Listing ID: 77206
Preschool for sale in N. Santa Clara County
Offered Price: $150,000 2019 Revenues: $300,000 2019 SDE: $120,000
Down Payment required: $150,000
Capacity under 30 Location: Santa Clara County
This business is in a city with good demand for childcare. In 2019, the business had annual revenue of $300,000. It is employee run. With a full-time working owner, the business should be able to achieve the same revenue and profitability as 2019.
The center serves children from 2 years old to pre-K.
Business is attractively priced at about half the price of what it would be based on 2019 revenue and profit level. Due to Covid-19, center was closed for a long period in 2020 and early 2021. The enrollment is slowly building back up. It is a great opportunity for an owner-operator, to take charge and bring it back to 2019 level.
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-acacia144.pdf and send them to us. Seller wants to review this information prior to approving Broker’s release of providing details of this opportunity.
- Asking Price: $150,000
- Cash Flow: $120,000
- Gross Revenue: $300,000
- EBITDA: N/A
- FF&E: N/A
- Inventory: N/A
- Inventory Included: N/A
- Established: N/A
The building is leased by the business for $0.00
Why is the Current Owner Selling The Business?
There are all kinds of reasons people decide to sell companies. Nevertheless, the real reason and the one they tell you may be 2 entirely different things. For instance, they might claim "I have way too many other responsibilities" or "I am retiring". For lots of sellers, these reasons are valid. But, for some, these may just be excuses to try to hide the reality of transforming demographics, increased competition, recent reduction in incomes, or a variety of other factors. This is why it is really important that you not depend completely on a vendor's word, yet rather, make use of the seller's response together with your general due diligence. This will paint a much more practical picture of the business's current circumstance.
Existing Debts and Future Obligations
If the current business is in debt, which lots of businesses are, then you will certainly need to consider this when valuating/preparing your deal. Numerous companies borrow money in order to cover items like inventory, payroll, accounts payable, etc. Remember that sometimes this can imply that profit margins are too small. Numerous companies fall under a revolving door of taking on debt as a way to pay back other loans. Along with debts, there may additionally be future obligations to consider. There may be an outstanding lease on equipment or the structure where the business resides. The business might have existing contracts with suppliers that have to be fulfilled or may result in charges if terminated early.
Understanding the Customer Base, Competition and Area Demographics
How do businesses in the location draw in new customers? Often times, businesses have repeat customers, which form the core of their everyday revenues. Certain aspects such as new competition sprouting up around the location, road building, as well as personnel turn over can influence repeat consumers as well as adversely affect future profits. One vital thing to take into consideration is the area of the business. Is it in an extremely trafficked shopping mall, or is it hidden from the main road? Certainly, the more individuals that see the business often, the greater the chance to build a returning client base. A final idea is the basic location demographics. Is the business located in a largely inhabited city, or is it located on the outskirts of town? Exactly how might the neighborhood typical family earnings influence future income prospects?