 |
For
Sellers, Buyers, and Brokers of Daycare Centers 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. Both should be faxed to (214)
615-9777. 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
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