Business Overview

Childcare Center with Real Estate established 25 Years. Rural location about 30 minutes from Louisville. Capacity 70 children. Seller is administrator and willing to transition.
Great location, easy access. Sales at 290,000 per year. Cash flow 60,000 per year. Real Estate valued at 250,000. Asking price is $45,000 plus real estate of $250,000

Reply to BJ Nichol, Louisville Business Brokers, BJ@RidgemoorGroup.com

Financial

  • Asking Price: $45,000
  • Cash Flow: $60,000
  • Gross Revenue: $290,000
  • EBITDA: N/A
  • FF&E: N/A
  • Inventory: N/A
  • Inventory Included: Yes
  • Established: 1995

Detailed Information

  • Property Owned or Leased:Own
  • Property Included:N/A
  • Building Square Footage:20,000
  • Lot Size:N/A
  • Total Number of Employees:20
  • Furniture, Fixtures and Equipment:N/A
Is Support & Training Included:

Yes full Support and Transition

Purpose For Selling:

Retirement

Additional Info

The company was started in 1995, making the business 27 years old.

The company has 20 employees and is located in a building with disclosed square footage of 20,000 sq ft.

Why is the Current Owner Selling The Business?

There are all kinds of reasons why individuals resolve to sell operating businesses. However, the true reason and the one they tell you might be 2 entirely different things. As an example, they might claim "I have a lot of other commitments" or "I am retiring". For many sellers, these reasons stand. However, for some, these might simply be excuses to try to conceal the reality of altering demographics, increased competition, recent decrease in revenues, or a range of other factors. This is why it is very crucial that you not rely totally on a seller's word, yet instead, use the vendor's solution together with your total due diligence. This will repaint a much more practical picture of the business's present circumstance.

Existing Debts and Future Obligations

If the existing entity is in debt, which lots of businesses are, then you will have reason to consider this when valuating/preparing your deal. Lots of companies take out loans so as to cover things like stock, payroll, accounts payable, etc. Remember that sometimes this can imply that profit margins are too tight. 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 likewise be future commitments to take into consideration. There may be an outstanding lease on equipment or the building where the business resides. The business may have existing contracts with vendors that should be met or may lead to fines if terminated early.

Understanding the Customer Base, Competition and Area Demographics

How do operating businesses in the location bring in new consumers? Many times, companies have repeat customers, which develop the core of their everyday revenues. Specific factors such as new competition growing up around the area, road construction, and also personnel turnover can impact repeat clients and also negatively affect future profits. One crucial thing to take into consideration is the location of the business. Is it in a highly trafficked shopping center, or is it hidden from the highway? Obviously, the more individuals that see the business regularly, the better the opportunity to build a returning client base. A last thought is the basic area demographics. Is the business placed in a densely inhabited city, or is it situated on the edge of town? Exactly how might the neighborhood typical house earnings effect future income prospects?