Childcare Daycare Center For Sale in Texas - www.DaycareForSale.com

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


Child Daycare Center for Sale: day1001041

Texas Child Daycare Center For Sale:

$5,300,000  THIS CENTER HAS BEEN SOLD
Cash Flow: $834,000 THIS CENTER HAS BEEN SOLD

      
Description of this Texas Child Daycare Center Business For Sale
Child Daycare Center For Sale in the north Texas area. This is quintessentially a reputable, "who's who" center that is highly respected in the region in which it is located. Known for being very well-managed, it's current profitability based on the aforementioned sales price is predicated on it's current occupancy rate of only about 55%. Hence, upside potential is significant. Since the Daycare Center was established, the current owner has intentionally kept the enrollment limited to approximately the same level as it is currently. The sellers also own another business which has also performed quite well over time. Hence, she been less than aggressive with her interest in accepting more children (for higher enrollment).

Location
This Center is in a prime location for growth and stability. The existing (and growing) market local to the Center offers significant opportunity for increased enrollment. 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. Additionally, proof of financial capability to consummate the transaction will be required prior to disclosure of company 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 will also be provided.

Facility Information
The facility is well-maintained and is in great condition. The building is approximately 24,000 square feet but only about 17,000 square feet is utilized for the licensed area of the operations of the Child Daycare business. The additional 7,000 square feet is on the second floor of the building, is completely non-invasive to the operations of the school. Of the 7,000 sf upstairs, about 3,000 is for administrative/storage/teacher break room/etc and the other 4,000 has it's own separate entrance and parking in the rear of the building. Pending mutually agreeable terms, the current owner has an interest in a multi-year contract to lease 4,000 of the upstairs 7,000 square feet from the Buyer which will provide attractive additional income as is shown on the Daycare business's financials. More information to be provided upon receipt of the confidentiality agreement and proof of financial capability information from the prospective Buyer (as mentioned above).

 

FINANCIAL INFO:

Asking Price:

$5,300,000 Total Price (Includes Real Estate)
THIS CENTER HAS BEEN SOLD
 

Annual Revenue:

$2,000,000 THIS CENTER HAS SOLD

Cash Flow:

$834,000

THIS CENTER HAS SOLD

NOTE:
The above figures are based on an enrollment rate that is approx 55%. Significant upside potential. Attractive deal for a lender/financing. Low multiple of earnings. Great ROI. Growing industry. Established business. Highly respected business in it's marketplace. Very profitable for the NEW owner.

 

ASSETS & LIABILITIES:

Inventory

Included in FF&E

Furniture, Fixtures, & Equipment

Approx $150,000+

Vehicles

$30,000 - $40,000 (2 vehicles approx $15k to $20k each)

Real Estate Value

$4,000,000 (per appraisal)

 

 

TYPICAL REVENUE RUN-RATE & FEE BRACKETS

 

Fee Bracket
(per week)

Kids per
Fee Bracket

Fees per Bracket
(per month)

Fees per Bracket
(per year)

FT

$210

30

$27,300

$327,600

FT

$190

48

$39,520

$474,240

FT

$165

70

$50,050

$600,600

FT

$168

43

$31,304

$375,648

FT

$170

14

$10,313

$123,760

FT

$100

10

$4,333

$52,000

 

Subtotal (FT)

215

$162,820

$1,953,848

PT

$35 / day

2.87/day

$2,177

$26,128

 

Subtotal (PT)

 

$2,177

$26,128

 

Totals

 

$164,997

$1,979,976


FT = Full time students
PT = Part time students

 

Other Information
Current owners (of Daycare Centers) in the industry are aware of the downturn that the Childcare industry experienced as a result of September 11, 2001. As layoffs ensued, so did an overall decline in enrollment in the Childcare industry. If you're an owner, you already know this and you most likely experienced it. If you're not, then you need to research this issue for your own benefit. This Center was no exception to the rule. It's revenues peaked in 2001 and then declined to it's low in 2003. However, due to significant improvements in the overall marketplace/economy, in the last year (or more), it has already regained almost all of it's decline. In fact, it is currently on track for revenues that are almost what they were at the industry's peak. Put simply, this Daycare Center (and the industry as a whole) is performing very well. Even at current enrollment of about 50% of licensed capacity, anticipated, normalized financing terms indicate a favorable post-debt cash flow. Increases in capacity should significantly enhance the currently substantial profitability. As is the case with almost all other family-owned businesses, the owners have expensed significant amounts of personal expenses against the business. These personal expense "add-backs" are delineated in detail as the the Center's books have been professionally managed - proof of which will be provided at the appropriate time. All P&L statements, balance sheets, general ledger entries, and probable financing terms (third-party, not owner financing) will be made available and explained in detail at the appropriate time of a prospective buy-sell transaction. Inquire with Broker for more information. NOTE: This is a first class opportunity. It is properly priced, it is significantly profitable after financing (even at only approx 55% enrollment), it has significant upside potential for financial growth, it is well known, and highly regarded in the industry.

Current Enrollment
Avg 215 - 225

Year Established
1991

Reason for Selling  THIS CENTER HAS SOLD
Retirement, Convert Equity to Cash, 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 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. Additionally, proof of financial capability to consummate the transaction will be required prior to disclosure of company financials. Both should be faxed to
us. All information is, as usual, kept very confidential. Further information about the process through which the Broker coordinates the sale of buy-sell transactions will also be provided.

THIS CENTER HAS 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