MergerPlace

Well-Est. Profitable Child Care Center

Idaho


  • Asking Price: $1,750,000
  • Gross Income: $577,500
  • Cash Flow: $302,616
  • Real Estate: $1,200,000
  • Inventory: Not Disclosed
  • FF&E: $53,000
  • Listing ID: #201894
  • Established: 2002
  • Employees: 13 FT/4 PT

Business Description

The ideal buyer is people oriented with a business background and a desire to provide high quality educational guidance to children. If you already own a business in a similar industry, you may be able to integrate this company into yours to scale up and expand. This well-run, turn key business provides day care for children ranging from infant through elementary school ages. Additionally it offers many child developmental programs and works to assimilate the preschooler into the kindergarten and elementary school environment.

This business and the related Real Estate demonstrate sufficient cash flow to pay for the acquisition and provide the new owner with a reasonable return on investment. A detailed financial and cash flow analysis will be provided to qualified buyers. A qualified buyer is someone who signs the non-disclosure agreement, is interviewed by the business intermediary and demonstrates the financial ability to qualify for the purchase of this opportunity.


Business Details

Primary Business Category: Social Assistance (incl. Day Care)
Location: Idaho

Company Information

Year Established: 2002
Home Based: No
Franchise: No
Relocatable: No
Number of Employees: 13 FT/4 PT

Financial Information

Asking Price: $1,750,000
Gross Revenue: $577,500
Cash Flow: $302,616
FF&E: $53,000
Real Estate: $1,200,000
Seller Financing Available: No

Property Information

Facilities:

The Real Estate of $1,200,000 is included in the asking price of $1,750,000. The building is approximately 7,594 square feet located on .745 of an acre of land in a business park surrounded by residential homes. Real Estate taxes in 2016 were $10,629. Qualified buyers who have signed a non-disclosure will receive complete details on the Real Estate.

Growth & expansion opportunities:

Obtaining affordable, quality day care especially for children under age 5 is a major concern for many parents. With the increased number of households with two working parents or single parent families, this industry has been one of the fastest growing. Locally, the child day care industry is growing due to the increased population. Regardless of the number of local day care facilities, quality day care is in demand. With the current and projected population growth, this business should continue to operate at maximum capacity. According to First Research, more than 11 million US children younger than 5 are in some kind of child care every week. Demand is driven by growth in the youth population and secondarily by employment and income. Also, the importance of early education has spurred growth in high quality child care centers. The US child care services industry includes about 54,000 commercial facilities with combined annual revenues of $21 billion and another 21,000 non-profit facilities with revenue of $12 billion according to Dun & Bradstreet industry profile.

Competition:

The most direct competition includes up scale day care centers which tend to be larger and cater to customers who want more than just “babysitting.” They focus on special programs, education and social development. This type of day care center works with children at a very early age and helps to prepare them for an easy transition into kindergarten and elementary school. Additionally, they work with school age kids, providing transportation to and from school and help pre-teens to thrive in the formal school experience. The second type of day care is the Montessori approach. These centers are actual schools focusing on pre-teen development. Individual development is stressed at a very early age, with kids advancing at their own pace. Montessori schools provide education through the early elementary years, but many parents use the system for preschool and kindergarten only. Thus some of these parents may be in the market for a quality daycare center that provides transportation to and from schools. The third type of child care provider is an “in-home” operation that is more limited in service. They are usually run by one or two people, and take on a small number of kids. While some offer great scholastic preparation, many focus solely on keeping the children safe. Due to the smaller size of these businesses, it takes very little capital to enter the marketplace. They are typically run from the provider’s home and expenses can be kept to a minimum. Therefore, many people come and go with this style of business. Regardless of the type and number of daycare businesses, quality child care centers are still in great demand. With the current and projected population growth in the metropolitan area, this business should be able to continue to run at maximum capacity in the future. And even though the industry is somewhat “commodity like” in nature, the company offers many educational and developmental opportunities that help differentiate itself from the competition. Therefore the center’s greatest challenge in the future may be to raise its capacity rather than to meet it.

Reason for selling:

The current owners are selling the business in order to spend more time with family and focus on other investments.

Support & Training:

Will train for 4 weeks @ no cost. The target clientele has a high focus on preschool education. Clients come from all over town due to the quality of service and care provided by the staff. The business transports children to and from schools.

Contact Business Seller

This form may be used only to contact the seller of this specific business listing. Please do not use this form for any other purpose.

Business Listed By:

Sheila Spangler

Murphy Business Brokers