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Exotic Pet Food & Treats



  • Price

  • Revenue

  • Profit Margin

  • Location
    Boston, MA - Relocatable

  • Service Area
    88% National, 12% International

  • Inventory

  • Employees
    2 FT, 1 PT: all shared with other business

  • Lease
    2 Locations: MA: 5,000 sq./ft. warehouse. CA: 5,000 sq. ft. warehouse

  • Intangible Assets
    Great customer interest in the products, unique offerings with less competition, all products are sourced and in production, unique customer base

With a premium protein line-up featuring canned & jerked kangaroo, this company is intent on manufacturing high-quality and healthy food for dogs and cats. With two warehouse locations on opposite coasts, this business sells directly to 109 individual retailers and works with 9 distributors (who sell to 5,000+ independent retailers across the US and Canada). Specializing in filler-free and exotic pet foods, products include dry and wet food as well as jerky and freeze-dried treats. Unique offerings position this business on the up-and-coming demands of the pet food industry.

With ingredient sourcing from around the globe, manufacturers located in Canada, Australia, New Zealand, and the United States have access to high-quality proteins and carefully designed recipes offering high nutritional value.  

Employees are currently shared with the owner’s non-competing business. Who remains with the company is negotiable but considering that sales and manufacturing are done outside of the premises, minor operational staff should be easy to acquire.  The owner currently spends an estimated 15% of working time on this company, demonstrating that growth could be exponential if a buyer were to dedicate further time to the business.  Additional growth can be found in bringing a sales and marketing staff in house to reduce costs paid to the representation firm.   

Business Highlights

  • Years in Business: 4
  • Service Area: 88% National, 12% International
  • Distributors:  9
  • Number of Direct Accounts: 109
  • Products: Cat food (wet), dog food (dry and wet), and cat and dog treats (jerky and freeze dried)
  • Lease Information: 2 Locations: MA: 5,000 sq./ft. warehouse. CA: 5,000 sq. ft. warehouse
  • Average Sale: $3,000 to distributors; $1,000 to stores
  • Employees: 2 FT, 1 PT: all shared with other business
  • Hours: CA: 8-4:30, MA: 9-5
  • Seller Training Period: 90 Days
  • Growth Opportunities: Create additional product lines, work with more distributors, reach out to additional retailers, consider big box retail
  • Current Owner’s Responsibilities: Passively Owned; about 15% of time spent on this business

Financial Highlights

  • List Price: $790,000
  • Gross Sales:
    • 2017: $628,029
    • 2016: $559,996
    • 2015: $238,749
  • Cash Flow:
    • 2017: $213,475
  • Assets Included in Purchase*
    • A/R: $112,000
    • Backlog:  $26,000
    • Inventory: $280,000
    • Pipeline: $125,000-$350,000
    • Intangible Assets: Great customer interest in the products, unique offerings with less competition, all products are sourced and in production, unique customer base

*amounts may vary

Cash Flow Analysis

Description of Financial StatementP&L Statement
Jan. - Nov.
P&L StatementP&L StatementP&L StatementNotes
GROSS SALES$474,090$628,029$559,996$238,749
Net Income Shown on Financial Statement$157,076$225,975$-90,627$-68,174
Travel$0$0$9,878$020% is personal
Rent$-27,500$-12,500$-22,500$-22,500Ongoing rent is $2,500/month
TOTAL ADDBACKS$-27,500$-12,500$-12,622$-22,500
Seller's Cash Flow = Total Addbacks + Net Income$129,576$213,475$-103,249$-90,674
Profit Margin27.33 %33.99 %-18.44 %-37.97 %
  • Profit margin in 2017: 34%!
  • There was a bit of fluctuation in sales in 2018 due to a manufacturing issue that arose, but after securing a new cannery in Canada, the issue has been resolved and growth can continue. 



  • Wet food
  • Freeze-dried treats


  • Dry food
  • Wet food
  • Freeze-dried treats
  • Jerky treats


Total Employees: 3

  • 2 FT
  • 1 PT
  • All shared with the owner’s non-competing other business

Growth Opportunities

  • Create additional product lines 
  • Work with more distributors 
  • Reach out to additional retailers 
  • Consider big box retail

Valuation Details

The Firm Business Brokerage used a cash flow valuation methodology to determine the purchase price of the business. 

The formula used is as follows:

Cash Flow       x          Prescribed Multiple     =          Fair Market Value

Cash flow is the sum of business net income plus any owner perks and any non-onward going expenses.

A multiple is prescribed by a 20 question, 100-point parameter ranking system that is used to analyze the current business health. Each question is based on a scale from 1 to 5: 1 being low, 2 below average, 3 average, 4 above average, 5 high. The average of the responses sum is the business’ prescribed multiple.

For this business, a 2017 cash flow was used with a prescribed multiple is 3.  With this information, the computation is as follows:

$213,475         x          3     =          $789,858

The fair market value found above positions the business list price at $790,000.

Funding Example

Purchase Price:                             $790,000

15% Buyer Down Payment:          $118,500

15% Earn Out:                               $118,500

70% Bank Loan:                            $553,000

Seller financing 5-year term at a rate of 4.50% equals a monthly loan payment of $2,209.

Bank loan 8-year term at a rate of 6% equals a monthly loan payment of $7,267.

After business expenses and loan payments, a buyer with a 15% down payment of $118,500 would retain a profit of $99,758, which results in a 84% return on investment in the first year.

A lender is required to have a minimum 1.5 coverage ratio for any business loans extended. At a proposed purchase price of $790,000 with the terms listed above, the coverage ratio is 1.88. 

Please note that the decision of whether to extend a loan on any sale belongs to the bank, and this document does not guarantee specific terms or verify that financing is available. 

Purchase Price:



Bank Loan Needed: $


Funding Details


Offer Price: $

% Buyer Cash Down at Closing: $

% Seller Carry Back via Promissory Note: $

year term at a rate of %

% of Purchase Price secured by Buyer and Seller

Total Bank Loan Need: $

% of Purchase Price

Desired Loan Type:

Desired Bank Terms: year term at a rate of %

Total Business Assets, Inventory, and A/R: $

Total Undercollateralized Loan: $

Loan Payments

Monthly Payment to Bank: $
Yearly Payment to Bank: $
Monthly Payment to Seller: $
Yearly Payment to Seller: $
Total Monthly Debt Service: $
Total Yearly Debt Service: $


Fixed Charge Coverage Ratio

The bank will require a minimum ratio of 1.5 to be lendable.

Cash Flow:
2017 Cash Flow
Annual Debt Service: $

Buyer's Net Operating Income (NOI)

The amount of money the Buyer will retain as profit.

Cash Flow:
2017 Cash Flow
Annual Debt Service: -$

Buyer's Return on Investment (ROI)

The rate of return on the Buyer's down payment.

Down Payment: $
ROI: %


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210 N 78th St. 2nd Floor
Omaha, NE 68114

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