Listing ID: 81283
THIS CHILD CARE BUSINESS HAS BEEN AROUND FOR DECADES WITH GENERATIONAL CLIENTS
OPPORTUNITY TO GROW AND EXPAND THIS CHILD CARE BUSINESS
REAL ESTATE INCLUDED
- Asking Price: $599,999
- Cash Flow: N/A
- Gross Revenue: $180,000
- EBITDA: $60,000
- FF&E: $50,000
- Inventory: $60,000
- Inventory Included: Yes
- Established: 1998
- Property Owned or Leased:Own
- Property Included:Yes
- Building Square Footage:1,250
- Lot Size:N/A
- Total Number of Employees:4
- Furniture, Fixtures and Equipment:N/A
can open 24 hours and triple the income
This Business Is Home Based
The company was started in 1998, making the business 24 years old.
The transaction does include inventory valued at $60,000, which is included in the asking price.
The company has 4 employees and resides in a building with disclosed square footage of 1,250 sq ft.
Why is the Current Owner Selling The Business?
There are all kinds of reasons why individuals choose to sell businesses. Nevertheless, the genuine reason and the one they tell you may be 2 totally different things. For instance, they may say "I have too many other obligations" or "I am retiring". For many sellers, these factors stand. However, for some, these might just be justifications to attempt to hide the reality of changing demographics, increased competitors, current reduction in profits, or a variety of various other factors. This is why it is really important that you not depend completely on a seller's word, yet instead, utilize the seller's answer along with your overall due diligence. This will paint a much more reasonable image of the business's existing circumstance.
Existing Debts and Future Obligations
If the existing company is in debt, which many companies are, then you will have reason to consider this when valuating/preparing your offer. Many companies borrow money in order to cover points such as supplies, payroll, accounts payable, and so on. Remember that occasionally this can indicate that profit margins are too tight. Numerous businesses come under a revolving door of taking on debt as a way to pay back other loans. In addition to debts, there may additionally be future obligations to consider. There may be an outstanding lease on equipment or the building where the business resides. The business may have existing agreements with vendors that need to be satisfied or might cause fines if terminated early.
Understanding the Customer Base, Competition and Area Demographics
How do businesses in the location attract new clients? Many times, businesses have repeat consumers, which form the core of their daily profits. Specific variables such as new competition growing up around the area, road building, and employee turnover can impact repeat clients as well as negatively affect future earnings. One vital thing to think about is the placement of the business. Is it in an extremely trafficked shopping center, or is it concealed from the highway? Clearly, the more people that see the business on a regular basis, the greater the opportunity to construct a returning customer base. A last idea is the general location demographics. Is the business placed in a largely populated city, or is it situated on the outside border of town? Just how might the neighborhood mean family earnings impact future income potential?