Business Overview

Located in the beautiful Tidewater Virginia region, this local daycare facility serves about 85 children from 6 weeks to age 12 (currently licensed for 96 but chooses to limit enrollment). The purpose-built facility allows for the separation of children by age group to optimize play and learning. With about a 50/50 mix of private pay vs. subsidized students, this business is able to serve the needs of the entire community and currently has a waiting list for new clients. This is NOT a franchise – company was built from the ground up to fill a gap in the local area. The experienced FT and PT staff focuses on child development through education and nurturing.

4-year average Sellers Discretionary Earnings – $94,000

**UPDATE – This facility has been able to remain open during the COVID 19 pandemic and reduced enrollments have been offset by grants and PPP funding. Demand remains strong and enrollments are increasing. Long-term outlook is very positive.

Financial

  • Asking Price: $275,000
  • Cash Flow: $140,347
  • Gross Revenue: $477,664
  • EBITDA: N/A
  • FF&E: $72,184
  • Inventory: N/A
  • Inventory Included: N/A
  • Established: 2005

Detailed Information

  • Property Owned or Leased:N/A
  • Property Included:N/A
  • Building Square Footage:N/A
  • Lot Size:N/A
  • Total Number of Employees:10
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

This 3468 sq ft facility is located on just over 2 acres and provides ample room for kids to play outside. Plenty of parking and great central location. Facility includes separate infant room, full kitchen, and administration space. Property is not included in sale price but is available for sale at $525,000. Property sale will be represented by KW Commercial.

Is Support & Training Included:

Will train for 2 weeks @ $0 cost. The new owner, if serving as Director, should have Infant/Child CPR certification and be able to pass a background check. Ideally will have experience in early childhood education. Business is required to maintain a state Social Services license, Business license, Health Department license and operation permit from state Fire Marshall.

Purpose For Selling:

Owners are retiring.

Pros and Cons:

There is HUGE demand for quality childcare in this area and very little competition.

Opportunities and Growth:

The business is currently licensed for 96 children based on the square footage of the facility. There is ample land to expand the current facility to accommodate more.

Additional Info

The venture was founded in 2005, making the business 17 years old.

Why is the Current Owner Selling The Business?

There are all sorts of reasons why individuals decide to sell businesses. Nonetheless, the genuine reason and the one they say to you might be 2 entirely different things. As an example, they might say "I have way too many other commitments" or "I am retiring". For many sellers, these factors are valid. But, for some, these might simply be reasons to attempt to conceal the reality of altering demographics, increased competitors, current decrease in profits, or a range of various other factors. This is why it is really crucial that you not count completely on a vendor's word, however rather, utilize the seller's answer combined with your general due diligence. This will paint a much more realistic image of the business's current circumstance.

Existing Debts and Future Obligations

If the current entity is in debt, which many businesses are, then you will have reason to consider this when valuating/preparing your deal. Many businesses borrow money in order to cover things such as supplies, payroll, accounts payable, so on and so forth. Bear in mind that sometimes this can imply that revenue margins are too thin. Numerous businesses fall into a revolving door of taking loans as a way to pay back other loans. Along with debts, there may also be future obligations to think about. There may be an outstanding lease on tools or the building where the business resides. The business may have existing agreements with suppliers that should be satisfied or might result in charges if canceled early.

Understanding the Customer Base, Competition and Area Demographics

How do businesses in the area draw in brand-new consumers? Many times, businesses have repeat clients, which create the core of their everyday revenues. Particular factors such as new competitors sprouting up around the area, roadway building, and also personnel turn over can affect repeat consumers and adversely impact future earnings. One vital point to consider is the placement of the business. Is it in a very trafficked shopping center, or is it hidden from the highway? Undoubtedly, the more people that see the business regularly, the higher the opportunity to construct a returning client base. A last idea is the basic location demographics. Is the business placed in a largely inhabited city, or is it situated on the outskirts of town? How might the local median home income effect future earnings prospects?