Listing ID: 76007
This is an Outstanding Opportunity to walk into a well-established, turnkey, profitable business in the fun and rewarding day/childcare industry. This long time center is in a great location, and is Well-respected in the community, with a steady stream of wonderful children to be part of the Center. Fantastic Staff want to stay. Make a great income while providing a valuable service. For additional information please contact listing agent Thomas Vondell at 845-389-2599 or email@example.com.
- Asking Price: $275,000
- Cash Flow: $55,848
- Gross Revenue: $316,539
- EBITDA: N/A
- FF&E: $39,750
- Inventory: N/A
- Inventory Included: N/A
- Established: 2003
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:10
- Furniture, Fixtures and Equipment:N/A
This is a leased location of 2,300 square feet with a Total Rent of $2,500. Lease ends 4/2022. Seller is active in the business with 6 FT employees and 4 PT employees. Hours of operation are 7 AM to 5 PM, Monday - Friday. $39,750 in FF&E included in Asking Price. New York State Child Care Center License Required.
The venture was started in 2003, making the business 19 years old.
Why is the Current Owner Selling The Business?
There are all types of reasons why people choose to sell companies. Nevertheless, the genuine reason and the one they tell you may be 2 completely different things. As an example, they may say "I have a lot of various commitments" or "I am retiring". For lots of sellers, these reasons stand. But, for some, these might just be reasons to try to conceal the reality of transforming demographics, increased competitors, current reduction in earnings, or a range of various other reasons. This is why it is extremely essential that you not rely completely on a seller's word, yet rather, use the vendor's answer combined with your overall due diligence. This will paint a more reasonable picture of the business's existing situation.
Existing Debts and Future Obligations
If the current entity is in debt, which numerous businesses are, then you will have reason to consider this when valuating/preparing your deal. Many companies borrow money with the purpose of covering items like inventory, payroll, accounts payable, so on and so forth. Remember that sometimes this can mean that revenue margins are too tight. Numerous companies fall under a revolving door of taking loans as a way to pay back various other loans. Along with debts, there may likewise be future obligations to think about. There might be an outstanding lease on equipment or the structure where the business resides. The business may have existing contracts with vendors that have to be satisfied or may cause fines if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Just how do operating businesses in the area bring in new customers? Often times, companies have repeat customers, which form the core of their everyday revenues. Specific variables such as brand-new competitors growing up around the area, roadway building and construction, and also employee turnover can impact repeat customers and also adversely affect future incomes. One important thing to take into consideration is the area of the business. Is it in a very trafficked shopping center, or is it hidden from the highway? Clearly, the more individuals that see the business on a regular basis, the greater the chance to build a returning client base. A last idea is the general location demographics. Is the business placed in a largely inhabited city, or is it situated on the outskirts of town? How might the local mean household income effect future earnings prospects?