Established Doggy Daycare with Boarding, Training & Grooming

Industry

Location

Business Broker

Situation

The business owner had acquired this doggy day care business in 2019 and several years later, due to demand, she added a nearby location. The proximity of the two locations offered great benefits to its customers and to operating the business, since resources could be shared and customers could easily be accommodated.

The owner had two young children and due to the health of one of her children, she decided it was time to sell. She had previously put in place a management structure to run the day-to-day operations, but with increased demands on her time she felt the business would be better managed by a new owner. She knew BayState Business Brokers had expertise in successfully brokering the sale of doggy day care businesses, so she reached out for their assistance. Jake Levy was the business broker who brokered this sale from start to finish.

BayState Business Brokers’ Approach

Business Broker Levy’s strategy for bringing this business to market was to cast a wide net. With two established locations and room for growth, he expected this listing would be of interest to individuals, strategic buyers and private equity firms. His instincts were correct as he secured interest from all three categories of buyers.

The two locations attracted great interest from prospective buyers with their two unique target audiences combined with the operational efficiencies. With two locations, came two landlords for Levy to handle and prospective buyers to meet with and negotiate the terms of each lease.

After working through offers from several buyers, a private equity firm from Florida emerged as the eventual buyer. They had acquired a similar business in Boston and were attracted to the locations in the Providence, RI area. 

With the recent breakdown in negotiations on the leases with previous buyers, Levy was focused on guiding the deal to close. Fortunately, the private equity firm had the patience to let the negotiations with the landlords play out, as that was the primary hurdle to close.

Results

Business Broker Levy successfully quarterbacked the process to close while continuing to reassure the seller that in this case, the third time was truly the charm. Her business was attractive to the private equity firm, and they didn’t want to lose the deal over lease assignments.

With the sale complete, the seller had the peace of mind she needed. She could focus on her family while the private equity firm had successfully achieved its goal of expanding its portfolio in a highly attractive market.