Business Overview

This 8-room stand-alone childcare center located in a suburb east of Houston is licensed for 145 children with a current enrollment of 97. They participate in the subsidized childcare program (NCI/Workforce Solutions) and the federally funded Food Program. With a Texas Rising Star Level 3 Star program, they will become a 4 star once TRS opens for reviews again. They use Frog Street Press curriculum for all children – infants through school age and use ProCare Solutions to track enrollment, payments and communicate with parents. The highly rated local school ISD picks up and drops off at the daycare making the after-school program very strong. The daycare does have a Ford E350 van to use as needed in daycare activities. Seller/Director is ready to retire. Sales price includes real estate and building. SBA financing available. Please refer to CBB Listing #8278

Financial

  • Asking Price: $1,550,000
  • Cash Flow: $168,558
  • Gross Revenue: $668,125
  • EBITDA: N/A
  • FF&E: $120,000
  • Inventory: $1,000
  • Inventory Included: Yes
  • Established: 1995

Detailed Information

  • Property Owned or Leased:Own
  • Property Included:Yes
  • Building Square Footage:7,877
  • Lot Size:N/A
  • Total Number of Employees:10
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

7877sf freestanding facility on 27,888sf of land

Is Support & Training Included:

Seller will train

Purpose For Selling:

Retirement

Opportunities and Growth:

Focus on Internet presence and social media. Hire more teachers and accept more students.

Additional Info

The venture was started in 1995, making the business 27 years old.
The transaction does include inventory valued at $1,000, which is included in the requested price.

The company has 10Ft employees and is situated in a building with disclosed square footage of 7,877 sq ft.

Why is the Current Owner Selling The Business?

There are all types of reasons people choose to sell operating businesses. Nevertheless, the genuine factor vs the one they tell you may be 2 absolutely different things. As an example, they may say "I have way too many other responsibilities" or "I am retiring". For lots of sellers, these factors stand. But, for some, these might just be excuses to try to conceal the reality of changing demographics, increased competitors, current reduction in profits, or a range of various other reasons. This is why it is extremely vital that you not count totally on a seller's word, however instead, utilize the seller's solution together with your overall due diligence. This will repaint an extra reasonable image of the business's existing scenario.

Existing Debts and Future Obligations

If the existing entity is in debt, which many companies are, then you will have reason to consider this when valuating/preparing your offer. Lots of operating businesses borrow money so as to cover things like supplies, payroll, accounts payable, so on and so forth. Bear in mind that sometimes this can imply that earnings margins are too small. Numerous companies fall into a revolving door of taking on debt as a way to pay back other loans. In addition to debts, there may also be future obligations to take into consideration. There may be an outstanding lease on equipment or the structure where the business resides. The business may have existing contracts with suppliers that must be met or might lead to fines if canceled early.

Understanding the Customer Base, Competition and Area Demographics

How do companies in the area attract new customers? Most times, operating businesses have repeat clients, which form the core of their daily revenues. Particular variables such as new competitors growing up around the location, road building and construction, as well as employee turn over can impact repeat customers as well as negatively influence future revenues. One vital thing to consider is the area of the business. Is it in an extremely trafficked shopping center, or is it concealed from the main road? Clearly, the more people that see the business often, the higher the opportunity to develop a returning customer base. A last thought is the general area demographics. Is the business placed in a densely populated city, or is it situated on the outside border of town? Exactly how might the regional median family income impact future income prospects?