How to Decide Who to Sell Your Dog Daycare To

So, you are ready to sell your dog daycare. You have built a thriving business in your community, and now it is time to move on to the next adventure. Whether that means focusing on a new investment, beginning retirement, or simply needing a life change, selling your dog business is an exciting opportunity. However, before you can start this next phase of life there is just one question: who to sell your business to?

Multiple Dog Boarding Business Offers

Maybe you have received multiple offers on your dog boarding business or dog daycare. While this is a good problem to have, it can make deciding who to sell to difficult…and there is more to consider than just the price. Other aspects such as the buyer’s reputation and intentions will impact your business forever. In short, there are two things to weigh: the financial offer, and your company’s lasting legacy. Price is much easier to evaluate. But how do you know if you are selling your dog business to someone that will protect—or even expand—your legacy?

Selling Your Dog Boarding Business to Private Equity

An offer for your dog daycare or boarding business from a private equity firm has a lot of potential. Private equity can supply a business with funding to accomplish goals, including the owner’s exit. In other words, the right private equity owners can give your company more financial security, as well as bring in opportunities for future growth. But just as great financial resources can uplift your company, they also have the power to harm it. And that’s where choosing the right buyer is crucial for your company’s future. 

So, what qualities should you evaluate in your prospective buyer? We will explore this question in the sections below.

Private Equity’s Focus on Holding Period

Usually, private equity firms have a set holding period. What this means is that the firm acquires companies with the plan of growing them and then flipping them, typically within three to five years. In this way, the private equity fund investors make a return on their investment by the time the company is sold—often to a bigger private equity firm or another company in the field. 

In theory, success for the firm means selling your company for a higher price than they bought it for, regardless of how else your company is changed during ownership. This can turn into an overemphasis on cost-cutting or a grow-at-all-costs mindset, harming the well-being of your company just to make a short-term return on investment. But the question remains: could there be another model of acquisition that has your company’s long-term best interests at heart?

A New Model: Buying with No Intention to Sell

We are embracing a new model crafted for long-term alignment and success: a truly open-ended holding period. This model puts your company’s best interests at the center of the acquisition process because we view your company the same way that you do: as a long-term asset that we want to build for life.

At Argos, we have no “investment timeline” and intend to work with your company for life. That means our goals are long-term, lasting growth, so your company can continue to thrive and make a positive impact in your community. When choosing who to sell your kennel to, asking about your buyer’s intended hold period may shed some light on how they view your company. 

Employee Retention

Investigating a buyer’s previous or current companies is important, as well. Do they keep all employees onboard post-acquisition? Is there a high employee turnover rate? If so, that could be a sign that your company’s current employees may not remain under the new ownership. This also signifies a greater change in your company’s identity and culture, and if you liked what you were building towards, a large change may not be what you want. 

At Argos, we look for businesses with a great team already in place. This allows us to intentionally keep all our companies’ managers and employees onboard post-acquisition. Simply put, our approach is to enhance what you have already created by supporting your current team. 

Operational Improvements

Most potential acquirers are working towards company growth, and so identifying if the prospective buyer’s improvement ideas align with your own is important. There are multiple avenues to increase the value of your company, from focusing on increasing customer satisfaction to pricing adjustments to technology improvements. 

Argos’ end goal is to provide top-quality care for your community’s pets and pet parents. So when we acquire a dog boarding business, we focus on innovative ways to give your employees more time with both four and two legged customers. For example, we incorporate a software package that reduces time spent on non-core administrative tasks, adding time back to your team’s day. We also have our regional Argos support team that is always there to support our locations and free up your location’s managers to do the best job possible.

Closing Ability 

However, all the ways your interested buyer promises to improve your company mean nothing without a proven track record. Has this firm delivered with companies similar to yours before? Are they an honest and committed acquirer? Researching the firm’s portfolio companies or representative investments helps to answer this question. If the firm has past or ongoing successful investments, then that signifies they have the necessary resources and experience to close the deal.

Sell Your Company While Maintaining Your Legacy

In sum, who to sell your dog daycare or boarding business to is a multi-faceted, complex decision. You don’t have to go through the process alone. Contact us at woof@argospartnersholdings.com for a free valuation, so you can take your next steps with confidence.