Listing ID: 77545
This successful preschool has been in business for over 20+ years. This preschool is an excellent opportunity for someone to bring their own program as this is currently an independent school. It can be converted to a franchise or any program that the new owner wants to bring.
This school is licensed for preschool kids only with 100 licensed capacity. State licensing is required to operate this business so the new owner will need to qualify individually. Business is currently operating with modified operations due to Covid-19, but it is an essential business. Owner is ready to retire from the business and committed to make a smooth transition. This is a highly confidential sale so the prospective buyers need to complete NDA and a buyer profile before any information about the business can be shared. Buyer should be willing to show proof of funds as well.
- Asking Price: $1,500,000
- Cash Flow: $209,064
- Gross Revenue: $939,218
- EBITDA: N/A
- FF&E: N/A
- Inventory: N/A
- Inventory Included: N/A
- Established: N/A
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:10
- Furniture, Fixtures and Equipment:N/A
Why is the Current Owner Selling The Business?
There are all types of reasons individuals resolve to sell businesses. Nevertheless, the real reason and the one they say to you may be 2 totally different things. As an example, they might state "I have too many various responsibilities" or "I am retiring". For numerous sellers, these reasons stand. However, for some, these may just be reasons to try to conceal the reality of altering demographics, increased competitors, recent decrease in earnings, or an array of other reasons. This is why it is really crucial that you not depend totally on a vendor's word, yet rather, use the vendor's solution combined with your total due diligence. This will paint an extra realistic picture of the business's present scenario.
Existing Debts and Future Obligations
If the current company is in debt, which numerous businesses are, then you will certainly have reason to consider this when valuating/preparing your deal. Lots of businesses borrow money with the purpose of covering things like inventory, payroll, accounts payable, and so on. Keep in mind that sometimes this can suggest that revenue margins are too thin. Lots of organisations fall into a revolving door of taking on debt as a way to pay back other loans. Along with debts, there may also be future obligations to take into consideration. 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 satisfied or might result in charges if terminated early.
Understanding the Customer Base, Competition and Area Demographics
How do companies in the location bring in new customers? Many times, companies have repeat consumers, which develop the core of their daily earnings. Certain variables such as brand-new competition growing up around the location, roadway building, and staff turnover can influence repeat consumers and adversely impact future profits. One crucial point to think about is the area of the business. Is it in a very trafficked shopping center, or is it hidden from the main road? Certainly, the more individuals that see the business often, the higher the opportunity to build a returning consumer base. A last thought is the basic area demographics. Is the business located in a densely populated city, or is it situated on the outskirts of town? How might the regional typical house income effect future earnings prospects?