Listing ID: 81565
Well-established (nearly two decades) preschool and day care center in southwestern Chicagoland suburbs is ready for its next owner.
Key Investment Considerations:
* Compound annual revenue growth, 2018 through 2021, of over 15 percent.
* 80 registered students, aged 6 months to 6 years.
* Experienced staff includes executive director, office manager, four licensed teachers and three substitute/assistant teachers.
* Includes real estate with 6,000 square foot stand alone building and parking to accommodate 20 cars.
* Facility is large enough to accommodate increased enrollment without the need for additional capital allocation.
* Appeals to families looking for a local, personal approach to fulfilling childcare needs.
Established in 2003 as a part-time preschool program. Shortly thereafter a drop off program was added along with Saturday nights to cater to ‘parents night out.’
By 2018, it became a full-time child care center.
The center provides a variety of programs whose primary goal is to encourage exploration of the world while developing skills and a love of learning.
All of its programs are designed to emphasize the development of each child as an individual.
The center builds on the child’s strengths and provide them with the opportunity to experience success through appropriate goal setting.
There are a number of centers that cater to the same preschool children but many of them are characterized as ‘Big Box’ type establishments. What sets this center apart is that it is family-focused, concentrating on the developmental needs of each child with parental input in mind.
‘Caring, loving and involved,’ are frequent words from parents’ testimonials from yelp!, where it has a 4.5 out of 5 star comprehensive rating.
A greater marketing emphasis would, in the owner’s mind, provide an opportunity for further growth.
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- Asking Price: $1,400,000
- Cash Flow: $175,850
- Gross Revenue: $648,500
- EBITDA: N/A
- FF&E: N/A
- Inventory: N/A
- Inventory Included: N/A
- Established: 2003
- Property Owned or Leased:Own
- Property Included:Yes
- Building Square Footage:6,092
- Lot Size:N/A
- Total Number of Employees:10
- Furniture, Fixtures and Equipment:N/A
The venture was established in 2003, making the business 19 years old.
The business has 10 employees and resides in a building with estimated square footage of 6,092 sq ft.
Why is the Current Owner Selling The Business?
There are all sorts of reasons why individuals decide to sell businesses. Nonetheless, the genuine factor and the one they tell you may be 2 totally different things. As an example, they might say "I have too many other commitments" or "I am retiring". For numerous sellers, these reasons stand. However, for some, these might simply be reasons to attempt to conceal the reality of transforming demographics, increased competitors, current reduction in incomes, or a range of various other factors. This is why it is very vital that you not count absolutely on a seller's word, yet instead, make use of the vendor's response combined with your overall due diligence. This will repaint an extra realistic image of the business's current scenario.
Existing Debts and Future Obligations
If the existing business is in debt, which lots of companies are, then you will certainly have reason to consider this when valuating/preparing your deal. Lots of operating businesses borrow money in order to cover items such as supplies, payroll, accounts payable, etc. Bear in mind that sometimes this can imply that profit margins are too tight. Many organisations fall under a revolving door of taking loans as a way to pay back other loans. Along with debts, there may likewise be future obligations to consider. There may be an outstanding lease on tools or the structure where the business resides. The business may have existing agreements with vendors that need to be met or might lead to charges if terminated early.
Understanding the Customer Base, Competition and Area Demographics
How do companies in the location draw in brand-new customers? Often times, operating businesses have repeat customers, which develop the core of their day-to-day profits. Specific aspects such as brand-new competition sprouting up around the location, road building and construction, and also staff turn over can influence repeat customers and also adversely affect future incomes. One vital thing to take into consideration is the area of the business. Is it in a very trafficked shopping mall, or is it concealed from the main road? Obviously, the more people that see the business regularly, the better the possibility to build a returning consumer base. A final thought is the basic area demographics. Is the business located in a densely populated city, or is it situated on the outside border of town? Just how might the neighborhood mean house earnings influence future earnings potential?