Business Overview

Be the next owner of a premiere daycare with after school programs in the northern suburbs of Chicago! Located in an industrial warehouse location, this is a long standing, turnkey business with a highly rated reputation. Staff is well educated, trained, and expected to stay with the transition to new ownership.
As part of due diligence on behalf of the Seller, Broker requires a personal financial statement or formal lender approval be submitted with a Non-Disclosure agreement. A financial statement will be required for each of the parties directly involved in the acquisition to show they are financially qualified to move forward. Contact Broker for details.

Financial

  • Asking Price: $499,000
  • Cash Flow: $212,444
  • Gross Revenue: $657,086
  • EBITDA: N/A
  • FF&E: N/A
  • Inventory: N/A
  • Inventory Included: N/A
  • Established: N/A
Purpose For Selling:

family

Why is the Current Owner Selling The Business?

There are all types of reasons why people choose to sell operating businesses. Nonetheless, the genuine factor and the one they tell you may be 2 absolutely different things. For instance, they might state "I have a lot of other obligations" or "I am retiring". For numerous sellers, these reasons stand. However, for some, these might simply be excuses to attempt to conceal the reality of transforming demographics, increased competition, current reduction in incomes, or an array of various other factors. This is why it is really crucial that you not count entirely on a seller's word, however rather, make use of the vendor's answer together with your total due diligence. This will repaint a more practical picture of the business's current situation.

Existing Debts and Future Obligations

If the current company is in debt, which lots of businesses are, then you will certainly need to consider this when valuating/preparing your offer. Numerous businesses take out loans so as to cover items like supplies, payroll, accounts payable, and so on. Bear in mind that in some cases this can imply that profit margins are too tight. Many companies come under a revolving door of taking on debt as a way to pay back various other loans. In addition to debts, there may also be future commitments to think about. There may be an outstanding lease on tools or the structure where the business resides. The business might have existing agreements with suppliers that need to be satisfied or may cause charges if terminated early.

Understanding the Customer Base, Competition and Area Demographics

How do businesses in the area attract new customers? Often times, businesses have repeat customers, which develop the core of their everyday profits. Certain factors such as new competitors growing up around the area, roadway building, and also personnel turnover can impact repeat consumers as well as negatively influence future profits. One crucial thing to take into consideration is the area of the business. Is it in a highly trafficked shopping center, or is it concealed from the main road? Clearly, the more individuals that see the business on a regular basis, the better the chance to construct a returning customer base. A final idea is the general area demographics. Is the business placed in a largely inhabited city, or is it located on the edge of town? Exactly how might the local median family earnings influence future income potential?