Listing ID: 76389
Preschool and childcare center for sale in Denver, Colorado, that provides high quality daycare and preschool for children aged one to six. Long established, very profitable center that has a childcare licensed for 50 children per day, ages one to seven years. Located in the basement of a church, from whom they rent space, they are always fully enrolled with a significant waitlist! Additional space and new programs offer tons of growth opportunities for a buyer!
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- Asking Price: $286,550
- Cash Flow: $143,275
- Gross Revenue: $545,786
- EBITDA: N/A
- FF&E: $30,000
- Inventory: N/A
- Inventory Included: Yes
- Established: 1988
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:9
- Furniture, Fixtures and Equipment:N/A
2,000 S.F. in a church.
The business was started in 1988, making the business 34 years old.
Why is the Current Owner Selling The Business?
There are all kinds of reasons individuals choose to sell operating businesses. Nonetheless, the genuine reason and the one they say to you might be 2 entirely different things. As an example, they may claim "I have a lot of various commitments" or "I am retiring". For numerous sellers, these reasons stand. But also, for some, these may simply be excuses to attempt to hide the reality of changing demographics, increased competitors, recent reduction in earnings, or a variety of various other reasons. This is why it is extremely essential that you not rely entirely on a vendor's word, but instead, utilize the seller's solution in conjunction with your total due diligence. This will repaint a much more sensible image of the business's present circumstance.
Existing Debts and Future Obligations
If the current business is in debt, which numerous companies are, then you will certainly have reason to consider this when valuating/preparing your offer. Many operating businesses borrow money so as to cover things like inventory, payroll, accounts payable, etc. Keep in mind that in some cases 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 might have existing agreements with vendors that must be met or may result in penalties if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do businesses in the location attract new customers? Most times, operating businesses have repeat clients, which create the core of their daily earnings. Certain elements such as new competition growing up around the location, roadway construction, and staff turnover can impact repeat consumers and adversely impact future incomes. One essential thing to consider is the location of the business. Is it in a very trafficked shopping mall, or is it concealed from the main road? Certainly, the more people that see the business on a regular basis, the greater the opportunity to construct 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 outside border of town? Exactly how might the neighborhood average household earnings effect future earnings prospects?