Unleashing Success: Buying a Kennel or Cattery
The pet care industry has seen remarkable growth in recent years, with pet boarding services forming a crucial part of this thriving market. According to the Pet Food Manufacturers’ Association (PFMA) 2024 Annual Report, approximately 13.5 million dogs and 12.5 million cats lived in UK households, representing 36% and 29% of homes with pets, respectively.
For animal lovers with entrepreneurial ambitions, purchasing an existing kennel or cattery business offers a rewarding investment opportunity. This guide explores the essential considerations for making an informed purchase.
Lockdown, Pets and the Aftermath
The kennels and catteries industry has been undergoing fast change. These types of businesses – very often supporting both dogs and cats – had a difficult time during COVID, when few people went abroad. However, because many people bought pets during that period, and now are taking foreign holidays, demand for pet boarding businesses has gone through the roof.
Nearly a quarter of pet owners in Britain choose never to take their pets along when traveling, possibly because they worry about the complexities involved or prefer to maintain a consistent environment for their animals.
Furthermore, pet boarding businesses are the chosen method of keeping their pets well cared for in their absence, as 90% of owners put them in boarding when they go on holiday, rather than with a pet sitter.
Passion and Lifestyle
Running a kennel or cattery allows you to combine your passion for animals with a profitable business. With the UK pet boarding market being estimated to grow at a compound annual growth rate (CAGR) of 7.7% from 2024 (£448 million) to 2030 (£755 million), purchasing this kind of business in an industry with steady growth is a good idea for stable capital preservation and appreciation.
In addition to the business being one where you can channel your passion for pets, the large properties attached mean that they are ideal for family living. When buying a pet boarding facility with this in mind, evaluating the property as your future home will play a key part in the decision making process.
Economic Resilience and Better Banking Options
The market for pet boarding services continues to rise as pet ownership increases, with clients increasingly seeking boutique kennels for their “fur babies.” And financial institutions are now recognising these businesses more and more as legitimate income providers, which is improving access to fixed-rate lending. In fact, some lenders have dedicated financial solutions tailored to the kennels and catteries sector.
But the good news doesn’t stop there! Pet care businesses typically maintain stability even during economic downturns and are seen as a key recession-resilient sector by investors. In this current turbulent economic environment, this point cannot be highlighted enough.
Location, Location, Location
When looking at buying a pet boarding business, assess the proximity of the site to pet-owning communities and veterinary services.
The South West and South East has the highest levels of cat ownership, while the North East and Northern Ireland have by far the highest number of dog owners, according to Statista.
Broken down into segments between canines and felines, dogs were the largest revenue-generating pet in 2023 due to being the highest-owned pet in the UK. However, cats are currently the most lucrative pet, registering the fastest growth during the forecast period. Understanding the revenue and growth opportunities in different locations for different pets could influence your decision about where to buy your kennels or cattery business.
Diversified Service Offerings
The wider pet market is large, encompassing insurance, supplements, food, socialising, health, furniture, clothes, and even customised feeding bowls!
The growing trend of pet pampering has led some businesses to focus on grooming, pet spa services, and pet training, including nail trimming. While boarding businesses primarily cater to just that need, some have expanded to offer these ‘luxury’ services as supplementary offerings.
Understanding that customers are looking for a more luxurious experience for their pets can also help you to identify businesses that either already offer extra services or have the potential to, with low sunk costs.
Due Diligence
Begin your due diligence process by verifying all necessary licenses, permits, and certifications are current, while also developing a thorough understanding of local zoning regulations and animal welfare requirements.
Next, assess the quality of operations by evaluating the experience and reliability of existing staff, reviewing current operational procedures, and identifying potential areas for improvement. It’s crucial to examine the business’s veterinary relationships, including connections with local practitioners who may provide referrals. Ensure robust protocols exist for handling veterinary emergencies and medication administration. In today’s market, formal veterinary partnerships have become increasingly important, with successful kennels establishing clear procedures for managing animals with health concerns.
The reputation of the business also warrants careful scrutiny. Review customer feedback, ratings, and community standing to gauge public perception. Analyse the strength of the existing client base and assess retention potential for sustained business growth. Evaluate the effectiveness of the current social media presence and marketing strategies, recognizing that reviews and word-of-mouth recommendations carry significant weight in this service-oriented industry.
Finally, conduct a comprehensive financial review. Thoroughly analyse all revenue streams, operating expenses, and profit margins to ensure the business represents a sound investment opportunity.
The Right Kennels and Catteries Business Broker
Purchasing a kennels or cattery business combines passion with profit potential. The evolving pet care sector offers significant opportunities for those willing to meet increasing quality expectations. Success depends on your commitment to exceptional animal care, strong business management, and continuous adaptation to industry trends.
Of course, this is both a lifestyle choice and a business venture—your genuine love for animals will be the foundation of your success.
“Going through Kings was a good experience. I would definitely recommend using them. Their proactive and visible marketing and their assistance with financing and pushing the deal through were excellent. As far as new buyers went, I was looking for someone in a good position financially who was a nice fit for the business. Thankfully, Kings delivered a great buyer.” – Almora Cattery
Kings Business has been facilitating the sale of kennels and catteries for many years, and with a wealth of experience in selling these types of businesses, we can identify the right buying opportunity for you.
Thinking of selling your kennel?
If you are considering selling your business and have any questions about what you may need to consider, then one of our experienced sales negotiators are always here to chat through any important points you may want to discuss.
Looking to buy a cattery?
Are you looking to purchase a business? Then the Kings Business sales team are here to work with you. Perhaps you are considering entering a new market or expanding your presence within an existing one? Whatever stage you’re at, Kings have a wealth of opportunities that may be of interest to you.
