Valuing a Pet Training, Grooming, and Boarding Business
Unlike many industries, the pet training, grooming, and boarding industry benefited from COVID-19. Travel restrictions forced consumers to stay in their homes. To cope with the isolation, many people purchased new pets. As such, demand for pet training, grooming, and boarding services spiked in the following years. As this trend continues, operators have an opportunity for high revenue growth. This may be a good time to enter or exit the pet services industry. If you are buying or selling, a business appraiser can provide helpful guidance when valuing a pet training, grooming, and boarding business.
Determining the value of a pet training, grooming, and boarding business can be complicated. As such, Peak Business Valuation, business appraiser, works with many operators who are buying, growing, or selling a pet training, grooming, and boarding business. At Peak, we provide business valuations for pet grooming, training, and boarding businesses. During a valuation, we discuss key factors we consider when valuing a pet training, grooming, and boarding business. Below, we list a few of these factors. However, these are only a guide. For specific information about valuing a pet training, grooming, and boarding business you plan to buy or sell, schedule a free consultation with Peak Business Valuation.
Market Multiples for a Pet Training, Grooming, and Boarding Business
The values listed below are average multiples for a pet training, grooming, and boarding business. A valuation expert uses multiples when determining the value of a pet training, grooming, and boarding business.
- SDE Multiple Average Range: 2.77x – 3.32x
- EBITDA Multiple Average Range: 3.56x – 4.10x
- Revenue Multiple Average Range: 0.77x – 1.24x
**Disclaimer: These multiples are for educational purposes only. As such, the information provided does not constitute valuation advice. These multiples do not represent the valuation opinion of Peak Business Valuation or its valuation professionals. Instead, seek the guidance and advice of a qualified business valuation professional about any matter in this article.
How to Value a Pet Training, Grooming, and Boarding Business
There are a variety of methods experts use to value a pet training, grooming, and boarding business. Often, the cash flow multiples – SDE and EBITDA are most applicable. However, business appraisers receive extensive training to use their knowledge to determine what methods and multiples for your pet training, grooming, and boarding business are best.
Whether you are buying or selling, it is important to understand what your pet training, grooming, and boarding business are worth. Obtaining a business valuation helps you understand steps to take to increase the value of a pet training, grooming, and boarding business. The following paragraphs highlight a few success factors for a pet training, grooming, and boarding business. For more information, see Value Drivers for a Pet Training, Grooming, and Boarding Business, Valuation Multiples for a Pet Training, Boarding, and Grooming Business, and How to Value a Pet Training, Boarding, and Grooming Business. If you are looking for more specific guidance, schedule a free consultation with Peak Business Valuation, business appraiser.
Key Success Factors
At Peak Business Valuation, business appraiser, we value pet training, grooming, and boarding businesses on a regular basis. Below we discuss key success factors that help differentiate your pet training, grooming, and boarding business. A business appraiser considers these when valuing a pet training, grooming, and boarding business.
Proximity to Key Markets
The pet training, grooming, and boarding industry is very competitive. To succeed in this industry, it is important to identify key markets and locate near them. Doing so increases the likelihood of customers using your services. The largest market for pet training, grooming, and boarding industry is high-income households that own pets. Are there any areas with a high pet ownership rate nearby? Considering this factor can lead to a significant increase in sales revenue. When valuing a pet training, grooming, and boarding business, an expert considers your key markets.
Compliance with Regulations
Next, it is important to be aware of and comply with regulations. Failure to do so could result in injured pets, a bad reputation, and fines. Operators can avoid this by receiving proper licensing and studying animal welfare regulations. This is a basic necessity in the pet training, grooming, and boarding industry. By complying with regulations, pet training, grooming, and boarding businesses can keep pets safe. This increases customer trust which can lead to more business opportunities. Peak Business Valuation, business appraiser, compares your operations to competitors when valuing a pet training, grooming, and boarding business. For more information schedule a free consultation.
Developing a Strong Reputation
Additionally, competition in this industry is based on reputation. Often, your reputation is determined by how well you can satisfy customer needs. To do this, pet training, grooming, and boarding businesses must identify consumer demands. Currently, there is an increasing demand for luxury services. Pet owners see their pets as family members. By offering a variety of luxury services, you can increase customer satisfaction. Being aware of customer demands can lead to increased profitability. When valuing a pet training, grooming, and boarding business, Peak analyzes financial statements. Reputation influences your customer base which impacts revenue.
Effective Marketing Strategies
Last, pet training, grooming, and boarding businesses benefit from effective marketing. There are many different strategies to accomplish this. One way is through the use of search engine optimization (SEO). This makes your website more discoverable for customers who are searching online. Strong SEO includes building a robust Google My Business page, creating a website, and gathering reviews. Reviews play a large part in gaining new customers for your pet training, grooming, and boarding business. To learn more, see The Value of SEO.
Consider using apps like Wag and Rover to increase exposure to key markets. Marketing can lead to an increase in customer traffic at your pet training, grooming, and boarding business. This has a positive influence on the value of a pet training, grooming, and boarding business. Peak Business Valuation can help identify more effective marketing strategies during a valuation for a pet training, boarding, and grooming business.
Summary
It is crucial to consider success factors when valuing a pet training, grooming, and boarding business. Knowing the value of a pet training, grooming, and boarding business is important whether you are buying, selling, or expanding. Receiving a business valuation is a helpful way to understand the fair market value of a pet training, grooming, and boarding business. A business appraisal for a pet training, grooming, and boarding business also identifies opportunities to maximize your earnings.
Peak Business Valuation, business appraiser, is proficient at valuing pet training, grooming, and boarding businesses across the country. We are happy to answer any questions you have about the value of a pet training, grooming, and boarding business. Start today by scheduling a free consultation with Peak!
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