2021上半年宠物行业并购和资本市场趋势报告（英文版）

THEDEALHOUND ExploreM&AActivity,CapitalMarketConditionsandCurrentTrendsforthe PetIndustry SDRVentures 720.221.9220SDRVENTURES.COM 1H2021InvestmentBanking&SecuritiesOfferedThroughSDR THEDEALHOUND 1H2021/VOL12|ISSUE1 THEDEALHOUNDIH2I:WHATTOKNOWCONTENTS Whilesomesectorssufferedduringthegloballockdown,spendingTransactionActivity onpetfood,products,andrelatedservicesthatwerestrongActiveBuyers throughout2020maintainedmomentumthroughthefirsthalfofPublicBasket 2021,andweseenoletupastheworldcontinuestoemergefromM&AMarketActivity theveilofCOVIDAboutSDRVentures Thetrendtowardthehumanizationofpets-prioritizingtheirhealth andwellnessaswewouldforanyfamilymemberiscatchingonABOUTSDR globally,openingthedoorfornewopportunitiesinChinaandEstablishedin2002,SDRVentureshas otherpartsoftheworld. developeddeepM&Aandcapital Petcloning,oncethestuffofsciencefiction,ishereandistransactionknowledgeandexpertise.attractingmainstreamattention.Whilepotentiallycontroversial,thisSDRofferstransactionadvisory.private newmarketbearswatching.capitalformationandbusiness consultingservicesacrossawiderange TheWideWorldOfPets-AndBeyondofindustries.Weservebusinessowners andoperatorsofprivatelyheld PetownershipandrelatedexpendituresacrosstheUnitedStatescompaniesandprovidethemwitha continuedtoboomduringtheCOVID-19pandemic.Thatshouldforetell opportunitiesacrossthepetservicessector,Petownershiplastyearwas professional-classexperience. up3%,meaning70%ofAmericanhouseholdshavesomekindofpet,anDEALHOUND all-timehigh.Spendingonpetfoodwasup11%in2020 Wecontinuetoseeaneffectwecallthe"humanization"ofpets,owners CONTACTS whoincreasinglyseepetsasfamilymembersworthyofhuman-gradefoodChrisBouck ingredients,alongwiththedesiretoprovidenutritious,healthyfoodthatisPrincipal- PetTeam producedsustainably.1Forthesector,thosetrendsareencouraging.Even moreintriguingiswe'reseeingthesetrendsspreadglobally.InChina 720.221.9220 whichrepresents18%oftheworld'spopulationat1.4billion2-we'veseenchrisb@sdrventures.com petownershipgrowatacompoundrateofnearly33%from2015to2020SashaRogachevsky withananticipatedgrowthof14%overthenextthreeyears.PetserviceVicePresident- spendinginChinaisestimatedtoeclipse$67billionayearby2023.3WhilePetTeam petownershipandspendingintheU.S.builds,it'snolongeronlyaU.S.720.221.9220 sroaachevskv@sdnventures.com market.Thinkbigger. Wecontinuetowatchthedriversbehindpetownershiptrends,theLoganBohlender humanizationofpets,andthegrowingglobalmarket.Additionally,we'reAssociate watchingthepandemic-relatedspikeinpetproducte-commerceandpetPetTeam 720.221.9220 telehealthvisits.4Butthisistoday'snews,thecurrentforcespropelling markets.Lookingforward,there'sanotherforceworthwatching:animal lbohlender@sdrventures.com cloning.IfthatsoundslikesomethingfromaSchwarzeneggermovie,itis.MorganHoffman Butit'salsoreallyhappening,withapplicationsrangingfromreunitingAnalyst- familieswithabelovedpetwhohasdiedtoagribusiness,savingPetTeam endangeredspecies,orevenrevivingextinctspecies.Aquarter-century720.221.9220 ago,thefirstclonedsheep,Dolly,wasworldwidenews.Todayafamilyofmlhoffman@sdrventures.com meanscanorderupageneticcopyofFido.5At$40,000to$50,000,thepricesoundsexorbitant,butconsiderthataprizestudbullsoldlastyearinNorthDakotaforS1.5million.6Suddenly.thepotentialforanimalcloning whetherforafamilygrievingthelossofapetorabreederseekingto replicateaWestminsterchampionorprizebull-comesintofocus. Theinformationcontainedhereinisbasedonsourceswebelievereliablebutisnotguaranteedbyusandisnottobeconsideredallinclusive.Itisnottobeconstruedasanofferorconsultationofanoffertosellorbuyanysecurities. 2 stmentBankingandSecuritiesOfferedThroughSDRCapitalMarkets,Inc.,MemberFINRAandSIPC, 1H2021/VOL12|ISSUE1 THEDEALHOUND PetOwnership:TheNextGeneration(s) generationthatisstartingfamilieslater,experiencingstagnantwages,creatinglessaccumulatedwealththantheprecedinggenerations,andhasmorestudentdebt.In1968,theaverageAmericanmanwasmarriedby23,todayit's 30.8Thegovernmentestimatesitcosts$233,000toraiseachildtoage18.Theadoptionprocessitselfaverages $43,000.9 Buttheseyoungergenerationscanadoptadogforaslittleas...free.1o Justbecausemanyoftoday'spetownersarelesslikelytospendondaycareandjuicepacksforchildrendoesn'tmeanthey'relesslikelytospend.Thisiscreatingopportunitiesforgrowthinpet-relatedservices.It'sestimatedthattheU.S. petindustrygeneratednearly$1oobillionlastyear,andoneinfiveownerssaidtheyspentmoreduringthepandemic's peakevenasothersectorsstruggled.Morethanhalfgavetheirpetsholidaygifts,andnearly70%ofMillennialsopted forhigher-endnaturalandorganicpetfood.11Nearlyhalfofsurveyedpetownersearnedmorethan$75,000ayear,and friends,spirituality,andcareer.12Petownershavemoneyandarewillingtoprioritizetheirpets.Tous,thatlookslikeopportunity. PetsWithoutBorders WhileChinaeliminateditsone-childpolicyin2015andrecentlyannouncedathree-childpolicytocombatfallingbirthrates,manyChinesefamiliessimplyshrugged:Whocanaffordthreekids?13Butpetownershipisontherise.Notonlyare Chineseconsumersadoptingmorepets,theyarebeingaccommodatedbyasteepriseinc