Insights from 6 Pet Industry Acquirers on What’s Hot, What’s Not, and What’s Next
By Carol Frank
2025 was a reset year for pet industry mergers and acquisitions. After the post-pandemic high of 2021–2022, the market cooled. But even as deal flow slowed, investor appetite for quality pet businesses remains strong—if you know what buyers are really looking for.
I spoke with six leading acquirers in the pet space to get their take on:
- Where the market stands now
- Which segments are still commanding attention
- Whether 2026 could mark a turning point
Here’s what you need to know.
📉 DEAL FLOW IN 2025: SLOWER, BUT NOT STALLED
“The market has been very slow this year.”
— Tyler Frances, Alpine Investors
Most experts agreed: 2025 was marked by a pullback. Several noted that exits were delayed or fell through due to macro uncertainty, shifting valuations, and tighter buyer standards.
Aliya Khaydarova (Inverness Graham) called deal flow “definitely slow.”
Ekta Sharma (Topspin) said it’s been “muted—especially on the durables side.”
David Cunningham (Visio-Cap) described the market as “selectively active,” meaning deals are still getting done, but only when the asset truly stands out.
Some firms, like Central Garden & Pet, reported a modest uptick in activity in late 2025—but even they noted, “it’s not like the floodgates have opened yet.”
🎯WHERE BUYERS ARE STILL ACTIVE: CATEGORIES THAT WIN
Across all interviews, one theme was crystal clear: buyers are chasing quality, not just growth.
Top categories include:
- Consumables (treats, supplements, and niche food formats)
- Pet services (daycare, grooming, training, boarding)
- Pet health (including insurance and wellness products)
- Functional/natural products with clear value propositions
“Pet services have proven remarkably resilient.”
— Walter Florence, Frontenac
Digs Dog Care, one of Frontenac’s platforms, is set to close 15 add-on acquisitions this year alone—proof that services with recurring revenue, trust, and convenience still drive value.
Premium consumables and products tied to preventive health are also gaining traction, particularly those with defensible margins and compelling customer loyalty.
Multiples have compressed. Sellers expecting 2021-era valuations are often disappointed.
💹 VALUATIONS & BUYER EXPECTATIONS: THE NEW NORMAL
“The returns sellers want should come from fundamental growth—not just hoping for a really high multiple.”— Harrison Seeman, Central Garden & Pet
Buyers are now asking:
- Can this business grow profitably in any market?
- Is there margin durability?
- Is the leadership team strong and scalable?
Strategics and PE firms still have cash to deploy—but many are no longer interested in competing in bidding wars. The focus is on strategic alignment, cash flow, and category leadership.
📝 IS NOW A GOOD TIME TO SELL? ONLY IF YOU’RE READY
If you’re running a solid, profitable, well-differentiated business—yes, buyers are interested.
“Well-positioned and well-run pet businesses are still attracting acquisition interest.”
— Walter Florence, Frontenac
But if your company is underperforming or caught in macro headwinds? Now might not be the time.
“Unless you have an A asset that’s profitable and growing… most people will wait.”
— Aliya Khaydarova, Inverness Graham
Several experts recommended using the next 12–18 months to:
- Strengthen margins
- Shore up recurring revenue
- Streamline operations
- Develop a compelling growth story
✨ 2026 OUTLOOK: CAUTIOUS OPTIMISM
There’s a sense that the worst of the slowdown is behind us—and many expect more companies to come to market in 2026.
“There’s a lot of cash out there and a shortage of good companies.”
— Harrison Seeman, Central Garden & Pet
Interest rates are declining. Tariff uncertainty has mostly stabilized. Buyer appetite remains. The capital is out there—but it’s chasing fewer, better assets.
For founders, now is the time to focus, prepare, and differentiate. Whether 2026 will be your exit year depends less on the market—and more on your company’s readiness.
🎯 Final Takeaway
2025 reminded everyone that “pet” isn’t a free pass to a premium valuation. But for founders who have built resilient, growing businesses, 2026 could offer real opportunity. Want to be ready to prove it? Learn more about our Exit Planning Bootcamp and Quarterly Compass Program.
Carol Frank is passionate about business, animals, and the intersection of the two. After starting her career as a CPA, Carol founded and operated three pet companies– a retail pet store, a wholesale distribution company, and a pet product manufacturing company. She then leveraged her experience in both finance and entrepreneurship to start BirdsEye Advisory Group, an M&A Advisory firm that helps pet company founders and entrepreneurs when they are ready to sell their business. She has a BBA in accounting from The University of Texas at Austin and an MBA from Southern Methodist University.
Over the years, Carol has served in leadership roles within the pet industry and on the board of more than a dozen nonprofit and business organizations. Her biggest passion is animals and she is thrilled to share her life with her Eclectus parrot Peri, and Daphne, a sweet, energetic Whoodle. She loves skiing, biking, and birding. She can be reached at cfrank@birdseyeadvisory.com