Business Overview

An early learning and development center for children 6 weeks to 12 years of age.
This business was started in 1994 by a retired schoolteacher. Since then, two other locations have been opened.
This business maintains an excellent reputation within the community and contracts with many businesses to provide care for events as well as multiple locations with childcare offering quality learning experiences. Known throughout the region for providing the highest quality of care and education for children.
This business has been up and running in the Pacific NW since 1994.

Financial

  • Asking Price: $650,000
  • Cash Flow: $335,000
  • Gross Revenue: $768,524
  • EBITDA: N/A
  • FF&E: $100,000
  • Inventory: $8,000
  • Inventory Included: Yes
  • Established: 1994

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:14
  • Furniture, Fixtures and Equipment:N/A
Purpose For Selling:

retirement

Additional Info

The venture was founded in 1994, making the business 28 years old.
The sale will include inventory valued at $8,000, which is included in the listing price.

Why is the Current Owner Selling The Business?

There are all types of reasons individuals choose to sell businesses. However, the genuine reason and the one they tell you might be 2 totally different things. As an example, they might say "I have a lot of other obligations" or "I am retiring". For many sellers, these factors stand. However, for some, these might just be excuses to try to conceal the reality of changing demographics, increased competition, recent reduction in earnings, or an array of various other reasons. This is why it is extremely crucial that you not rely entirely on a seller's word, yet rather, use the vendor's solution along with your total due diligence. This will paint an extra sensible picture of the business's present circumstance.

Existing Debts and Future Obligations

If the existing company is in debt, which many businesses are, then you will certainly have reason to consider this when valuating/preparing your offer. Many businesses finance loans so as to cover things such as stock, payroll, accounts payable, so on and so forth. Bear in mind that occasionally this can mean that revenue margins are too thin. Numerous companies 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 think about. There may be an outstanding lease on equipment or the structure where the business resides. The business might have existing agreements with suppliers that have to be met or might cause charges if terminated early.

Understanding the Customer Base, Competition and Area Demographics

Just how do companies in the location attract brand-new customers? Often times, companies have repeat customers, which form the core of their day-to-day profits. Particular elements such as new competitors growing up around the area, road building, and staff turn over can influence repeat customers and also adversely affect future incomes. One essential point to think about is the location of the business. Is it in a very trafficked shopping mall, or is it concealed from the highway? Certainly, the more individuals that see the business regularly, the better the possibility to build a returning client base. A final thought is the general area demographics. Is the business placed in a densely inhabited city, or is it situated on the edge of town? Just how might the regional mean house income impact future income potential?