Teija Heikkila
1.877.690.DOGS (3647) tel
1.866.475.7486 fax
info@nationalkennelsales.com

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Services for business owners / sellers:??

You have worked hard and now you are ready to have more time to yourself.  You're wondering how much your business is worth, how boarding kennels, pet resorts or dog daycares are sold and whether anybody is buying in today's climate.

National Kennel Sales & Appraisals can handle your business sale from start to finish.  We are a full service brokerage; we provide the valuation, marketing, advertising, buyer pre-screening, negotiations, sales agreements, financing support, escrow, etc.  You run your business and we handle the selling of it.

We offer several options for sellers from full services to serving as an intermediary.  Below are the options available, please call us at 877 690 3647 or email our principal broker at teija@nationalkennelsales.com to discuss your specific situation.

Full Service Listing 

We will market your facility, secure a buyer, negotiate the sale and take you through the complete process until the check is in your bank.  This includes all the relevant steps in selling a business:

·      Business appraisal for Fair Market Value.

·      Marketing we create a Presentation Packet on your facility complete with pictures and detailed information about your operations, history, services, demographics, community, etc. We prepare professional financial statements that clearly demonstrate the financial benefits of owning your business.  We market your facility on global, national and local websites, directly to the pet industry as well as to our proprietary buyer database.  We bear all costs related to marketing your facility on local, national and global markets.

 ·    Buyer Pre-screening:  we pre-screen every prospective buyer before any information about your facility is presented.  This is to ensure that your confidential information is only presented to prospects capable of purchasing your facility. Every prospect is also required to sign a Non Disclosure Agreement.

 ·     Negotiations we handle all negotiations between you and the buyer with your full participation.

 ·     Purchase and Sale Agreements we will prepare preliminary documents regarding the sale for your attorney review and revision.  This saves you money and time. 

·      Financing We assist the buyer in obtaining financing; after all, if the buyer can't secure financing, you can't sell your business.  We are highly successful in obtaining financing, including SBA loans.

 ·     Due Diligence we manage the Due Diligence process in a professional and timely manner and assist in resolving any issues that might arise and threaten Closing.

·      Escrow / Closing Processwe serve as the 'cog' for all professionals involved in bringing the transaction to a successful close.  We handle and resolve issues, concerns and last minute challenges.  We thrive in keeping a deal together and bringing it to a close.

·     Expert advice you will have us as your expert advisor in all aspects of your sale.


Intermediary between Buyer and Seller

Sometimes the buyer and seller already know each other, or the business might be transferring from the owner to an employee, client, etc.  In these cases we can serve as intermediaries and consultants to facilitate the selling process. 

Our services include:

·   Business valuation for Fair Market Value

·   Facilitating negotiations between the parties

·    Assistance in obtaining financing 

·    Assistance in completing loan applications, including SBA programs

·    Preparation of Purchase and Sale Agreements for attorney review

·    Assistance with the Due Diligence phase

·    Assistance in resolving issues that come up

·    Structuring a smooth transition to minimize impact on clients

 Appraisal / Valuation of your facility

We can provide a complete, written business valuation for selling purposes.  You can use it to defend your price to a known buyer, or to use in another intended use.   For appraisal services, please click here.

Marketing

As a potential seller you want the most extensive marketing plan for your boarding kennel or pet resort without sacrificing confidentiality.  We understand that, and have well proven marketing venues at our disposable.   Our marketing tools include a complete Presentation Packet which is created to showcase your facility and the residence (if applicable).  These materials are provided only to buyers who have been pre-qualified and have signed a Non Disclosure Agreement.  

Buyers find us via:

·        Our website, www.nationalkennelsales.com and www.facebook.com/nationalkennelsales

·        Numerous 'businesses-for-sale' websites

·        Direct mail targeting our proprietary buyer database

·        Global web based media

·        Local print and web based media

·        MLS via International Business Brokers Association

Common FAQs regarding Selling a Kennel:

How can you sell my kennel if you are not in my state?

Most dog boarding kennels, pet resorts or dog daycares are NOT sold to a buyer in your immediate area. Due to our specialization, we have not only national, but global, advertising venues and reach buyers from anywhere.  A kennel will not sell on the local MLS.  We are also licensed real estate brokers in the states we have listings in. 

What creates value in my business?

There are lots of misconceptions about what enhances the value of a dog business. 

Value drivers are: 

·        History, longevity and philosophy of the business

·        Historical profitability of business

·        Location and geographic area

·        Reputation

·        Zoning / licensing issues

·        Staff

·        Market desirability

·        Future earnings potential / growth opportunities

Common misconceptions are:

·        Business is valued at 1 - 1.5 times its annual gross sales

·        Business is worth what I've put in it

·        I need $X.XX to sell / pay off debt / retire, etc.

Unfortunately none of the above mentioned points have relevance to the Fair Market Value of a business.  As business appraisers, we can establish the true value of your business and explain the strengths and weaknesses of your particular business in relation to the market place.

What are the steps involved in selling a boarding kennel?

To properly list, market, negotiate and close a sale successfully, the common steps in all transactions are:

1.     Appraise the value of the business and real estate

2.     Prepare marketing materials

3.     Market facility confidentially

4.     Pre-qualify Buyers and present facility to qualified prospects

5.     Handle negotiations for a successful Purchase and Sale Agreement

6.     Secure Financing for purchase

7.     Go through Due Diligence

8.     Handle and resolve any issues that come up during Due Diligence 

9.     Close the deal

10.   Celebrate!

These 10 steps include a multitude of sub-steps where, if not handled with skill, a deal can fall through at any time. 

I've heard that it's very hard to secure financing.  Is this true especially in today's strict lending environment?

Lack of financing is the #1 reason a seller is not able to sell their dog boarding facility, pet resort or dog daycare.  Most of the time this is the result of poor planning, lack of preparation and due Seller's lack of understanding of financing. During the appraisal process we analyze the transaction from all angles to determine how a sale can be financed and educate the Seller of their choices.  Financing has gotten somewhat tighter than in the past years; however, a solid business and a solid buyer will still find financing.  We have strong relationships with SBA lenders and excel in solving financing issues. For more information on SBA guaranteed loans, please visit: http://www.sba.gov/category/navigation-structure/loans-grants/small-business-loans/sba-loan-programs/7a-loan-program.

Please click here to read more about financing and what is required:  http://www.nationalkennelsales.com/financing-c12974.html

We are proud to say that we have never lost a sale strictly due to lack of financing.

How can I sell my facility without anybody knowing?

Confidentiality is of utmost importance to us.  We believe that it's in the seller's best interest to keep a pending sale confidential until closing; this prevents staff from leaving and clients from getting concerned.  Through blind advertising, buyer pre-screening and requiring every prospect to sign a Non Disclosure Agreement, we are able to sell your boarding kennel, pet resort or dog daycare while maintaining confidentiality.

Do you take on every listing?

No.  We analyze every boarding kennel, pet resort or dog daycare that is presented to us and only choose to list the ones that meet our criteria of  1) healthy, solid business  2) transaction can be financed  3) business is sellable.  Unfortunately we are frequently presented with animal care facilities that do not meet our criteria and we are not able to service those sellers.  We do, however, always provide advice to the seller in regards to their situation and how to prepare their business for a future sale.  We are in the business of selling facilities, not just listing them.

I'm not interested in 'carrying paper'; can I still sell my business?

For a seller to maximize their ability to sell they need to educate themselves, and consider, seller financing as part of the complete transaction.  This is especially important in today's lending climate and is not expected to change in the next few years.  Seller financing can be structured in a less risky manner and carries tax benefits with it as well.  We will educate you thoroughly about the pros and cons of considering this option and also encourage you to discuss it with an attorney and CPA.  If you are completely against providing even 10% financing on the total transaction, the likelihood of selling your business is slim.

How do you value a business?

We use approved, standard methods of business appraisal and follow standards established by Institute of Business Appraisers.  Our appraisal will stand up to scrutiny and will defend the established price to a buyer and his/her advisors.  We do not follow the outdated methods of 1 to 1.5 times annual gross as it does not allow for true representation of your facility's past and future earnings potential.  The appraisal industry has evolved greatly; more sophisticated and accurate methods exist today.

We use an income approach in most of our appraisals that truly reflects the economic benefit a business provides to its owner.   This method considers the complete business; its income generation ability, location, owner benefits, staff, customer loyalty, occupancy levels, growth, future potential, appearance, competitive advantage, etc. After establishing a suggested market value, we also perform a 'sanity check' that analyses the business from a lender's and buyer's perspective.  The business should be able to generate enough income to support the debt service on the established price, provide the new owner a decent salary and a return on their investment.   If the sanity check does not pencil out, the listing price needs to be adjusted accordingly. 

How long does it take to sell my business?

In today's climate, a realistic timeframe for selling a boarding kennel, pet resort or dog daycare from date of listing to closing is about 9-12 months.   Some kennels sell faster, some take the whole year.  If a kennel is on the market over 9-12 months, there is something inherently wrong with the listing.  The primary reasons a facility is listed for an extended period is:  it's overpricedand lack of financing.  If a facility is overpriced, it will simply not sell no matter how long it is marketed.  If a facility is not financeable, and the seller is not willing to provide financing, buyers will simply buy another facility with a realistic seller and / or lender financing in place.  Geographic location is not a primary driver for buyers, so they do shop around and look for a business that makes financial sense.  Unfortunately, most sellers, not understanding valuation methods, believe their facility is worth more than it really is, and they waste a lot of time marketing an overpriced business that will not secure a buyer.  Boarding kennels with defendable pricing structure and financing in place will sell in any economic environment.

Should I use a broker, or sell the business myself?

Few sellers understand the process of, nor have the expertise, to successfully sell a boarding kennel or dog daycare.  A seller might know their business well, but they do not how to sell one. Due to the complexity of the process, it takes specialized training and knowledge in a multitude of areas: business appraising, marketing, advertising, real estate, negotiations, drafting Purchase & Sale Agreements, Due Diligence, dealing with CPAs and attorneys and not to mention facilitating the emotional rollercoaster experienced by Sellers and Buyers.  Buyers are uncomfortable in dealing with the Seller directly and the Seller has no experience in moving a sale to a successful close.  Most FSBO kennels never sell.  They will sit on the market for a long time, become stale and the Seller has wasted time and money.  In residential house sales, statistics show that of the houses that actually are sold FSBO, they sold, on average, for 16% less and took twice as long as houses listed with an agent.  78% of sellers end up listing with an agent.  My assumption is that these statistics are even worse in the animal care industry.  This sale might be one of the most important financial decisions you'll ever make, a specialty broker is the best professional to ensure that the facility sells at its highest value in a timely manner.

 

Comparison of listing with National Kennel Sales &
Appraisals vs. FSBO vs. Realtor
NKS&A FSBO REALTOR
Local Marketing

YES

YES

YES

Nationwide Marketing

YES

YES

NO

Licensed Real Estate Broker

YES

NO

YES

Virtual Tour

YES

NO

YES

Expertise in the pet industry

YES

YES

NO

In-depth understanding of the business

YES

YES

NO

Confidential, 'blind' advertising

YES

NO

NO

Professional Presentation Packages

YES

NO

NO

Experts in financing animal facilities

YES

NO

NO

Trained in business appraisals

YES

NO

NO

Specialists in SBA lending

YES

NO

NO

Pre screening of buyers

YES

NO

NO

Pet industry target marketing

YES

NO

NO

Global marketing

YES

NO

NO

Drafting of Purchase and Sale Agreements

YES

NO

NO

Working with brokers nationwide

YES

NO

NO

Excellent negotation skills

YES

NO

NO

Understanding of buyer motives / behaviors

YES

NO

NO


 



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