Premium Pet Food & Treats
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.
- 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
- List Price: $395,000
- Gross Sales:
- 2018: $501,735
- Cash Flow:
- 2017-18 Average: $125,160
- 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
- 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
- Create additional product lines
- Work with more distributors
- Reach out to additional retailers
- Consider big box retail
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 2-year average cash flow was used with a prescribed multiple is 3.16. With this information, the computation is as follows:
$125,160 x 3.16 = $395,506
The fair market value found above positions the business list price at $395,000.
Purchase Price: $395,000
Buyer Down Payment: $250,000
Earn Out: $145,000
Seller earn-out is over three years.
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.
|Document Title / Description|
This folder is empty.
Access to this Deal Room is restricted
Would you like to access the deal room?Yes, please
Already have an account? Log in here.
Print, sign and send to:210 N 78th St. 2nd Floor
Omaha, NE 68114
Or fax to: