Pet Care Roll-Up Model

The model starts with a clinic-count panel that rolls forward each year as opening clinics plus acquisitions minus closures. Average clinic count, the mean of opening and closing, feeds revenue and most cost lines.

• A weighted acquisition-age calculation blends the founding platform, which enters mature, with new acquisitions that start at mid-year age. That weighted age converts into a ramp factor applied to volume-driven revenue streams, so newly acquired clinics contribute less than their full run-rate until they mature.
• This single blended-cohort proxy is a simplification, not a per-vintage matrix, but it captures the drag from integrating new practices.

Revenue builds from four streams: medical services, food and retail, grooming, and boarding. Medical revenue equals visits per clinic times ticket times average clinics times the ramp factor.

• Retail revenue is a percentage of medical revenue and inherits the same ramp. Grooming and boarding use their own volume and pricing drivers, also multiplied by clinics and ramp.
• Total revenue is the sum of streams. On the cost side, veterinarian compensation scales with medical revenue only, reflecting that vets earn from medical services.
• Support compensation, rent, and corporate overhead escalate annually with cost inflation. Other costs include medical and retail COGS, a distinct grooming cost of service, marketing as a percentage of revenue, and D&A as a percentage of revenue.

EBITDA is total revenue minus total operating expenses.

Medical revenue = visits per clinic × ticket × average clinics × the ramp factorCopy

The M&A cash schedule values the founding platform on day zero as starting clinics times trailing EBITDA per clinic times the purchase multiple, split into sponsor equity and acquisition debt. Each year, acquisition spend equals acquired clinics times trailing EBITDA per clinic times the purchase multiple, similarly funded by equity and debt.

• Interest accrues on the cumulative debt balance in a paid-in-kind style, adding to the debt rather than being cash-paid. A cash sweep applies a percentage of platform free cash flow against the debt balance, capped so debt cannot go negative.
• Cumulative equity and post-sweep debt roll forward across the hold. This structure shows how acquisition pace and cash generation interact to deleverage the platform.

The returns view constructs a sponsor equity cash flow stream: a year-zero equity outlay for the founding platform, annual follow-on equity contributions for acquisitions, and year-five exit proceeds. Exit enterprise value equals year-five EBITDA times the exit multiple, and equity proceeds subtract net debt at exit.

• The model calculates equity IRR, MOIC, and multiple arbitrage between exit and blended entry multiples. A dashboard presents ten key metrics, including year-five clinics, revenue, EBITDA, net income, revenue CAGR, EBITDA margin, revenue per clinic, sponsor IRR, MOIC, and exit EV.
• Traffic-light conditional formatting on EBITDA margin and IRR cards uses status thresholds set in the assumptions. This structure helps an operator or investor test how acquisition pace, integration ramp, corporate overhead, and exit pricing affect sponsor returns.