Listing ID: 83030
This is an excellent chance to own a childcare center located between Cypress and Katy, Texas. This wonderful school has NCI & the food program. Great director in place. Call Ann for more details.
- Asking Price: $1,350,000
- Cash Flow: $120,000
- Gross Revenue: N/A
- EBITDA: N/A
- FF&E: N/A
- Inventory: N/A
- Inventory Included: N/A
- Established: N/A
Seller will train new owner for 1 month.
Why is the Current Owner Selling The Business?
There are all sorts of reasons individuals resolve to sell businesses. Nonetheless, the genuine reason vs the one they tell you might be 2 absolutely different things. As an example, they may say "I have a lot of other responsibilities" or "I am retiring". For numerous sellers, these reasons stand. But, for some, these might just be justifications to attempt to conceal the reality of transforming demographics, increased competition, recent reduction in revenues, or an array of other reasons. This is why it is really crucial that you not count completely on a seller's word, yet rather, make use of the vendor's solution in conjunction with your total due diligence. This will repaint a more sensible image of the business's current scenario.
Existing Debts and Future Obligations
If the current entity is in debt, which lots of businesses are, then you will certainly have reason to consider this when valuating/preparing your offer. Lots of companies take out loans in order to cover things such as inventory, payroll, accounts payable, and so on. Keep in mind that in some cases this can imply that profit margins are too thin. Many businesses come under a revolving door of taking loans as a way to pay back other loans. In addition to debts, there may also be future obligations to take into consideration. There may be an outstanding lease on tools or the building where the business resides. The business may have existing agreements with vendors that have to be satisfied or might cause fines if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Just how do companies in the area bring in new clients? Often times, businesses have repeat consumers, which create the core of their daily revenues. Particular factors such as new competitors growing up around the location, roadway construction, as well as staff turnover can influence repeat customers and negatively impact future profits. One crucial thing to consider is the location of the business. Is it in a very trafficked shopping center, or is it hidden from the highway? Clearly, the more people that see the business on a regular basis, the better the opportunity to develop a returning customer base. A final thought is the general area demographics. Is the business placed in a largely populated city, or is it located on the outside border of town? Exactly how might the regional median home income effect future revenue prospects?