The Three-Legged Stool: What Makes a Pet Brand Attractive to Buyers

At ForceBrands, we talk to founders, investors and executives who are shaping consumer products daily. One question that continuously arises is: what makes a brand stand out when it’s time to raise capital or sell?

To answer it, we sat down with Carol Frank, founder of Bird’s Eye Advisory Group.

Carol started her career as a CPA at Ernst & Young, earned her MBA, and went on to start and sell three pet companies. She later became an investment banker, and today she advises pet company founders with $10 million to $100 million in revenue. She brings almost 40 years of pet industry experience to that work.

This is what Carol had to say about what makes a pet brand attractive to buyers, beyond the financials.

Carol has long used the analogy of a three-legged stool. If one leg is wobbly, the whole thing tips over. If all three are solid, you’ve got something buyers want.

Leg One: A Brand People Recognize

“The first leg is how strong your brand is, and how well people recognize it,” Carol says.

Her go-to example is Kong, the durable pet toy company. “Everybody knows Kong.” That kind of recognition is hard to build, and buyers know it.

She also points to Woof, another pet toy company, a more recent success story. “They came out of nowhere and sold for a huge multiple [to the Farmer’s Dog]. But they were everywhere, and everybody knew who they were. They did an incredible job with their brand.”

It's critical to prioritize brand-building and not just performance marketing in your overall brand strategy. If your product sat on a shelf beside your competitors’ products, would people recognize it as yours?

Leg Two: Healthy Gross Margins

While this is technically a financial metric, to a buyer, your margins say much more than a number on a spreadsheet can.

“What makes a brand attractive to a buyer or investor is that they actually have decent margins,” Carol explains. She looks for gross margins of at least 50%, ideally more. “Otherwise it becomes hard to be very, very profitable.”

So how do you build and protect those margins? It starts with differentiation. “Do everything in your power to make your brand and your products better or different than your competitors,” Carol says. “A race to the bottom on price is just gonna leave you banging your head against the wall.”

Strong margins show buyers that customers value your product enough to pay for it, and that your business has room to invest in growth.

Leg Three: Double-Digit Growth

The third leg is consistent growth. “Double-digit sales growth year over year, where you’re growing at least 10% a year, is also something that makes a brand very attractive,” Carol says.

Buyers aren’t just paying for what your business is today. They’re paying for where it’s headed, and steady growth shows that the momentum is real.

Building that kind of growth starts with knowing your market. Carol urges founders to “really understand the landscape of the industry, the sales channels, who are the power players,” and to figure out how to get their product into market.

Just as important is making sure there’s real demand. “Get customer buy-in,” she says. “You have to have done your research to make sure that people want what you’re going to sell.”

As you grow, make sure that growth doesn’t depend on a single account. Carol has seen brands with 60% to 70% of their business tied to one customer. “That might work fine for you,” she says, “but that doesn’t work that well for a buyer.” Spreading revenue across several customers and channels makes your growth more durable, and more attractive to buyers.

The Bonus: Science-Backed and Longevity-Focused

Beyond the three basics, Carol sees one timely trend getting buyers’ attention right now. “I like to see anything science-backed, whether it’s a supplement or a treat. Anything that has a longevity focus is very attractive. It’s very similar to what’s happening with people.”

We want longer, healthier lives for ourselves, and pet parents want the same for their pets. Products with real science behind them stand out in a crowded market.

Putting It All Together

Carol sums it up best: “If you have a science-backed, longevity-focused pet company with great margins, a good brand, and great growth, you are in the money.”

Not every company will check every box, and that’s okay. But if you might sell someday, even years from now, start building those three legs today.

Building a pet brand and need the leadership team to take it to the next level? Connect with ForceBrands.