. Although revenue multiples do not account for profitability or expenses, they can still be helpful when compared with SDE or EBITDA multiples.
Formula: Value = Revenue × Multiple
Range: Pet grooming, training, or boarding businesses often transact within a revenue multiple range of 0.77x to 1.24x.
At Peak Business Valuation, we specialize in pet grooming, training, or boarding business valuations. As part of the valuation process, we apply valuation multiples alongside an analysis of risks, growth potential, market positioning, and more. This ensures a reliable fair market value estimate to guide your decisions. If you have questions about pet grooming, training, or boarding valuation multiples, schedule a free consultation today!
How to Value a Pet Grooming, Training, or Boarding Business Using Multiples
Accurately applying pet grooming, training, or boarding valuation multiples involves more than simply plugging numbers into formulas. Business appraisres also make adjustments to reflect the unique characteristics of the business. This includes factors like financial health, operational efficiency, and local market conditions. In addition, Peak Business Valuation often normalizes financials to account for seasonal swings or unusual one-time expenses. For further insights, read How to Value a Pet Training,Grooming or Boarding Business.
Rules of Thumb for Pet Grooming, Training, or Boarding Businesses
Valuation multiples are common rules of thumb for the pet grooming, training, or boarding industry. However, these simplified methods can overlook key factors that drive the worth of an individual pet grooming, training, or boarding business. While multiples can be helpful for preliminary planning, they should not guide major decisions. Relying on these tools can lead to costly mistakes, whether you are buying, growing, or selling a pet grooming, training, or boarding business. For the most accurate business valuation, it is essential to work with a certified valuation expert. Reach out to Peak Business Valuation today to get started!
Factors Affecting Pet Grooming, Training, or Boarding Valuation Multiples
Many variables can influence whether a pet services business receives higher or lower valuation multiples. Determining these factor can help business owners take steps to increase a pet grooming, training, or boarding business’s value. Some common value drivers for pet service businesses include:
- Proximity to Key Markets: Pet businesses positioned near areas with high pet ownership and affluent populations often receive higher valuation multiples. These locations generally experience steady booking volume and stable revenue.
- Reputation and Online Presence: Receiving positive reviews and implementing effective digital marketing campaigns can significantly improve demand. This helps promote stronger pet grooming, training, or boarding valuation multiples.
- Competitive Pricing Strategy: Providing high-quality services at a competitive price attracts more customers while maintaining profitability. These traits are appealing to buyers and investors.
- Skilled Workforce: Pet grooming, training, or boarding businesses with a knowledgeable staff can provide an exceptional customer experience and operate more efficiently. This helps the business stand out from competitors, increasing its overall worth.
See Value Drivers for a Pet Training, Grooming, or Boarding Business to learn more.
Conclusion
Pet grooming, training, or boarding valuation multiples are helpful valuation tools when seeking a general value estimate. However, multiples are based on market averages and often overlook critical value drivers. If you are buying, growing, or selling a pet training, grooming, or boarding business, it is best to obtain a professional business valuation. Valuation experts assess the unique risks and strengths of your company to ensure an accurate business appraisal.
As a professional business appraiser, Peak Business Valuation works with pet grooming, training, and boarding businesses across the country. We are available to answer any questions you may have about how to value a pet training, grooming, or boarding business. In addition, we can support you with a defensible business valuation. Start today by scheduling your free consultation with Peak Business Valuation below!
Check out Pet Grooming, Training, or Boarding Business Valuations or Valuing a Pet Training, Grooming, or Boarding Business for more information.
