Business Overview

Profitable Preschool in Oakland

Offered Price: $275,000 2020 Revenues: $355,000 2020 SDE: $165,000
2021 Projected Revenue: $323,000, projected SDE: $139,000
Down Payment required: $275,000
Capacity under 30 Location: City of Oakland

This profitable childcare center makes good money and is located in the city of Oakland, California in Alameda County. Business serves children from Two-year-old to Entry into 1st Grade. Enrollment is continuing to increase.

The SDE is the amount one full time working owner-director would have made if they had purchased the business with all cash and leased the property at the specified rent. Business has completely recovered from the COVID-19 is getting close to full.

Business is attractively priced at just 1.7 times 2020 SDE or a little under 2 times projected 2021 SDE for a quick sale. Great opportunity for a lucky buyer.

Buyer would need to personally qualify for a Child Care License.

Ideal buyer is either a director-qualified individual looking to acquire a center of their own or the owner of an existing center looking to expand by acquiring additional centers.

No purchase financing will be available. Hence we are looking for an all cash offer.

Confidentiality of this transaction is paramount. So, if you wish to pursue this opportunity, please complete the confidentiality agreement and Buyer Profile from http://www.acaciagroupinc.com/nda-acacia143.pdf and send them to us. Seller wants to review this information prior to approving Broker’s release of providing details of this opportunity.

Financial

  • Asking Price: $275,000
  • Cash Flow: $139,000
  • Gross Revenue: $323,000
  • EBITDA: N/A
  • FF&E: N/A
  • Inventory: N/A
  • Inventory Included: N/A
  • Established: 2013

Detailed Information

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

Additional Info

The company was established in 2013, making the business 9 years old.

The company has 3 employees and is located in a building with approx. square footage of N/A sq ft.
The real estate is leased by the business for $0.00

Why is the Current Owner Selling The Business?

There are all types of reasons people choose to sell businesses. However, the real factor and the one they tell you might be 2 completely different things. As an example, they may claim "I have a lot of various commitments" or "I am retiring". For many sellers, these factors are valid. But also, for some, these might just be excuses to attempt to hide the reality of changing demographics, increased competitors, recent reduction in incomes, or a variety of other reasons. This is why it is extremely vital that you not depend entirely on a vendor's word, but instead, utilize the vendor's solution in conjunction with your total due diligence. This will repaint a much more sensible image of the business's present scenario.

Existing Debts and Future Obligations

If the current entity is in debt, which lots of businesses are, then you will have reason to consider this when valuating/preparing your offer. Many operating businesses take out loans so as to cover points such as inventory, payroll, accounts payable, and so on. Bear in mind that in some cases this can suggest that earnings margins are too small. Numerous companies fall under a revolving door of taking on debt as a way to pay back various other loans. In addition to debts, there may likewise be future obligations to consider. There may be an outstanding lease on tools or the building where the business resides. The business may have existing contracts with suppliers that should be fulfilled or may result in penalties if terminated early.

Understanding the Customer Base, Competition and Area Demographics

Just how do companies in the location attract new customers? Often times, companies have repeat consumers, which develop the core of their daily earnings. Specific elements such as new competitors sprouting up around the location, roadway building, as well as staff turnover can influence repeat consumers as well as adversely influence future profits. One crucial point to take into consideration is the location of the business. Is it in a very trafficked shopping center, or is it hidden from the highway? Certainly, the more individuals that see the business often, the better the possibility to develop a returning consumer base. A last thought is the basic location demographics. Is the business located in a largely inhabited city, or is it situated on the edge of town? Just how might the local typical household earnings impact future income potential?