Listing ID: 72809
This well-respected learning center has a unique and hands-on program that helps children and adults reach
their full potential and has an excellent national brand reputation. One of 2 locations across the Metro owned
by the seller, this location is in Portland. This is a non-medical program that achieves amazing results! The
program provides individualized sensory & motor activities, cognitive skill training & a nutrition program.
Families attend the center and have a home-based program to follow to ensure consistent progress. Virtual
programs are now available as well to make the program available to all. Their proven process includes
comprehensive evaluations, individualized instruction, and customized programs that focus on getting to the
root of the participant’s issues and help them reach their full potential. The owner does not need an
educational background. We valued the business based on the costs of starting and building out a franchise
location. The Business comes with a 2400 square foot center, recently remodeled and refurnished. It comes
with all of the furniture and fixtures needed as well as the equipment specific to the program. It also includes
the franchise license and software licenses as well as trained staff, currently enrolled clients and an extensive
database of leads.
The current owners have several franchises across several states. They acquired 2 Portland area centers
in 2018 with one more to be developed. They started purchasing the centers because the program
changed the lives of their two sons, and they wanted to help other families. They helped develop many of
the processes, protocols, programs, and marketing for the home office. The business is well positioned for
further growth, as there is one location that can be developed in a location of the new owner’s choice. This
location flourished in 2019 and prior to the shutdown.
There is some competition from other similar programs; however, not many of these programs operate in
Oregon. This franchise has historically outperformed its competition in this sector and has a strong referral
network of families whose children have benefitted from these programs. There is one other location in town
owned by the seller that is also for sale.
As Portland re-opens from the pandemic and more parents go back to work in person, demand is going to
surge for after school programs provided by businesses such as this that provide education and cognitive
growth to their young clients. There is also an optional license for $65k to build another location available
from the seller. The 2nd location is also available to purchase.
- Asking Price: $500,000
- Cash Flow: N/A
- Gross Revenue: $835,180
- EBITDA: N/A
- FF&E: N/A
- Inventory: N/A
- Inventory Included: N/A
- Established: N/A
The real estate is leased by the company for $5,985 per Month
Why is the Current Owner Selling The Business?
There are all kinds of reasons individuals resolve to sell operating businesses. However, the real factor and the one they tell you may be 2 absolutely different things. As an example, they might state "I have way too many various obligations" or "I am retiring". For numerous sellers, these reasons are valid. But, for some, these might simply be justifications to attempt to conceal the reality of altering demographics, increased competition, recent reduction in revenues, or an array of various other reasons. This is why it is very important that you not rely totally on a seller's word, however instead, make use of the vendor's solution in conjunction with your overall due diligence. This will repaint an extra practical image of the business's current scenario.
Existing Debts and Future Obligations
If the existing entity is in debt, which numerous companies are, then you will certainly need to consider this when valuating/preparing your deal. Lots of companies take out loans in order to cover items like supplies, payroll, accounts payable, and so on. Remember that in some cases this can mean that revenue margins are too thin. Numerous businesses fall under a revolving door of taking loans as a way to pay back other loans. Along with debts, there may additionally 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 need to be met or may lead to fines if terminated early.
Understanding the Customer Base, Competition and Area Demographics
How do companies in the location draw in brand-new clients? Many times, companies have repeat consumers, which create the core of their day-to-day revenues. Specific elements such as new competitors sprouting up around the area, road building and construction, and also staff turnover can influence repeat consumers and also negatively impact future revenues. One essential point to take into consideration is the placement of the business. Is it in a very trafficked shopping mall, or is it hidden from the highway? Undoubtedly, the more people that see the business regularly, the greater the opportunity to construct a returning consumer base. A last thought is the general location demographics. Is the business situated in a densely populated city, or is it located on the outside border of town? Just how might the local mean house income influence future income prospects?