Daycare Center For Sale in Dallas Fort Worth Texas

For Sellers, Buyers, and Brokers of Daycare Centers For Sale


Daycare Center for Sale in Dallas Fort Worth Texas: day1701071


Daycare Center For Sale in Dallas Fort Worth Texas

$1,650,000
THIS CENTER HAS BEEN SOLD

      
Description of this Daycare Center For Sale in Dallas Fort Worth Texas
This is the quintessential upside potential type of deal that is already making a profit over and above monthly loan payments. The current owners (husband and wife) have other professional careers that occupy the majority of their professional/work time. Almost the entire term of ownership, they have had far more enthusiasm and interest in their professional careers and consequently have not devoted the needed attention to run the day-to-day operations of this daycare center for sale. The owner was present and active in the day-to-day operations in the first few years of the business but, due to her disinterest in the daycare center and focus on her profession of choice, she has been absent from the daily operations for the past several years. Their direct involvement and time they devote to the school has continued to decline to the point that they are basically not involved in any of the operational duties with the exception of the accounting and bookkeeping duties.

It is important to note that even though the owners continue to devote less and less time to the daycare center, it's financial condition and enrollment rates are such that it is still profitable. As a matter of fact, as of lately, the books are indicating increasing profitability due to increasing enrollment of new children in the school. New families are enrolling in the school, the financial effect of which will soon show indication of additional profitability. Ongoing updating of the financials will be provided throughout qualified prospective buyers' due diligence. Also very noteworthy is the fact that the daycare has had excessive expenses incurred since inception and some operational procedures have been recently modified (starting in latter 2006) which are creating immediate expense reductions leading to increased profitability. Quality of education and care for the children has remained at the highest level of integrity. Further explanation and details will, of course, be provided at the right time in the transaction due diligence period.

A very well-known and highly regarded industry expert on operational management procedures, growth and marketing, and state licensure compliance has been employed on a long-term contract consultant basis to assist in increasing the profitability of the school. Pending mutual agreement, the consultant will remain as long as the new owner/buyer wants. This continued very high-quality educational curriculum and operational management is proving effective for the children and the daycare business. The expense for this consultant is already reflected in the books which means that there is no additional expense needed for this consultant over and above the current expense if the new owner decides to continue to retain the consultant. If the new owner decides to end the consultant's contract, expenses will decrease accordingly (which could result in additional profitability).

As of the beginning of 2007, the enrollment has increased by approx 15% and this is prior to the the effect of the annual second most active enrollment period (late winter). It is projected that, pending current operational procedures and management, enrollment will likely increase at the rate of approx 2 - 3 (average monthly net increase) children per month to approx 90-100 children throughout the next 12 months. As is very well known by well-experienced industry professionals, the majority of all revenue over and above breakeven "goes straight to the bottom line".  Further increased enrollment revenue details will be shown on financial information provided to probable financially qualified buyer candidates (see section on "Confidentiality" near bottom of this page).

A new program has recently been implemented for infants. This is an age group of the marketplace that is expected to be very beneficial to the school due to the local area demand and demographics.

This child daycare center for sale was specifically designed to meet the needs of engaged and active parents and their children. It maintains an environment that reflects the lives, interest, and high cognition of the children. By local educators, it is considered to be the best preschool in the city in which it is located. Several local university early childhood education program professors and students have visited and invited the school's owner to lecture. It was chosen as a school for the filming of Barney's educational video clips of children. A well-known local magazine named it as one one of the recommended schools of the metroplex and it was referred to in a certain early childhood book by renowned educators. Future plans are made for it to be the model for an upcoming book on documentation by a The National Association for the Education of Young Children (NAEYC) author.

Marketing / Advertising
The school has had virtually no aggressive marketing efforts in it's history. Even though the currently enrollment level of about 75 (full-time equivalent) children is far below the licensed capacity, the owner's really haven't had to make much of a marketing effort because almost all of the families have come through referrals. This means that there has been insignificant phone book advertising, little or no local marketing, or otherwise local marketing/advertising medium utilized. It was ONLY after the consultant's encouragement that the current owners decided to start marketing the daycare center so advertising and marketing efforts are basically just recently being implemented. These new marketing expenses are already reflected in the daycare center's financials. These newly incurred marketing and advertising expenses have already been taken into consideration when computing the center's current profitability as stated.

Location
This school is located in a prime location for stability as well as growth. The existing (and growing) market local to the Center offers significant opportunity for increased enrollment. Local competitors are engaged in normal and usual advertising and marketing efforts and, consequently, are experiencing enrollment levels basically at or near licensed capacity. For reasons of confidentiality, further information about this business (other than the information located on this page) will be provided only after the Confidentiality Agreement is completed, signed, dated, and faxed to Broker at (
214) 615-9777. Additionally, proof of financial capability to consummate the transaction will be required prior to disclosure of the company's confidential financials. All information is, as usual, kept very confidential. Further information about the step-by-step process through which Broker coordinates the sale of buy-sell transactions of daycare centers for sale will also be provided upon receipt of the Confidentiality Agreement.

Facility Information
The (approximate) 6,500 square foot facility is in great condition. It is a state-of-the-art facility and it is near a nature trail and local ISD schools. It is clean, safe, well-maintained, secure, and in a desirable location.
 

FINANCIAL INFO:

Asking Price:

$1,650,000     THIS CENTER HAS BEEN SOLD

Annual Revenue:

$690,000        THIS CENTER HAS BEEN SOLD

Cash Flow:

$210,000        THIS CENTER HAS BEEN SOLD


NOTE:
The above figures are based on an enrollment rate that less than half of licensed capacity. Attractive deal for a lender/financing because of high tangible asset (almost solely real estate) to acquisition cost ratio which results in a highly collateralized loan. Real property collateralized loans offer much more attractive loan terms (lower monthly debt payments). Low multiple of earnings. Great ROI. Growing industry. Established business. Strong upside potential for significant profitability for the owner who will devote more to time to enrollment growth. It is very noteworthy to understand that basically the sale price is based solely on real estate/asset value... not goodwill.
 

ASSETS & LIABILITIES:

Inventory/Supplies

Included in FF&E

Furniture, Fixtures, & Equipment (FF&E)

Approx $55,000 - $60,000

Real Estate Value

$1,500,000 - $1,700,000 (approx)


Other Information
The business operations are run as a sub-s corporation and the real estate property is owned by a partnership. Both entities and/or their assets are included in this sale. Inquire with Broker for more information.

NOTE: This is a first class opportunity. It is priced at only the value of the assets, it is profitable after financing (even at only about half of licensed capacity), it has significant upside potential for financial growth, it is being very well-managed, and it's educational curriculum program is of the utmost standards and is arguably unsurpassed.

Current Enrollment
105 (approx 75-80 full-time equivalent)

Licensed Capacity
163

Year Established
2000 (7 years)

Reason for Selling
Other Business Interests

Time sellers are willing to remain after the sale
Negotiable / Long enough to insure a smooth transition

Confidentiality
For reasons of confidentiality, further information about this daycare center for sale (other than the information located on this page) will be provided only after the Confidentiality Agreement is completed, signed, dated, and faxed to Broker at (
214) 615-9777. Additionally, proof of financial capability to consummate the transaction will be required prior to disclosure of the company's confidential financials. All information is, as usual, kept very confidential. Further information about the step-by-step process through which the Broker coordinates the sale of buy-sell transactions of daycare centers for sale will also be provided upon receipt of the Confidentiality Agreement.
 

THIS CENTER HAS BEEN SOLD

 


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