Acquiring Additional Pet Care Locations as an Established Operator
Owners who run a successful boarding, daycare or grooming business often hear from pet owners who wish there were a location closer to them, or from nearby owners ready to sell. Acquiring an existing business can be a practical way to grow, bringing an established base of pet owners, trained staff and a facility already set up for animals. Growing to multiple pet care locations can strengthen a business, but each additional location adds debt, management demands and responsibility for more animals.
This article is limited to established pet care operators acquiring additional existing, operating non-veterinary businesses. It does not address opening new locations or building new facilities. It is not legal, regulatory, zoning, tax or financial advice.
Why Established Operators Acquire Additional Businesses
- Adding cash flow from a business with an existing base of pet owners
- Serving more neighborhoods or a nearby market
- Adding services, for example acquiring a grooming salon to complement daycare
- Sharing management, purchasing, training and administrative functions
- Providing a buyer for nearby owners who are ready to retire
Evaluating the Next Location
- Documented cash flow and revenue by service
- Staff experience, tenure and likelihood of staying
- Reputation, reviews and incident history
- Licenses and permits, where required, and inspection history
- Facility condition and permitted capacity, which may depend on licenses, zoning, facility configuration and local rules
- Lease terms or property condition
- How well the business’s culture and care standards match yours
Our pet care business due diligence checklist covers these areas in detail, and our guide to the pet care facility lease explains location considerations.
Integrating Without Disrupting Care
Pet owners chose the acquired business for its people and its routine. Many operators keep familiar staff and practices in place at first and introduce changes gradually, such as booking systems, pricing or policies. Consistent safety and sanitation standards across locations are essential.
Operating Multiple Locations
- Management: a capable manager at each location and clear reporting
- Staffing: scheduling, training and the ability to share staff where practical
- Standards: consistent intake, supervision and safety practices suited to each facility
- Systems: booking and reporting systems that allow oversight across locations
- Licensing: each location may require its own licenses or permits, depending on the jurisdiction
Financing an Additional Location
Established operators have an advantage because lenders can review their track record. Lenders will typically evaluate:
- The target business’s documented cash flow
- The operator’s existing financial statements and debt
- Combined cash flow and ability to support all debt payments
- The lease or property for the new location
- Liquidity after closing
Depending on the deal, financing options may include SBA loans, subject to eligibility, as explained in our guide to SBA loans for pet care businesses, or conventional business loans for qualified borrowers. Where an operator is purchasing the property along with an existing business, see our page on pet care facility real estate financing. Eligibility and terms vary by lender, program and transaction.
Entity Structure
Some operators hold each location in a separate company; others combine them. Structure affects liability, taxes, licensing and how lenders take collateral or guarantees. Review these choices with legal and tax advisors.
Pacing Growth
Adding locations too quickly can strain management, staff and cash reserves. Many operators stabilize each acquisition before pursuing the next.
Growing Responsibly
Acquiring additional locations works best when existing operations are stable, the target is evaluated carefully, care standards are maintained and financing fits combined cash flow. No acquisition can guarantee results.
US Professional Funding works with established pet care operators financing the acquisition of additional existing businesses. Learn more about our pet care facility acquisition financing.
