A Grand Junction-based brokerage and advisory firm that focuses on the pet industry reported a 33 percent increase in transactions closed in the first half of 2024 compared to the same period in 2023.

Recent transactions included the sale of Wag Resort — a dog day care, boarding, grooming and training business with two locations in Grand Junction.

Following a year for PET|VET M&A, Sales & Advisory with more than $70 million in client sales, 2024 could be even better, said Teija Heikkilä, founder, chief executive officer and principal broker of the firm.

“Q3 is shaping up to be exceptionally strong. We have deals in escrow poised to close matching the combined dollar volume of Q1 and Q2. Additionally, several structured auctions are set to conclude, with all deals expected to close within the quarter. Even if we only close the current escrowed transactions, this will mark the best Q3 in our history,” Heikkilä said.

With more than 200 total transactions with a combined sales volume exceeding
$490 million, PET|VET could break the $500 million threshold in the third quarter, she said.

“Our success, as we approach $500 million in sales, is deeply rooted in the ongoing consolidation within the pet care industry,” Heikkilä said. “When we launched the company in 2007, we never could have anticipated how the industry would evolve, let alone that it would become the sole focus of our firm. The shift in how consumers view and care for their pets has played a significant role in this transformation.”

Recent transactions for PET|VET included Wag Resort, BARKS Dog Day Care in Georgia, B&S Kennels in Indiana, New Inn Kennels in Connecticut and a full-service pet resort in California.

Best Friends Pet Hotel purchased Wag Resort and BARKS Dog Day Care, Heikkilä said. That promises to elevate the Wag Resort operation as well as enable employees to participate in a stock ownership plan.

Wag Resort opened its first location at 398 Indian Road in Grand Junction in 2014 and opened a second facility at 2509 Industrial Court five years later.

Heikkilä said the primary concerns she and her team hear from clients and potential clients are whether or not industry growth constitutes a bubble that could eventually burst. “We reassure them that consolidation in the pet care industry is still in its early stages, so the idea of a bubble isn’t applicable at this point. Our team addresses these concerns by emphasizing the long-term stability and ongoing demand within the industry, which continues to drive growth and investment.”

More private equity firms moving into the pet care space also could be viewed as a troubling sign. But Heikkilä said she sees the trend as a positive development for her clients and her company.

“Whenever an industry experiences an influx of investors, it’s a significant advantage for business owners. The increased interest broadens the pool of potential buyers, which naturally drives up prices due to heightened competition. The impact on our overall business prospects is undoubtedly positive,” she said. “As sellers become more aware of their options — whether in deal structuring, valuations or selecting a buyer group that aligns with their company’s culture — the demand for professional representation and a well-managed sales process will only grow.”

Heikkilä attributed the success of PET|VET to a commitment to providing clients with expertise and guidance throughout the sales process. Anticipating industry trends also has played a key role, she said. She cited one trend — the concept of pet ownership evolving into pet parenting — for driving growth and innovation within the pet care industry.

“Today’s pet parents view their animals as integral family members, leading to a growing commitment to budget for a wide range of pet needs. This shift is evident across various sectors, including veterinary care — where specialized services are in high demand — retail and the premium pet food market. Additionally, there is increased spending on services such as boarding, day care, grooming and training, all of which cater to the well-being and enrichment of pets. This evolution in how pets are perceived and cared for continues to make the pet industry a dynamic and resilient market.”

The pet care industry constantly changes as trends come and go. But Heikkilä said she’s optimistic about the future. “We take a proactive and adaptive approach to stay ahead of potential changes in the pet care industry. We continuously refine and adjust our criteria for the listings we choose to represent, ensuring they align with the latest demands within the investor groups seeking acquisitions in pet care and animal health.  This involves maintaining ongoing, close relationships with all the private equity firms active in the pet care space.”

For additional information about PET|VET M&A, Sales & Advisory, log on to www.petvetsales.com or call (970) 609-9220.