Business Overview

TRANSWORLD BUSINESS ADVISORS OF HOUSTON. LISTING REF #76931-730988

A well established, child care business to the South East of Houston that operates a unique business model. The business had revenues over $400,000 in 2019, with Seller’s Discretionary Earnings of $150,000. The global Covid-19 pandemic impacted the business in 2020 and 2021, but revenues are now trending upwards. 4-year average Seller’s Discretionary Earnings is around $90,000. Ideally suited for an owner – operator to take over.

Financial

  • Asking Price: $250,000
  • Cash Flow: $19,000
  • Gross Revenue: $234,000
  • EBITDA: N/A
  • FF&E: $55,000
  • Inventory: N/A
  • Inventory Included: N/A
  • Established: N/A

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:9
  • Furniture, Fixtures and Equipment:N/A
Is Support & Training Included:

2 weeks

Purpose For Selling:

retirement

Why is the Current Owner Selling The Business?

There are all sorts of reasons why individuals choose to sell companies. Nevertheless, the genuine reason and the one they tell you may be 2 entirely different things. As an example, they might state "I have a lot of other obligations" or "I am retiring". For lots of sellers, these reasons stand. But, for some, these may just be reasons to try to hide the reality of transforming demographics, increased competitors, recent reduction in incomes, or an array of other factors. This is why it is extremely crucial that you not rely completely on a seller's word, but rather, utilize the vendor's response combined with your overall due diligence. This will paint an extra reasonable image of the business's present scenario.

Existing Debts and Future Obligations

If the current business is in debt, which lots of businesses are, then you will certainly need to consider this when valuating/preparing your deal. Lots of businesses finance loans so as to cover points such as inventory, payroll, accounts payable, and so on. Remember that in some cases this can indicate that revenue margins are too tight. Numerous businesses come under a revolving door of taking on debt as a way to pay back various other loans. In addition to debts, there may also be future commitments to consider. There might be an outstanding lease on tools or the structure where the business resides. The business might have existing contracts with suppliers that must be satisfied or may cause penalties if canceled early.

Understanding the Customer Base, Competition and Area Demographics

Just how do operating businesses in the location draw in new consumers? Most times, operating businesses have repeat clients, which form the core of their daily profits. Specific variables such as new competitors growing up around the area, road building and construction, and employee turnover can influence repeat clients and also negatively impact future earnings. One important point to think about is the placement of the business. Is it in a highly trafficked shopping center, or is it hidden from the highway? Clearly, the more individuals that see the business on a regular basis, the better the opportunity to build a returning client base. A final thought is the basic area demographics. Is the business situated in a densely populated city, or is it located on the edge of town? Just how might the neighborhood typical house earnings influence future income potential?