Listing ID: 73599
This established Child Daycare Center has been part of the community for more than 20 years. The Daycare Center is 1-STAR rated and is located in a high traffic area of town and consists of 50% private pay. This Daycare Center receives payment through ODJFS and is enrolled in the Food Program. Because of the confidentiality of this listing, proof of funds, or findability is required, along with a signed Non-Disclosure Agreement (NDA). Please refer to listing 84541-915199 and advisor Pat Bass when inquiring on this listing.
- Asking Price: $245,000
- Cash Flow: $67,985
- Gross Revenue: $267,061
- EBITDA: N/A
- FF&E: $50,000
- Inventory: $1,000
- Inventory Included: Yes
- Established: 2004
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:4
- Furniture, Fixtures and Equipment:N/A
Type of Location Facilities Monthly Rent $3,000.00 Square Units (Foot, Meter) 4,000 Lease Expiration Date Terms Options Month to Month
Seller will train for 13 weeks at no cost.
The venture was started in 2004, making the business 18 years old.
The deal will include inventory valued at $1,000, which is included in the asking price.
Why is the Current Owner Selling The Business?
There are all sorts of reasons individuals resolve to sell businesses. However, the real factor and the one they tell you may be 2 entirely different things. As an example, they might claim "I have too many other commitments" or "I am retiring". For many sellers, these reasons stand. But also, for some, these might simply be justifications to attempt to hide the reality of changing demographics, increased competition, current decrease in incomes, or a range of other factors. This is why it is very crucial that you not depend entirely on a vendor's word, yet instead, use the vendor's solution combined with your total due diligence. This will paint a more reasonable image of the business's existing situation.
Existing Debts and Future Obligations
If the current business is in debt, which lots of companies are, then you will certainly need to consider this when valuating/preparing your deal. Lots of businesses finance loans so as to cover things such as supplies, payroll, accounts payable, so on and so forth. Bear in mind that occasionally this can imply that profit margins are too tight. Lots of organisations fall into 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 consider. There may be an outstanding lease on equipment or the building where the business resides. The business may have existing agreements with suppliers that have to be satisfied or might result in fines if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Just how do companies in the area bring in brand-new clients? Often times, businesses have repeat clients, which create the core of their day-to-day revenues. Certain variables such as brand-new competition sprouting up around the location, road construction, and also employee turnover can impact repeat clients and also negatively affect future earnings. One vital thing to think about is the placement of the business. Is it in a very trafficked shopping center, or is it concealed from the highway? Undoubtedly, the more individuals that see the business often, the higher the possibility to build a returning consumer base. A final idea is the basic area demographics. Is the business located in a densely populated city, or is it situated on the edge of town? How might the neighborhood average home earnings influence future earnings prospects?