AdviCoach Jerry Baltus Helps Dog Day Care Franchise Owner Sell Her Profitable Business

AdviCoach Jerry Baltus Helps Dog Day Care Franchise Owner Sell Her Profitable Business

When an owner of a dog day care franchise in Wisconsin turned to AdviCoach business coach Jerry Baltus to help her sell her business, Jerry was excited to get started because the business had great existing financials.

Since opening in 2008, the dog day care company had experienced double digit sales growth percentages each year it was in business. Of the eight franchise locations that opened in the same year, this business is one of only three that surpassed $250,000 in sales in 2012.This was accomplished by steadily growing sales in all of the major service sectors of the business, which included dog day care, grooming, retail and overnight services.

Having met Jerry through a Wisconsin Chamber of Commerce networking group, the franchise owner agreed that working with a coach would be the right way for her to prepare for and execute a business sale.

The Problem:
After a successful 5-year run after launching her franchise dog day care business, Jerry’s client had created a nice cash flow and the beginnings of a substantial value for her business. However, at 60 years of age, she felt it was time to begin the process of finding a buyer so that she could pursue other business and personal interests. Although she had launched a successful business, she didn’t know how to go about the process of an exit strategy and an actual sale of the business.

The Solution:
Jerry followed a typical exit strategy approach when preparing this business owner to sell her business, as follows:

  • They estimated the value of the business and made sure financial reports supported the business valuation.
  • They created a strategic plan that not only pointed out the near-term direction of the business, but more importantly demonstrated to a buyer that the business had a bright future with opportunities for a new owner to reach even higher levels of success.
  • They put together a prospectus for the business that gave a strong executive overview of the opportunity. The Prospectus made strong use of the Sellability Score results of the business where its strengths contributed to the value.
  • They developed a marketing approach for the business and created a short list of potential buyers or buyer profiles.

Throughout the process, they continued to take care of the business to keep its performance on an upward track to stay close to the financial projections used as part of the valuation.

The Result:
Fifteen months into the process, the client has two qualified, potential buyers, one who has recently submitted a Letter of Intent to purchase pending financing approval. The business has continued to grow through the process, with sales being slightly behind projections, but earnings before interest, taxes, depreciation and amortization (EBITDA) nearly equaling projections.

Upon successful completion of a sale, the client will be able to pay off her remaining business debt, and have enough money to fund her other business and personal interests.

For more information or guidance about how you can go about selling your business, visit AdviCoach today.

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