Listing ID: 77562
This newly built preschool business offers childcare and educational programs for infants, toddlers, preschooler and after school programs. It is located in a premium school district in the bay area nestled with new neighborhoods with primarily couples and young kids. This buyer can choose to buy the real Bette comes with real estate which is newly built and it’s located on about 1 acre land. In 2019, the owners added 2 new classrooms, so the full revenue and profit potential is not reflected in 2019 financials. Financial model is available to show the potential cashflow based on the increased capacity once NDA has been executed.
This franchise school comes with a proven education system along with experienced directors and teachers. This franchise is in such high demand so it’s normally very difficult to identify real estate and open a new location in the bay area. State licensing is required to operate this business so the new owner will need to qualify individually or be able to hire directors who can get the required license to operate the school. 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: $2,500,000
- Cash Flow: $226,221
- Gross Revenue: $1,967,334
- EBITDA: N/A
- FF&E: N/A
- Inventory: N/A
- Inventory Included: N/A
- Established: 2014
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:15
- Furniture, Fixtures and Equipment:N/A
The company was started in 2014, making the business 8 years old.
Why is the Current Owner Selling The Business?
There are all sorts of reasons why people decide to sell companies. Nevertheless, the true factor and the one they say to you might be 2 totally different things. For instance, they might state "I have a lot of other responsibilities" or "I am retiring". For lots of sellers, these factors are valid. But, for some, these might simply be justifications to attempt to conceal the reality of transforming demographics, increased competitors, recent reduction in profits, or a range of other factors. This is why it is extremely crucial that you not rely totally on a seller's word, yet instead, utilize the seller's answer in conjunction with your general due diligence. This will repaint a much more reasonable image of the business's current circumstance.
Existing Debts and Future Obligations
If the existing entity is in debt, which many businesses are, then you will have reason to consider this when valuating/preparing your deal. Lots of businesses take out loans in order to cover items such as inventory, payroll, accounts payable, and so on. Bear in mind that in some cases this can imply that revenue margins are too small. Many companies fall into a revolving door of taking loans as a way to pay back various other loans. Along with debts, there may also be future commitments to consider. There might be an outstanding lease on tools or the structure where the business resides. The business may have existing agreements with suppliers that should be satisfied or may result in penalties if terminated early.
Understanding the Customer Base, Competition and Area Demographics
How do companies in the location bring in brand-new consumers? Many times, operating businesses have repeat customers, which create the core of their day-to-day profits. Particular factors such as new competitors sprouting up around the area, road building and construction, and also personnel turn over can influence repeat clients and also negatively influence future profits. One crucial point to think about is the area of the business. Is it in a very trafficked shopping mall, or is it concealed from the main road? Clearly, the more individuals that see the business often, the greater the possibility to build a returning client base. A last thought is the general location demographics. Is the business situated in a largely populated city, or is it situated on the edge of town? Just how might the neighborhood mean family earnings influence future earnings potential?