Comparison of Sale Proceeds
WHY STANDALONE is WORTH less
Small businesses come with significant risk. Any single event, such as a fire, flood, outbreak, manager loss, etc. can turn a profitable business into a losing business overnight. As such, buyers coming into the market have to price your business accordingly, requiring a faster return on their investment to cover upfront costs. Further, as most buyers require some form of bank financing, there are limits to what banks will lend to a buyer for a small business.
Why bundled is worth more
We combine multiple kennels to form one bigger company, significantly decreasing the risk of the buyer. In other words, if a buyer owns 30 kennel locations and one has a catastrophic event, (i) they have the financial means necessary to weather the storm and rebuild that one kennel, and (ii) that kennel represents just about 3% of their total business rather than 100%. In addition, we are working with large, well backed buyers that have more money and lower return requirements.