Listing ID: 77225
SOLD ON JAN 28, 2022
Profitable Preschool in San Mateo County
Offered Price: $480,000 2019 Revenues: $477,000 2019 SDE: $177,000
SBA loan possible for well qualified buyer,
Down Payment for an SBA loan: $150,000
Capacity between 30 and 50 Location: San Mateo County
NO BROKER CO-OP AT THIS TIME.
This long established and profitable childcare center is in a very desirable city in San Mateo County. Business serves children from Two-year-old to Entry into 1st Grade. The center is in high demand.
The SDE of $177,000 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 recovered from the COVID-19 slow down and the latest enrollment is close to pre-COVID-19 period of 2019. 2021 September Revenue is higher than the September 2020 and September 2019 revenue.
Business has a waiting list.
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.
SBA loan is possible for well-qualified individuals with good down payment and collateral.
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-acacia140.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: $480,000
- Cash Flow: $177,000
- Gross Revenue: $477,000
- EBITDA: N/A
- FF&E: N/A
- Inventory: N/A
- Inventory Included: N/A
- Established: 1987
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:N/A
- Furniture, Fixtures and Equipment:N/A
High demand for their services in this area.
The company was founded in 1987, making the business 35 years old.
The property is leased by the company for $5,000 per Month
Why is the Current Owner Selling The Business?
There are all sorts of reasons why people choose to sell companies. Nevertheless, the genuine factor and the one they say to you may be 2 completely different things. As an example, they might state "I have too many other commitments" or "I am retiring". For lots of sellers, these factors stand. But, for some, these may simply be reasons to attempt to conceal the reality of transforming demographics, increased competitors, recent decrease in profits, or an array of various other reasons. This is why it is really essential that you not count entirely on a vendor's word, yet instead, make use of the seller's answer combined with your general due diligence. This will repaint a more reasonable picture of the business's existing situation.
Existing Debts and Future Obligations
If the current business is in debt, which lots of companies are, then you will have reason to consider this when valuating/preparing your offer. Many operating businesses take out loans in order to cover things such as supplies, payroll, accounts payable, so on and so forth. Remember that occasionally this can imply that revenue margins are too small. Numerous organisations fall into a revolving door of taking loans as a way to pay back other loans. Along with debts, there may also be future commitments to take into consideration. There might 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 cause charges if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Just how do operating businesses in the location draw in new clients? Often times, companies have repeat consumers, which create the core of their daily revenues. Certain factors such as brand-new competitors sprouting up around the location, roadway building and construction, and also staff turnover can influence repeat consumers as well as negatively influence future revenues. One crucial point to consider is the location of the business. Is it in a highly trafficked shopping mall, or is it hidden from the main road? Obviously, the more individuals that see the business on a regular basis, the higher the possibility to build a returning consumer base. A last thought is the general location demographics. Is the business placed in a densely populated city, or is it located on the outskirts of town? Just how might the neighborhood typical family earnings impact future earnings potential?