Sales Timeline: Less than 4 months
Sale Price: $320k
Located in the Twin Cities, the owner of Whiskers to Tails Petsitting had proven to be a successful entrepreneur focused on providing care for animals in the home. As a former employee, the owner took over the business in 2019 and successfully operated it through the COVID-19 pandemic.
With a dedicated network of third-party contractors who cared for a loyal and robust client roster, Whiskers to Tails Petsitting was not only established but thriving.
When the owner decided to go back to school for a chance to change career paths, selling the business became top priority. By this point, the owner had spent years lining up the right mix of in-home, pet-sitting contractors, and had developed and maintained long-term relationships with pets and their owners across the Twin Cities Metro. As a result, finding the right buyer wasn’t just important — it was imperative.
Selling the business came with a few unique challenges, including:
Maintaining independent contractor relationships — The owner had developed strong relationships with third-party contractors who had earned the trust of many pet owners in the area. Keeping these relationships strong and secure was pivotal, so confidentiality around the sale was critical.
Duration of ownership — Because the owner was originally involved in the business as an employee, they had deep experience with the business — but selling after only four years of ownership had buyers questioning why the business was for sale so soon after purchase.
Emotional ties to the business — Because the owner worked as an employee at the business, and then went on to own and manage the business for several years, the emotional connection to the business — independent contractors, the clients and pets it served — was strong. The right buyer would need to prioritize the pet clientele and the relationships the seller had built.
High number of interested buyers — The nature of a pet-sitting business was attractive to a large number of buyers, many of whom came in with offers below the valuation.
Manager needs — While the seller was the owner and manager of the business, the buyer required a manager to help run the business. This required us to evaluate the sales price and seller financing terms to make it possible for the buyer to afford a salary to fulfill this need.
The buyer connected with Transworld at the very beginning of their journey to get assistance in selling the business. We used a multi-channel marketing strategy to reach potential buyers, including using local and national databases, our personal networks, and advertising online and offline.
Making a detail-oriented transaction quick and painless
With emotions often playing into transactions, there were a lot of details that the seller and buyer wanted to discuss before solidifying their decisions. This exchange of documentation was complex and required facilitation and support. Our agent worked to keep both sides of the table informed while streamlining information passing.
This facilitation paid off big for both the buyer and the seller, with the sale closing incredibly fast (under four months after first contact with the buyer) due to the deep understanding of the transaction terms.
Both the seller and the buyer walked away from the transaction table with their needs met.
For the seller, Whiskers to Tails Petsitting sold for a fair price with the confidence that the independent contractor relationships they had established would be honored.
And for the buyer, the seller financing was extended through two years to help them get established in the business.
The Key Takeaways
We helped Whiskers to Tails Petsitting successfully sell their operation by providing the following:
Fair valuation — By providing guidance to the seller regarding a fair value for the business, we helped the business sell faster and at a price that worked for both the buyer and seller.
Terms negotiations — To help ensure the transaction worked for both the buyer and the seller, we carefully worked through multiple purchase agreements to make sure that the terms met the expectations of both parties.
Buyer screening — The nature of this business attracted many interested buyers, many of whom came in with offers below the valuation, and some verbally expressed offers. We screened all buyers, presenting the seller with all offers while offering guidance on the best outcome for the seller.
Details, details, details — Both the buyer and the seller were detail-oriented, and sharing information was pivotal to the success of the transaction. We helped orchestrate the passing of information to keep the sale moving forward.
The Transworld Advantage
At Transworld, we do more than facilitate transactions. We are trusted business advisors who understand the changing world of business, its challenges, and its opportunities. We have the expertise, networks, and resources to help any business owner sell their business for the best price — helping them reach their goals.
When you choose Transworld as your partner, you can expect unwavering expertise and confidentiality every step of the way. Don't just take our word for it — experience the advantage of working with our team as your trusted business advisors.