Healthcare, Education & Personal Services · Buyer guide

Buying a Pet Boarding & Daycare business

Published · Reviewed by The Diligence Standard Team · Updated

a Pet Boarding & Daycare can look attractive on a summary P&L while the operating details underneath it change the cash flow, transferability and capital a buyer will actually own. Diligence should connect the reported earnings to the business-specific drivers that create them.

How the business works

Occupancy, daily rate, labor, capacity, licensing, property/lease and repeat customers drive value.

Risks to test

  • Facility CapEx
  • Licensing/zoning
  • Labor
  • Seasonality/holiday concentration
  • Liability/incidents
  • Owner reputation

Evidence to request and reconcile

  • Booking/occupancy
  • Rate history
  • Payroll
  • Facility/lease
  • Licenses/inspections
  • Incident records

Decision questions

  • What is normalized occupancy outside holidays?
  • What facility CapEx is due?
  • What incidents/claims exist?
  • Can staffing support capacity?
  • Do zoning/licenses transfer?