Listing ID: 73491
Daycare Center and Preschool with a stellar reputation and well recognized in its NW Ohio city for nearly two decades. Provides Infants, Toddlers, Wee School, Preschool, PreK, After School, and Meal Programs to a typical census in the 80s. Currently about 90% private pay and 10% subsidized government pay.
- Asking Price: $225,000
- Cash Flow: $100,000
- Gross Revenue: $500,000
- EBITDA: $100,000
- FF&E: $100,000
- Inventory: $2,500
- Inventory Included: Yes
- Established: 2002
- Property Owned or Leased:Own
- Property Included:N/A
- Building Square Footage:4,000
- Lot Size:N/A
- Total Number of Employees:16
- Furniture, Fixtures and Equipment:N/A
One story 4,000 sq ft handicap accessible building with large circular drive in front for drop off and pick up + parking lot on side and 2 separate playgrounds in back. Divided rooms, office and kitchen all in great outfitted condition.
Well educated & trained staff with an Administrator in place to continue on without the current owner. The current owner will provide transition, training and support as reasonably requested.
In a great location without competition of its caliber.
Facility can currently accept some additional students + owner owns adjacent property for expansion.
The venture was established in 2002, making the business 20 years old.
The deal shall include inventory valued at $2,500, which is included in the asking price.
The company has 16 employees and is situated in a building with estimated square footage of 4,000 sq ft.
Why is the Current Owner Selling The Business?
There are all kinds of reasons individuals resolve to sell companies. However, the real reason and the one they say to you might be 2 totally different things. As an example, they may state "I have too many other obligations" or "I am retiring". For numerous sellers, these factors stand. But, for some, these may just be reasons to attempt to conceal the reality of changing demographics, increased competitors, current reduction in earnings, or an array of other reasons. This is why it is very important that you not count entirely on a vendor's word, yet rather, use the vendor's solution along with your overall due diligence. This will paint an extra realistic image of the business's existing situation.
Existing Debts and Future Obligations
If the current company is in debt, which many businesses are, then you will need to consider this when valuating/preparing your offer. Many companies borrow money with the purpose of covering points like inventory, payroll, accounts payable, etc. Bear in mind that in some cases this can indicate that earnings margins are too thin. Lots of companies fall under a revolving door of taking loans as a way to pay back various other loans. In addition to debts, there may also be future obligations to think about. There might be an outstanding lease on tools or the building where the business resides. The business may have existing agreements with vendors that should be fulfilled or may lead to charges if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do operating businesses in the area bring in brand-new customers? Many times, companies have repeat clients, which form the core of their everyday earnings. Specific factors such as brand-new competitors sprouting up around the location, roadway construction, as well as staff turnover can affect repeat clients and negatively affect future profits. One essential thing to think about is the location of the business. Is it in a very trafficked shopping center, or is it hidden from the highway? Undoubtedly, the more individuals that see the business on a regular basis, the better the possibility to construct a returning consumer base. A final thought is the general area demographics. Is the business located in a densely populated city, or is it situated on the outside border of town? Just how might the regional median family earnings effect future earnings potential?