Listing ID: 83817
Don’t miss this rare opportunity to acquire an established Math Tutoring and College entrance exam prep business with a strong virtual and in-person learning capabilities poised for continued growth in the rapidly expanding tutoring market.
The company has been serving the Twin Cities Metro area for nearly two decades and are highly regarded for their excellent teaching staff, competitive tuition, and commitment to ensuring the optimal development of each student. This is why the Company has been voted “best tutoring center” by the local community for various consecutive years. This very profitable business serves students from elementary to college level math.
– People: The Company has professional tutors that include licensed teachers, mathematicians and engineers who are completely comfortable and have a passion for teaching all levels of mathematics, specializing in advance math subjects. There is 10+ team members including tutors under Owner’s supervision.
– Place: In-person and Virtual tutoring. The facilities layout is purposefully designed for the enrichment of the students learning success. Located in an affluent district, high-traffic area, and easy to find.
– Services: Unique College entrance exam prep services and math tutoring services that are based on the school-district’s curriculum, allows them to develop a strategic learning experience, custom-tailored towards the needs of their students. Tutoring options include private and small group tutoring, where students meet with the same tutor that best suits their learning style.
– Customers: Majority of business is from repeat students’ year-after-year. Diversified list of customer age groups with no customer concentration issues.
- Asking Price: $260,000
- Cash Flow: $101,617
- Gross Revenue: $275,000
- EBITDA: N/A
- FF&E: N/A
- Inventory: N/A
- Inventory Included: N/A
- Established: N/A
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:10
- Furniture, Fixtures and Equipment:N/A
INDUSTRY TRENDS (1) • Improving economic conditions and rising student enrollment are expected to propel revenue over the five years to 2025. A long-term rise in women's workforce participation has fueled demand for industry services. • As the US economy continues to strengthen, demand for industry services is expected to rise. The heightened college admission competition will likely drive demand for industry services as students continue to seek out ways to improve their college applications. • Industry revenue is projected to expand over the next five years in response to strong demand and plentiful market opportunities. Parents have started enrolling their children in tutoring programs at younger ages to ensure academic success. (1) IBIS World
The company has 10+ employees and is located in a building with approx. square footage of N/A sq ft.
The real estate is leased by the business for $0.00
Why is the Current Owner Selling The Business?
There are all types of reasons why individuals resolve to sell operating businesses. Nevertheless, the true factor and the one they say to you may be 2 entirely different things. For instance, they may claim "I have a lot of various obligations" or "I am retiring". For lots of sellers, these factors are valid. But, for some, these might just be justifications to try to conceal the reality of transforming demographics, increased competitors, current decrease in revenues, or a range of various other reasons. This is why it is extremely crucial that you not count entirely on a seller's word, however instead, make use of the seller's solution together with your total due diligence. This will repaint an extra practical picture of the business's current scenario.
Existing Debts and Future Obligations
If the current company is in debt, which lots of companies are, then you will need to consider this when valuating/preparing your deal. Many businesses finance loans in order to cover items like supplies, payroll, accounts payable, and so on. Remember that in some cases this can indicate that revenue margins are too thin. Numerous organisations fall into 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 take into consideration. There might be an outstanding lease on tools or the structure where the business resides. The business might have existing agreements with vendors that have to be satisfied or might cause charges if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Just how do businesses in the area attract new customers? Many times, businesses have repeat clients, which form the core of their day-to-day earnings. Specific aspects such as new competitors sprouting up around the location, road construction, and staff turn over can impact repeat customers as well as negatively impact future earnings. One vital point to consider is the area of the business. Is it in an extremely trafficked shopping mall, or is it concealed from the highway? Obviously, the more people that see the business regularly, the better the chance to develop a returning consumer base. A final thought is the general area demographics. Is the business situated in a largely populated city, or is it situated on the edge of town? How might the neighborhood average home earnings impact future earnings potential?