Business Overview

UNDER CONTRACT!! Listing includes four daycares / preschool with real estate for sale. All centers are within 2.5 miles of each other and operate in free-standing buildings. Ample parking at all locations. The businesses are highly profitable with a loyal customer base and, in some cases, spanning generations. Staff is highly educated, trained, and expected to stay with the transition to new ownership. A Non-disclosure Agreement and Buyer Profile, including financials, is required. Contact Broker for more details.

Financial

  • Asking Price: $6,800,000
  • Cash Flow: $1,344,788
  • Gross Revenue: $4,414,724
  • EBITDA: N/A
  • FF&E: N/A
  • Inventory: N/A
  • Inventory Included: N/A
  • Established: N/A
Purpose For Selling:

retirement

Why is the Current Owner Selling The Business?

There are all kinds of reasons why people choose to sell businesses. However, the real reason vs the one they tell you might be 2 totally different things. For instance, they may state "I have way too many other obligations" or "I am retiring". For lots of sellers, these reasons stand. But also, for some, these might simply be reasons to attempt to hide the reality of changing demographics, increased competitors, current reduction in profits, or an array of other factors. This is why it is really crucial that you not count completely on a seller's word, however rather, use the vendor's answer combined with your general due diligence. This will repaint a much more sensible image of the business's current circumstance.

Existing Debts and Future Obligations

If the existing entity is in debt, which lots of businesses are, then you will have reason to consider this when valuating/preparing your deal. Numerous operating businesses finance loans in order to cover points such as supplies, payroll, accounts payable, and so on. Bear in mind that in some cases this can suggest that profit margins are too small. Lots of businesses fall into a revolving door of taking on debt as a way to pay back various other loans. Along with debts, there may additionally be future commitments to consider. There might be an outstanding lease on equipment or the structure where the business resides. The business may have existing agreements with suppliers that have to be satisfied or might cause charges if terminated early.

Understanding the Customer Base, Competition and Area Demographics

Exactly how do businesses in the location attract brand-new customers? Many times, companies have repeat consumers, which develop the core of their daily earnings. Certain elements such as brand-new competitors sprouting up around the location, road building, as well as personnel turn over can impact repeat consumers and negatively influence future revenues. One essential thing to consider is the area of the business. Is it in a very trafficked shopping mall, or is it hidden from the main road? Certainly, the more people that see the business regularly, the better the opportunity to develop a returning consumer base. A final thought is the general location demographics. Is the business situated in a densely inhabited city, or is it situated on the outside border of town? Exactly how might the local mean household income impact future income potential?