Business Overview

Profitable, well established childcare center, licensed for 40+children from ages 6 weeks to 12 years, with solid clientele and staff. Enrolled to capacity with waiting list of families wanting to enroll. Purchase price includes real estate and all business assets as well as clientele base. This childcare center is ranked as one of the top in the state under Nebraska’s Step Up to Quality rating scale. Well qualified, consistent and respected staff who put lots of fun into learning.

Financial

  • Asking Price: $225,000
  • Cash Flow: $42,000
  • Gross Revenue: $170,000
  • EBITDA: $42,000
  • FF&E: N/A
  • Inventory: N/A
  • Inventory Included: N/A
  • Established: N/A

Detailed Information

  • Property Owned or Leased:Own
  • Property Included:Yes
  • Building Square Footage:N/A
  • Lot Size:N/A
  • Total Number of Employees:N/A
  • Furniture, Fixtures and Equipment:N/A

Why is the Current Owner Selling The Business?

There are all kinds of reasons why people choose to sell companies. However, the genuine factor vs the one they tell you may be 2 entirely different things. As an example, they might say "I have a lot of various responsibilities" or "I am retiring". For lots of sellers, these reasons stand. But also, for some, these might just be justifications to attempt to hide the reality of altering demographics, increased competition, current reduction in incomes, or a range of various other reasons. This is why it is extremely essential that you not count totally on a vendor's word, but instead, utilize the seller's answer along with your overall due diligence. This will paint a more sensible picture of the business's current circumstance.

Existing Debts and Future Obligations

If the current company is in debt, which lots of companies are, then you will certainly need to consider this when valuating/preparing your deal. Numerous businesses borrow money with the purpose of covering items like inventory, payroll, accounts payable, etc. Remember that occasionally this can indicate that earnings margins are too small. Lots of organisations fall under a revolving door of taking on debt as a way to pay back various other loans. Along with debts, there may likewise be future commitments to think about. There might be an outstanding lease on tools or the building where the business resides. The business may have existing contracts with vendors that need to be satisfied or may cause charges if terminated early.

Understanding the Customer Base, Competition and Area Demographics

Exactly how do businesses in the location draw in brand-new customers? Most times, operating businesses have repeat customers, which create the core of their daily revenues. Particular factors such as new competition sprouting up around the area, road construction, and employee turnover can affect repeat clients as well as adversely influence future profits. One crucial thing to think about is the location of the business. Is it in a highly trafficked shopping center, or is it concealed from the main road? Obviously, the more people that see the business often, the higher the opportunity to construct a returning consumer base. A last thought is the general location demographics. Is the business placed in a densely inhabited city, or is it situated on the edge of town? Just how might the regional median house earnings effect future income prospects?