Listing ID: 67534
Great opportunity to own an established and reputable day care that has been serving the St. Mary’s County market for over 20 years. The center is situated in a growing part of the county nearby several large commercial and residential areas. There is a total of 7 classrooms in the center allowing for individualized attention and an ideal child to teacher ratio. The center offers programs for infants (starting at 6 weeks) up to children through age 6 including before and after school programs for children up to 12 years with a maximum capacity of approx. 115 children.
The center benefits from its long-standing reputation in the market along with a favorable population and demographic makeup which has provided the business to maintain about 80-85% enrollment prior to COVID. The Center did stay open throughout COVID with reduced capacity and was able to sustain operations with as little as 15 children enrolled. *As of the middle of July 2021 enrollment is at approx. 71 kids. We expect the business to have about 75-80 kids enrolled by late August/early September for the 2021/2022 school year. There is no question that the business will quickly get back to traditionally operating capacity within the next 6-9 months. The business has seen stable revenue and cash flow growth over the last several years prior to COVID with outstanding licensing reports. There is ample parking along with well-equipped outdoor play areas.
After nearly two decades of operating the business, the owner has decided to sell the center after a successful tenure of ownership. This represents an excellent opportunity for a new owner to take over a consistently profitable enterprise that’s poised for continued growth. The childcare industry is one of the fastest growing markets, so don’t miss out on this exceptional opportunity and contact us today to learn more!
Please note, the revenue and cash flow claimed is from 2019 and that the historical average performance from 2017-2019 was $764,900 in revenue and $247,846 in owner-operated cash flow. The center maintained strong revenue performance and was cash flow positive despite the impact of COVID, in 2020 Revenue was $578,306 with $89,165 in cash flow and 2021 was $611,344 in revenue with $101,397 in cash flow. As of January 2022, current enrollment stands at 70 kids. Based on historical/pre-covid performance the business is worth over $600k, but the seller is motivated and willing to sell at a reduced price, offering the business for $500,000.
- Asking Price: $500,000
- Cash Flow: $278,799
- Gross Revenue: $785,173
- EBITDA: N/A
- FF&E: $25,000
- Inventory: $2,000
- Inventory Included: N/A
- Established: 2000
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:5,609
- Lot Size:N/A
- Total Number of Employees:14
- Furniture, Fixtures and Equipment:N/A
The center occupies a 5,609 square foot facility in northern St. Mary’s County, Maryland just off a main thoroughfare with excellent street visibility and signage. There are 7 classrooms, office, kitchen, and a large outdoor playground area. The rent is $7,500/mo. and the buyer will have the opportunity to secure a new long-term lease with the seller/landlord.
Seller will provide necessary training and support.
Owner is retiring.
There is standard competition for the industry and market, but this center is established and has an excellent reputation in the area.
There is ample room to grow and expand the operation. The center is licensed for up to 115 individuals, but average historical enrollment has averaged between 95-100 pupils. The business saw a drop off in enrollment due to the pandemic, but it has bounced back with an expected enrollment of 75-80 pupils by the beginning of the 2021/2022 school year.
The business was founded in 2000, making the business 22 years old.
The transaction won't include inventory valued at $2,000*, which ins't included in the asking price.
The business has 14 employees and resides in a building with disclosed square footage of 5,609 sq ft.
The property is leased by the company for $7,500 per Month
Why is the Current Owner Selling The Business?
There are all sorts of reasons people decide to sell companies. Nevertheless, the true factor and the one they say to you might be 2 entirely different things. As an example, they might state "I have too many various obligations" or "I am retiring". For lots of sellers, these reasons are valid. But, for some, these may simply be excuses to try to hide the reality of transforming demographics, increased competitors, recent decrease in earnings, or a variety of other reasons. This is why it is extremely crucial that you not rely totally on a vendor's word, however rather, use the seller's answer together with your total due diligence. This will repaint an extra sensible picture of the business's present scenario.
Existing Debts and Future Obligations
If the existing business is in debt, which lots of companies are, then you will have reason to consider this when valuating/preparing your offer. Many companies take out loans in order to cover items like supplies, payroll, accounts payable, etc. Remember that in some cases this can indicate that revenue margins are too small. Numerous businesses come under a revolving door of taking on debt as a way to pay back various other loans. Along with debts, there may likewise be future obligations to consider. There may be an outstanding lease on tools or the structure where the business resides. The business might have existing contracts with suppliers that must be met or may cause charges if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do operating businesses in the area attract brand-new clients? Often times, businesses have repeat consumers, which develop the core of their day-to-day profits. Certain factors such as new competitors growing up around the location, roadway construction, as well as personnel turnover can influence repeat consumers and also adversely impact future revenues. One important point to think about is the location of the business. Is it in a highly trafficked shopping center, or is it concealed from the highway? Obviously, the more individuals that see the business regularly, the better the opportunity to build a returning customer base. A final idea is the basic area demographics. Is the business placed in a densely populated city, or is it located on the outside border of town? Exactly how might the neighborhood mean house earnings effect future revenue potential?