2021上半年宠物行业并购和资本市场趋势报告（英文版）

THEDEAL HOUNDExploreM&AActivity,Capital MarketConditionsandCurrent TrendsforthePetIndustrySDRVentures720.221.9220SDRVENTURES.COM1H 2021InvestmentBanking&SecuritiesOfferedThroughSDR 1H2021/VOL12|ISSUE1THEDEALHOUNDTHEDEALHOUNDIH2I:WHATTOKNOWCONTENTSWhilesome sectors suffered duringtheglobal lockdown,spendingTransaction Activityon pet food,products,and related services that were strongActiveBuyersthroughout2020 maintainedmomentumthroughthe firsthalfofPublicBasket2021,andweseenoletupastheworldcontinuestoemergefromM&AMarketActivitytheveilofCOVIDAboutSDRVenturesThetrendtowardthehumanizationofpets-prioritizingtheirhealthand wellnessaswewouldforanyfamilymemberiscatchingonABOUTSDRglobally,opening the door for new opportunities in China andEstablishedin2002,SDRVentureshasotherpartsoftheworld.developed deep M&Aand capitalPet cloning,once the stuff of science fiction,is here and istransaction knowledge and expertise.attractingmainstreamattention.Whilepotentiallycontroversial,thisSDRofferstransactionadvisory.privatenewmarket bearswatching.capitalformationandbusinessconsultingservicesacrossa widerangeTheWideWorldOfPets-AndBeyondof industries.Weservebusinessownersandoperators ofprivatelyheldPet ownership and related expenditures across the United Statescompanies and providethem withacontinued toboomduring the COVID-19pandemic.That should foretellprofessional-classexperience.opportunitiesacrossthepetservicessector,Pet ownership lastyearwasup3%,meaning 70% of Americanhouseholds have somekind of pet,anDEALHOUNDall-timehigh.Spendingonpetfoodwasup11%in2020CONTACTSWe continue to see an effectwe call the"humanization"of pets,ownerswho increasinglyseepetsas familymembersworthyof human-gradefoodChris Bouckingredients,along withthedesiretoprovidenutritious,healthyfoodthat isPrincipal-produced sustainably.1Forthe sector,thosetrends are encouraging.EvenPetTeammore intriguing is we're seeing these trends spread globally.In China720.221.9220whichrepresents18%oftheworld'spopulationat1.4billion2-we'veseenchrisb@sdrventures.competownershipgrowatacompoundrateof nearly33%from2015to2020Sasha Rogachevskywithananticipatedgrowthof14%overthenextthreeyears.PetserviceVice President-spendinginChinaisestimatedtoeclipse$67billionayearby2023.3WhilePetTeampet ownership and spending in the U.S.builds, it's no longeronly a U.S.720.221.9220market.Think bigger.sroaachevskv@sdnventures.comWe continue to watch the drivers behind pet ownership trends,theLogan Bohlenderhumanization of pets,and thegrowingglobal market.Additionally,we'reAssociatewatching thepandemic-relatedspikeinpetproducte-commerce andpetPetTeamtelehealth visits.4 But this is today's news, the current forces propelling720.221.9220markets.Looking forward,there's anotherforce worth watching:animallbohlender@sdrventures.comcloning.If that sounds like something from a Schwarzeneggermovie,it is.Morgan HoffmanBut it's also really happening,with applications ranging from reunitingAnalyst-families with a beloved pet who has died to agribusiness,savingPetTeamendangered species,or even reviving extinctspecies.Aquarter-century720.221.9220ago,thefirstcloned sheep,Dolly,was worldwidenews.Today afamilyofmlhoffman@sdrventures.commeans canorderup a genetic copyof Fido.5At$40,000 to$50,000, theprice sounds exorbitant,but considerthata prize stud bull sold lastyear inNorthDakotaforS1.5million.6Suddenly.thepotentialforanimalcloningwhether for a familygrievingthe loss of apet ora breeder seekingtoreplicateaWestminsterchampionorprizebull-comesintofocus.The information contained herein is based on sources we believe reliablebut is notguaranteed by us and is not to be considered allinclusive. It is nottobe construed as anofferorconsultation ofan offerto sellorbuyany securities.2stmentBanking andSecuritiesOffered Through SDR CapitalMarkets,Inc.,MemberFINRAand SIPC, 1H2021/VOL12|ISSUE1THEDEALHOUNDPetOwnership:TheNextGeneration(s)generation that is starting families later, experiencing stagnant wages, creating less accumulated wealth than thepreceding generations,and has more student debt. In 1968, the average Americanman was married by23,today it's30.8 The government estimates it costs $233,000 to raise a child to age 18.The adoption process itself averages$43,000.9Buttheseyoungergenerations canadoptadogforas littleas...free.1oJustbecausemanyof today's pet owners are less likelyto spendon daycare and juice packsfor children doesn't meanthey'relesslikelyto spend.This is creatingopportunitiesforgrowthinpet-related services.It'sestimatedthattheU.S.pet industry generated nearly $1oobillion last year,and one in five owners said they spent more duringthe pandemic'speakevenasothersectorsstruggled.Morethanhalfgavetheirpetsholidaygifts,andnearly70%ofMillennialsoptedfor higher-end natural andorganicpetfood.11Nearlyhalfof surveyedpet ownersearnedmorethan$75,000 ayear,andfriends, spirituality,and career.12 Pet owners have money and are willing to prioritize their pets.To us, that looks likeopportunity.PetsWithoutBordersWhile Chin