Business Overview

Licensed established pre-school being sold with the real estate. It is a center-based facility with building designed by the owners specifically for use as a preschool facility. Licensed for 59-90 students. RI certified teachers on staff. DHS certified.

Financial

  • Asking Price: $1,050,000
  • Cash Flow: N/A
  • Gross Revenue: N/A
  • EBITDA: N/A
  • FF&E: N/A
  • Inventory: N/A
  • Inventory Included: Yes
  • Established: N/A

Detailed Information

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

Why is the Current Owner Selling The Business?

There are all types of reasons individuals decide to sell companies. Nonetheless, the real reason and the one they say to you may be 2 absolutely different things. For instance, they may state "I have a lot of other obligations" or "I am retiring". For numerous sellers, these reasons stand. But, for some, these might just be reasons to try to conceal the reality of changing demographics, increased competitors, recent reduction in incomes, or an array of other factors. This is why it is extremely vital that you not count entirely on a vendor's word, however rather, utilize the vendor's solution together with your total due diligence. This will repaint a more practical image of the business's existing scenario.

Existing Debts and Future Obligations

If the current company is in debt, which numerous companies are, then you will need to consider this when valuating/preparing your offer. Lots of businesses borrow money so as to cover things like inventory, payroll, accounts payable, etc. Keep in mind that occasionally this can mean that earnings margins are too tight. Lots of businesses fall under a revolving door of taking loans as a way to pay back other loans. In addition to debts, there may also be future obligations to think about. There may be an outstanding lease on equipment or the structure where the business resides. The business may have existing agreements with suppliers that should be satisfied or may lead to charges if terminated early.

Understanding the Customer Base, Competition and Area Demographics

How do businesses in the location draw in brand-new consumers? Often times, operating businesses have repeat consumers, which create the core of their daily profits. Particular elements such as brand-new competitors growing up around the location, road building, as well as personnel turnover can influence repeat customers and adversely affect future profits. One vital thing to take into consideration is the area of the business. Is it in an extremely trafficked shopping center, or is it hidden from the highway? Undoubtedly, the more people that see the business regularly, the higher the chance to build a returning client base. A last thought is the basic area demographics. Is the business placed in a largely populated city, or is it situated on the outskirts of town? How might the local average household earnings effect future revenue potential?