Listing ID: 83053
Have you been wanting to get into childcare for a long while? Well this is a GREAT opportunity to purchase a wonderful childcare center that is very easy to manage and you get to own the property too! That means no high cost rent and pesky landlord involved. This daycare has capacity is under 100. You still have land area to add on to increase capacity to over 100 if you want as you build enrollment. The sale comes with transportation, all equipment, all furnishing , and a Seller who is more than willing to train you in the business to get going. The school already has over 70% of capacity enrolled. Seller is moving back overseas so wants a quick sale. REMEMBER, this price includes PROPERTY!! YOU can’t beat this deal. You get a fully operating childcare center and property for a LOW LOW PRICE!!
- Asking Price: $390,000
- Cash Flow: $60,000
- Gross Revenue: N/A
- EBITDA: N/A
- FF&E: N/A
- Inventory: N/A
- Inventory Included: N/A
- Established: N/A
Why is the Current Owner Selling The Business?
There are all kinds of reasons individuals decide to sell operating businesses. Nevertheless, the true reason vs the one they tell you might be 2 totally different things. As an example, they might state "I have way too many various obligations" or "I am retiring". For numerous sellers, these reasons are valid. However, for some, these may just be reasons to try to conceal the reality of transforming demographics, increased competitors, current decrease in revenues, or a range of other reasons. This is why it is extremely important that you not depend absolutely on a vendor's word, yet rather, use the vendor's solution in conjunction with your total due diligence. This will repaint a more sensible picture of the business's present scenario.
Existing Debts and Future Obligations
If the current business is in debt, which many companies are, then you will certainly need to consider this when valuating/preparing your deal. Many businesses borrow money with the purpose of covering items like inventory, payroll, accounts payable, and so on. Bear in mind that in some cases this can suggest that revenue margins are too thin. Numerous companies fall into a revolving door of taking on debt as a way to pay back various other loans. In addition to debts, there may likewise be future obligations to consider. There may be an outstanding lease on tools or the building where the business resides. The business might have existing agreements with suppliers that should be satisfied or might lead to penalties if terminated early.
Understanding the Customer Base, Competition and Area Demographics
How do businesses in the area draw in brand-new clients? Often times, businesses have repeat consumers, which create the core of their day-to-day earnings. Certain elements such as new competition growing up around the location, road building and construction, as well as employee turnover can influence repeat clients and also adversely affect future earnings. One essential point to consider is the placement of the business. Is it in a highly trafficked shopping mall, or is it concealed from the main road? Clearly, the more individuals that see the business regularly, the greater the chance to build a returning client base. A final thought is the general area demographics. Is the business placed in a largely inhabited city, or is it located on the outside border of town? Exactly how might the neighborhood typical home earnings influence future income potential?