 |
For
Sellers, Buyers, and Brokers of Daycare Centers For Sale
|
|
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
sell
a daycare center | daycare
centers
for sale | register as a
buyer | register as a broker |
site map | about
us | contact us
Daycare For Sale .com. All rights reserved. Legal Statements
|