Business Overview

SALE PENDING Located in Southern Colorado, this well-established, well-known, childcare center has been serving families in the community for decades; it is licensed as a large childcare center (ages 3-7) offering Montessori-based learning in their custom-built schoolhouse. Currently operating 5 days per week, Labor Day through Memorial Day, this center offers before and after care and half day and full day programs. The facility is to be purchased with the business for an additional $480,000. The building features an outdoor playground, with a lot size suitable for expanding the building and doubling the school’s capacity. The sale includes all furniture, fixtures, and equipment (teaching materials). We believe this would be an opportunity for someone seeking to start their own Montessori School at this location and for an existing operation to add to their portfolio of childcare centers.

Financial

  • Asking Price: $195,000
  • Cash Flow: $128,771
  • Gross Revenue: $272,709
  • EBITDA: N/A
  • FF&E: $29,200
  • Inventory: N/A
  • Inventory Included: N/A
  • Established: 1995

Detailed Information

  • Property Owned or Leased:Own
  • Property Included:N/A
  • Building Square Footage:3,000
  • Lot Size:N/A
  • Total Number of Employees:7
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

3,000 SQ FT. Custom-built schoolhouse, features an outdoor playground, with ample parking

Purpose For Selling:

Owner wishes to retire

Additional Info

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

The business has 7 employees and resides in a building with approx. square footage of 3,000 sq ft.

Why is the Current Owner Selling The Business?

There are all types of reasons why people decide to sell companies. Nevertheless, the genuine factor vs the one they tell you might be 2 completely different things. For instance, they may state "I have a lot of other commitments" or "I am retiring". For lots of sellers, these reasons stand. However, for some, these might just be reasons to try to conceal the reality of altering demographics, increased competitors, current decrease in revenues, or a range of various other reasons. This is why it is extremely crucial that you not count entirely on a vendor's word, but rather, use the vendor's solution in conjunction with your total due diligence. This will repaint a more realistic image of the business's present circumstance.

Existing Debts and Future Obligations

If the current business is in debt, which many companies are, then you will certainly need to consider this when valuating/preparing your offer. Lots of companies borrow money with the purpose of covering items such as stock, payroll, accounts payable, and so on. Remember that occasionally this can suggest that profit margins are too thin. Numerous businesses fall into a revolving door of taking on debt as a way to pay back other loans. In addition to debts, there may also be future commitments to consider. There might be an outstanding lease on equipment or the structure where the business resides. The business may have existing contracts with vendors that need to be satisfied or might result in penalties if canceled early.

Understanding the Customer Base, Competition and Area Demographics

Exactly how do businesses in the area bring in brand-new customers? Often times, businesses have repeat consumers, which create the core of their day-to-day revenues. Specific elements such as new competition sprouting up around the area, roadway building, as well as staff turnover can impact repeat clients as well as negatively impact future incomes. One crucial point to think about is the area of the business. Is it in an extremely trafficked shopping center, or is it concealed from the main road? Undoubtedly, the more individuals that see the business often, the better the chance to build a returning client base. A last thought is the basic area demographics. Is the business located in a largely inhabited city, or is it situated on the outside border of town? Exactly how might the local median house earnings influence future income potential?