How to Sell a Pet Resort: Key Steps to Maximize Value and Attract Buyers

Selling a pet resort is a significant undertaking and preparing your business for sale makes a world of difference in the final outcome. Buyers are looking for well-run operations with clear financials, growth potential and a strong management team.

Here’s a step-by-step guide to help you get your pet resort ready for the market and maximize its value.

1. Clean Up Your Financials

Clear, organized financial records are one of the first things potential buyers will scrutinize. A well-documented financial history not only gives buyers confidence but also streamlines the due diligence process.

• Organize Your Records: Ensure your profit and loss statements, tax returns, and balance sheets are up to date and error-free.
• Separate Personal Expenses: If personal expenses are mixed into your business records, clean them up to give a true picture of profitability.
• Work with a Professional at PET|VET: We can analyze and clean up financials to present your financials in the best light and from an investor’s perspective.

Why It Matters: Buyers pay more when they can clearly see the profitability and financial health of your business. After all, a buyer is buying cash flow!

2. Strengthen EBITDA

EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) is a key metric buyers use to evaluate a business profitability. Strengthening your EBITDA can significantly increase the value of your pet resort.

• Increase Revenue Streams: Consider adding profitable services such as enrichment, grooming or training to boost revenues.
• Cut Unnecessary Costs: Evaluate operational expenses and eliminate inefficiencies without compromising service quality.  Labor cost is the main expense driver in the pet care industry and should be carefully analyzed and managed.
• Focus on Recurring Revenue: Programs like memberships, subscriptions, or long-term boarding contracts provide steady income that buyers value.

Why It Matters: A higher EBITDA not only improves your resort’s valuation but also signals a strong and sustainable business.  The higher the EBITDA, the stronger the offer!

3. Get a Professional Business Analysis

Understanding the market value of your pet resort is crucial when planning your sale. A professional valuation provides a realistic assessment of what buyers might be willing to pay.

• Engage an Industry Specialist: Contact PET|VET for accurate valuation insights.
• Consider Key Factors: Location, facilities, customer base, reputation, and growth potential all contribute to your resort’s value.
• Benchmark Against Competitors: A market analysis will help you position your resort competitively within the industry.

Why It Matters: Knowing your business value helps you set realistic expectations and time your exit strategy.

4. Strengthen Your Management Team

A strong and capable management team is a major selling point for buyers. It reduces reliance on the owner and demonstrates that the business can run smoothly after the sale.

• Delegate Responsibilities: Gradually transfer day-to-day operations to your management team to show the business can operate independently.
• Invest in Training: Provide your team with the training and tools needed to excel in their roles and ensure consistency in operations.
• Document Systems and Processes: Clear documentation of standard operating procedures (SOPs) makes it easier for a new owner to take over.

Why It Matters: Buyers want assurance that the business can thrive without the current owner’s direct involvement.  The owner of a pet resort is the highest risk factor to a buyer.

The Bottom Line

Selling your pet resort is not just about listing it on the market—it’s about preparing it to attract the right buyer at the right price. By cleaning up your financials, strengthening EBITDA, obtaining a professional valuation, and building a strong management team, you can significantly increase the value of your business and make the sale process smoother at the highest price possible.

Taking the time to prepare now can pay off immensely when it’s time to close the deal.

PET|VET represents sellers only – I only have your best interest in mind. You can reach me directly at teija@petvetsales.com.

Teija Heikkilä, CEO and Top Broker for the Pet Care Industry