Mobile Pet Grooming Business in South Denver Metro, In Booming Area, Many Ways to Grow

Financial & Assets Details

About the Business

Business Description

MOBILE PET GROOMING SOUTH DENVER METRO AREA

Growing pet grooming company that has strong recurring revenues

Their location is one of the fastest growing areas in the country and ranked #1 in Colorado

The 2022 revenues were 451,196 with earnings of 141,549. That is a 31.4% profit margin. This is just one of the many reasons this company is worth its sales price of 410K. Other reasons include the current value of all assets made up almost entirely of 3 late model fully wrapped and custom built out vans is estimated to be 220K which is more than 50% of the sales price and that it is easy to find employees since they are well paid and love their jobs.

There are many ways to grow this business: Since they have a 2 ½ week waiting list for new customers, the owner is overdue to add another van. The current profit margin, multiple ways to grow, high value of easy to liquidate assets, waiting list, and ease to find skilled labor compares favorably to traditional business models. The owner is 100% absentee and relies on a manager who works 40 hours a week. The new owner will almost certainly take over the manager.

The owner is selling because he has a much larger business that is taking over 50 hours a week of his time. He has 5 full-time mostly long-term and loyal employees.

He will agree to traditional reps and indemnifications in the closing paperwork. This is also a very easy business to transition and to teach a new owner.
This business has a high percentage of customers on regular schedules who use auto withdrawals from their bank accounts creating a high percentage of recurring revenues from “regulars”. This means that this business will not change the day after the closing.

This is a fun business to own. The business is steadily growing and always has been with a short-term exception when Covid had a negative impact from March of 2020 to May of 2021.

The business only had 16K in advertising expense in 2022 which is only 3 1/2% of revenues. The new owner can increase their advertising spending to generate more leads. Based on their fast growth, profitability, and ease of finding employees, the new owner will likely increase their radius of business, add van(s), and open other locations.

The Seller has set up the manager in his house. The employees do the laundry and clean/stock the vans in the garage of owners home, then drive the vans to storage. The manager orders new supplies, schedules appointments, takes care of accounting/managing of funds, and hires and fires employees. The new owner will most likely set up in a storage facility with services that will serve as the future staging area post closing.

The sales price is 410K which is only 2.9 times the earnings. This is an asset sale which means that she will be keeping her cash and paying off all debts at or before the closing. This business should qualify for an SBA loan. If the Buyer would like to avoid the SBA, 2 of the vans have balances totaling approximately 140K that the new owner may chose to take over reducing the out of pocket expense at the closing.

Growth & Expansion

The business only had 16K in advertising expense in 2022 which is only 3 1/2% of revenues. The new owner can increase their advertising spending to generate more leads. Based on their fast growth, profitability, and ease of finding employees, the new owner will likely increase their radius of business, add van(s), and open other locations.

Location Details:

The Seller has set up the manager in his house. The employees do the laundry and clean/stock the vans in the garage of owners home, then drive the vans to storage. The manager orders new supplies, schedules appointments, takes care of accounting/managing of funds, and hires and fires employees. The new owner will most likely set up in a storage facility with services that will serve as the future staging area post closing.

Support & Training

He will agree to traditional reps and indemnifications in the closing paperwork. This is also a very easy business to transition and to teach a new owner.

Reason for Selling:

The owner is selling because he has a much larger business that is taking over 50 hours a week of his time.