Selling a kennel or cattery business can be a complex process, but with support from professional business sales brokers you stand a better chance of achieving your goals and objectives.
Selling My Business can help you develop and implement a comprehensive plan for a dog kennel or cattery sale, taking account of your main objectives and any challenges you might face.
This could be something specific to your business, such as a staffing issue, or a general problem that your sector faces. So let’s look at some common problems experienced by kennel and cattery business owners, and then identify the steps to a successful sale.
Disruptive business models
An increase in the popularity of services that involve looking after pets in their own home or in the home of the provider, as well as dog-walking services, challenges the status quo for ‘traditional’ kennels and catteries.
The benefits of having a pet looked after in the pet-owner’s home makes it difficult for kennel and cattery businesses to compete unless they provide luxury accommodation for the animals, or become/rebrand as a destination venue – offering ‘dog holidays’ for example.
Running a kennel or cattery requires constant involvement by the owner, and potentially being on-call 24 hours a day. If not present in person, they must appoint a trained manager to care for the pets and ensure their safety, so incurring greater cost.
Management of pet waste is a key issue for kennel and cattery business owners who need to be aware of the potential environmental impact of wrongful disposal. Waste must be carefully managed and disposed of, with another environmental issue being the noise levels emanating from the business, which could create a problem for neighbours and the local community.
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This is a brief rundown of the business sale process to provide an idea of what is required.
It’s advisable to plan an exit route from the business at least a year in advance. Some business owners develop an exit strategy as part of the original business purchase, but allowing plenty of time to address adverse issues is key.
Obtaining professional input
Legal and professional accountancy assistance is a must when selling a business, and business sales brokers can also smooth the sale process using their technical knowledge and sector experience to protect the business owner’s investment. Selling My Business has over £500 million worth of successful completions in the last 10 years, and can provide expert advice at every stage.
Releasing the initial information to interested parties
An information memorandum is sent to anyone showing an interest in purchasing. This includes financial data, and relevant information about your business including your reasons for selling the kennels/cattery.
Negotiations and buyer due diligence
When a serious buyer has been identified, negotiations get underway and if the sale progresses a Letter of Intent is drawn up that reflects the results. The buyer will need to undertake a period of due diligence to check all the information provided is accurate.
Signing of the sales agreement consolidates the deal, which might include warranties and indemnities to protect the purchaser. You may be required to participate in the running of the business for a specified period, for example, to smooth the transition of ownership.
For more information on selling a kennel or cattery business, please contact one of our experts at Selling My Business. We have specific sector experience, and can assist you throughout the sales process.
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