The Strategic Power of Acquisitions

I have been in the business brokerage industry for over 20 years. One of the things that I have learned over that time, is that it is easier to run a larger business than it is to run a smaller business, and as the business owner, you must develop the skills to manage a larger business.[1]

For owners of pet boarding businesses, the drive to grow is about more than just increasing revenue—it’s about building long-term sustainability, market resilience, and the ability to seize new opportunities as they arise. Growth allows you to achieve economies of scale, diversify your offerings, attract top talent, and strengthen your brand’s credibility. In the competitive pet care industry, standing still is rarely an option; continuous growth is essential for remaining relevant, adapting to shifting customer preferences, and navigating economic fluctuations.

While organic growth—expanding services, increasing marketing, or opening new locations from scratch—can be effective, it is often slow and resource-intensive. Acquisitions, by contrast, offer a powerful shortcut to scale. By purchasing existing pet boarding businesses, you can:

• Expand rapidly into new markets and geographies
• Instantly acquire established customer bases and revenue streams
• Gain access to experienced staff and operational expertise
• Diversify your service offerings and reduce risk
• Increase your bargaining power with suppliers and lenders
• Leverage the reputation and goodwill of established brands

Acquisitions also help you overcome the high barriers to entry in the pet boarding sector, such as zoning restrictions, facility requirements, and the time needed to build trust with pet owners. For business owners with ambitions to grow quickly and efficiently, acquisitions are a proven strategy to achieve scale, build resilience, and outpace competitors.

Dallas-Fort Worth Market: Demand, Growth, and Opportunity

The Dallas-Fort Worth (DFW) metroplex is one of the fastest-growing regions in the United States, with a booming population and a culture that highly values pets. Pet ownership rates are at historic highs—about 70% of U.S. households now own pets, and DFW is no exception. This surge in pet ownership, combined with rising disposable incomes and a preference for premium pet care, has fueled explosive demand for boarding, daycare, grooming, and related services.

North Texas Growth Corridors: Where to Expand

Within North Texas, several corridors stand out as hotbeds for expansion:

• Collin County: Cities like McKinney, Frisco, and Prosper are experiencing rapid population growth, attracting families and professionals who prioritize high-quality pet care.
• Denton County: Suburban expansion and new housing developments are driving demand for pet services.
• Kaufman and Rockwall Counties: These areas lead the region in percentage growth, making them attractive for new facilities.
• Northern Suburbs: Towns such as Anna, Princeton, and Weston are seeing significant new development and are underserved by existing pet boarding options.

These corridors combine high pet ownership rates, rising affluence, and a steady influx of new residents—creating sustained demand for reliable, quality pet boarding and related services.

Market Stability and Acquisition Potential

Purchasing an existing pet boarding business in these growth corridors offers notable advantages:

• Established Reputation: Trust is paramount in pet care. Businesses with loyal client bases and strong local reputations command premium pricing and repeat business.
• Barriers to Entry: Zoning restrictions and high upfront facility costs limit new competition, making established locations more valuable.
• Immediate Cash Flow: Acquisitions provide instant access to revenue, infrastructure, and trained staff, reducing the risks associated with starting from scratch.
• Growth Headroom: Many existing businesses operate below capacity, offering upside potential through expanded services, marketing, or facility upgrades.

In short, acquiring established pet boarding businesses in North Texas’s high-growth areas is a stable, strategic way to capitalize on the region’s booming demand.

Skills Required for Multi-Location Success

Transitioning from a single location to a multi-site operation demands a new set of skills and a shift in mindset:

• Operational Excellence: Standardizing processes across locations ensures consistency, quality, and efficiency.
• Leadership and Delegation: Empowering local managers and building strong teams is essential, as you can’t be everywhere at once.
• Financial Acumen: Understanding budgeting, forecasting, and the financial dynamics of multiple sites is critical for sustainable growth.
• Strategic Planning: Identifying the right markets, evaluating acquisition targets, and integrating new businesses require careful analysis and planning.
• Change Management: Successfully merging teams, cultures, and systems is crucial for retaining staff and customers after an acquisition.

Resources to Build These Skills

• Reading: The first place I would start is Amazon to order some books on how to run and grow a successful pet boarding business. They have several good books to choose from. I would suggest reading them all.
• Industry Associations: Organizations like the International Boarding & Pet Services Association (IBPSA) offer training, certifications, and networking.
• Online Learning: Platforms such as The Dog Gurus and GingrU provide courses on pet care, business management, and scaling operations.
• Consultants and Coaches: Industry experts can guide you through expansion planning, operational optimization, and integration of acquisitions.
• Local SBDCs: Small Business Development Centers offer workshops on business planning, financial management, and growth strategies.

Investing in your own and your team’s professional development is essential for successful multi-location management.

Revenue Streams and the Power of Diversification

A multi-location pet boarding business can tap into a variety of revenue streams:

• Core Services: Overnight boarding and daycare remain the backbone of most businesses.
• Grooming: Full-service grooming and a la carte options are highly profitable and in demand.
• Training and Enrichment: Obedience classes, board-and-train programs, and enrichment activities attract premium clients.
• Retail Sales: Pet food, toys, accessories, and branded merchandise offer additional revenue and convenience for customers.
• Specialty Services: Wellness offerings (e.g., massage, hydrotherapy) and pet photography cater to niche markets.

The Value of Diversification

Diversifying your services isn’t just about boosting revenue—it’s about risk management and customer retention. By offering a mix of boarding, daycare, grooming, training, and retail, you:

• Attract a broader customer base
• Smooth out seasonal fluctuations in demand
• Deepen client relationships and increase lifetime value
• Build resilience against market shifts

Financial Expectations: SBA Loans and Other Options

Expanding through acquisition or new locations requires substantial capital. Fortunately, several financing options are available:

SBA 7(a) and 504 Loans

• SBA 7(a) Loans: Up to $5 million for acquisitions, working capital, or property purchases. Terms up to 25 years if real estate is included; 7–10 years for business-only acquisitions.
• SBA 504 Loans: Designed for major fixed assets like real estate and equipment, also with long-term repayment options.
• Down Payment: Typically, 10–15% equity injection required.
• Interest Rates: Generally lower than conventional loans due to government backing.

Financial Realities

When acquiring a business with real estate, expect longer repayment terms (up to 25 years), making cash flow management easier. For acquisitions without real estate, shorter terms (7–10 years) mean higher monthly payments but less long-term interest expense. An add-on business acquisition that does not include real estate typically pays for itself in four years or less, and an acquisition that includes real estate typically pays for itself in 10 years or less if you use the profits from the acquisition to pay off the loan.

How Gateway Mergers & Acquisitions Can Help

Gateway Mergers & Acquisitions is North Texas’s trusted partner for business owners seeking to scale through acquisition. With more than 25 years of experience in business sales, mergers, and acquisitions, Gateway offers:

• Access to Exclusive Listings: We maintain a robust inventory of pet boarding businesses for sale in high-growth North Texas markets.
• Expert Guidance: Our Certified Business Intermediaries help you identify, evaluate, and negotiate the right opportunities, ensuring a smooth transaction.
• Financing Solutions: We connect buyers with SBA lenders, alternative financing, and seller-financed deals to make acquisitions possible—even for first-time buyers.
• End-to-End Support: From initial search to post-acquisition integration, our team guides you through every step, leveraging decades of industry expertise to maximize your success.

Conclusion

The Dallas-Fort Worth pet boarding market is booming, with high demand, resilient growth, and exciting opportunities in the region’s fastest-growing corridors. For current pet boarding business owners, acquisitions offer a proven path to rapid, stable expansion—delivering instant scale, diversification, and competitive advantage. By building the right skills, tapping into multiple revenue streams, and leveraging smart financing, you can position your business for long-term success.

Gateway Mergers & Acquisitions is ready to help you navigate this journey. With our extensive experience, deep market knowledge, and access to the best opportunities and financing options, we are your partner in building a multi-location pet boarding empire in North Texas. Let us help you unlock the next chapter of your business growth.

Give us a call today at (972) 219-6961.