Business Overview

Well-established infant-Pre-K childcare facility has served its community since 2006 and offers a new owner several investment opportunities. The current owner has built a strong foundation and is ready to retire. In addition to the childcare business details below, the sale also offers a potential buyer a profitable real estate investment. 2022 will be there best year yet as successful childcare businesses have shown they are a critical part of every community.

Contact Scott Davis at sdavis@tworld.com to learn more.

Childcare Center Details:
• 2-star childcare facility certified for 70+ children
• Fully staffed with qualified director
• Subsidized by DHS and Cherokee Nation
o Cook on staff who handles government backed food program
• Opportunity to expand into summer and after-school programs
• Well-maintained and newly renovated facility 6,000 sq. ft. facility on a 1-acre lot
Includes a shelter/safe room and fenced-in playground

Real Estate Details:
• Included for $500,000
• Built in 2003
• Owner reinvests profits to continually improve the property (e.g. new floors, update AC units, newer kitchen appliances)

Financial

  • Asking Price: $650,000
  • Cash Flow: $110,000
  • Gross Revenue: $680,000
  • EBITDA: N/A
  • FF&E: $30,000
  • Inventory: N/A
  • Inventory Included: N/A
  • Established: 2006

Detailed Information

  • Property Owned or Leased:Own
  • Property Included:Yes
  • Building Square Footage:6,000
  • Lot Size:N/A
  • Total Number of Employees:16
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

6000 square feet with fenced outdoor playground

Is Support & Training Included:

2 weeks at 0 cost

Purpose For Selling:

Retirement

Opportunities and Growth:

Huge Growth opportunity for additional revenue to add before/after care for school aged children.

Additional Info

The company was started in 2006, making the business 16 years old.

The business has 16 employees and is situated in a building with estimated square footage of 6,000 sq ft.

Why is the Current Owner Selling The Business?

There are all types of reasons individuals choose to sell companies. Nonetheless, the true reason vs the one they tell you may be 2 completely different things. As an example, they may say "I have way too many other commitments" or "I am retiring". For many sellers, these factors are valid. But also, for some, these may simply be reasons to try to hide the reality of changing demographics, increased competition, current reduction in profits, or a variety of other reasons. This is why it is very important that you not depend completely on a seller's word, however instead, use the vendor's solution combined with your overall due diligence. This will repaint an extra practical image of the business's current situation.

Existing Debts and Future Obligations

If the existing company is in debt, which many companies are, then you will need to consider this when valuating/preparing your offer. Numerous businesses finance loans in order to cover things like stock, payroll, accounts payable, and so on. Keep in mind that occasionally this can imply that earnings margins are too small. Many companies come under a revolving door of taking loans as a way to pay back various other loans. Along with debts, there may also be future commitments to consider. There might be an outstanding lease on equipment or the building where the business resides. The business might have existing contracts with suppliers that need to be met or may lead to penalties if terminated early.

Understanding the Customer Base, Competition and Area Demographics

How do companies in the area attract brand-new consumers? Many times, companies have repeat consumers, which form the core of their day-to-day profits. Particular aspects such as new competitors sprouting up around the location, roadway building, and staff turn over can influence repeat customers as well as negatively affect future revenues. One vital thing to think about is the area of the business. Is it in an extremely trafficked shopping center, or is it concealed from the highway? Clearly, the more people that see the business regularly, the greater the chance to build a returning client base. A last idea is the basic area demographics. Is the business located in a densely populated city, or is it located on the edge of town? How might the regional mean family earnings effect future earnings potential?