Dog Day Care Services represent a rapidly growing sector as demand for couples and families who are passionate about taking care of their canine family member. Typically customers of dog daycare centres are pre-child couples aged 20-35 and post-child empty nesters aged 50+. Their dogs are the pride and joy of their lives and they invest in their happiness through services such as dog daycare, as well as premium foods and toys.
This Dog Day Care business, based in Melbourne’s East, consists of two centres which provide high quality and professional daycare, grooming and related services, including a pet taxi service and shops stocked with quality dog food and accessories. Each location has a loyal and active customer base with regular and growing customers. Opportunities exist for adding more services such as walking, pet-sitting, dog training and overnight stays. The owner has ambitious growth plans for the business, and is seeking an equity partner to support these growth plans. The share of business and value of that share will be determined through negotiation. The owner is flexible on investment terms and value.
A first-mover advantage exists for this business through strategic investment into opening new stores. Once set up the business can establish a strong position against any potential competition. There is capacity that would allow the opening or acquiring of two new stores every 12 months with the right level of capital. The existing owner now has extensive experience in establishing successful Dog Day Care centres as he has established proven processes to manage the time from signed lease to open doors is less than 5 months. Under the current model, each new and existing centre is capable of earning $1 million per annum in revenue with 20%–30% EBITDA once at 80% capacity. 80% capacity has historically been reached after 2 years of trading.
Wollermann and Associates have been appointed to manage the communication process for the raising of capital, or strategic acquisition of “the business”, and as such represents the interests of the Hop & Scotch, shareholders in dealing with prospective purchasers relating to the capital raising process. Further detailed information and access to the business can be provided to those parties who have a genuine interest to proceed with an acquisition of this nature.