7 Steps to Sell a Dog Kennel Business

According to IBISWorld, the pet grooming and boarding industry’s revenue increased by 2.8 percent in the United States from 2018 to 2023 with profit margins reaching 11.5 percent in 2023. With an increase in industry revenue, increasing disposable income, and increased pet ownership, 2023 is a fantastic time to sell a dog kennel or dog boarding business. If you’re thinking about “bow-wowing” out of the dog kennel business, take advantage of Sunbelt Business Brokers’ latest blog, “7 Steps to Sell a Dog Kennel Business.”

How to Sell a Dog Kennel Business

To successfully sell a dog kennel business for top dollar and in optimal time, utilize the following steps.

1) Develop an Exit Strategy

Preparation is essential when it comes to selling a dog kennel. Ensure you have an exit strategy in a place detailing how you, the business owner, will exit your business. During the exit planning process, there are a number questions to consider such as:

• Will you sell your business to an employee, family member or outside party?
• When do you plan to exit the business?
• Do your retirement plans depend on the sale of the dog kennel?
• Does the business have set operating procedures?
• Are your employees going to continue working for your dog kennel under new ownership? Are there employee agreements in place?
• How will the ownership transition process work?

All of these must-ask questions must be addressed during the development of an exit strategy. Consider contacting a business broker or advisor for help creating a personalized exit strategy.

2) Get a Valuation

To determine the value of your dog kennel, it is best to hire a third party to perform a business valuation. There are a number of ways to calculate the value of a dog kennel business ranging from income approach to market approach. A professional business broker or business appraiser understands the industry and the local dog kennel and boarding market. They will be able to accurately value your dog kennel, which will help you determine asking price.

3) Organize Your Books

Work with your lawyer and accountant to organize all of your financial and legal documents. A potential buyer will be interested in seeing everything from financial statements, taxes, and operations documentation to leases, contracts, and more. Ensure you are well equipped to answer any questions a potential buyer might ask about your business.

4) Address Weaknesses and Improve

You don’t want to give potential buyers any reason to lose interest in your dog kennel. Commit to an actionable improvement plan prior to listing your dog kennel for sale. Address any weaknesses you see in your operations, marketing, pricing, equipment, or facility. Set weekly goals to ensure you are actively improving your business.

5) Grow Your Clientele Base

Before listing your dog kennel for sale, work towards expanding your clientele base. The stronger your kennel’s sales and occupancy rates, the more valuable your dog kennel will be to potential buyers.

According to the 2017-2018 APPA National Pet Owners Survey, nearly 60.2 million American households own a dog. With such an enormous population of dog owners, there are surely untapped markets in your area that could utilize your dog kennel services.

6) Clean and Assess the Facility and Equipment

When furry creatures are part of your daily business, things tend to get a little messy. Be sure to get your facility professionally cleaned before buyers visit. If you own the facility, consider getting a pre-sale commercial property inspection. Any major issues that arise during the inspection should be addressed prior to listing the business for sale.

If you plan to sell the dog kennel and boarding equipment to the buyer, ensure it is clean and in good working condition.

7) Hire a Business Broker

Selling a dog kennel can be a stressful process. While your business is for sale, it is vital to keep operations running smoothly and to maintain revenue. Hiring a business broker will not only enable you to sell your business for top dollar and in optimal time, but it will also allow you to remain focused on your business throughout the sales process.

If you’re ready to sell a dog kennel business, contact a Sunbelt Business Brokers office near you today. Our business brokers have years of experience matching sellers with interested buyers and are ready to guide you through the business transaction process.