This well-known Childcare Operation provides quality early child care and education programs for working and non-working families. Age groups include infant and toddler through pre-kindergarten and before & after school care.
The company has been fully reviewed and conservatively appraised by an accredited national valuation firm at 3.8x SDCF (2019). A full valuation report is included and there is $15,000 in Net Working Capital plus another $210,000 in Fixed Assets included in the deal. The business is pre-qualified by an SBA lender subject to buyer’s financials, and by implementing the proposed deal structure an owner operator will obtain close to $150,000 benefit in after- acquisition-debt cash flow in Year #1 – 45% return on equity investment.
(ALL DATA BASED ON SIGNED TAX RETURNS)
This business currently operates from a 9,000 sq. ft. leased classrooms and office space.
It is projected that a new owner will obtain additional growth by expanding the direct sales efforts with a minimal investment of $30k. The company projects a revenue growth rate under such premise of 10%+ per year.
The company enjoys a competitive advantage by offering a nurturing environment, staffed by trained and accredited professionals, in a state of the art, secure, licensed setting. It is also advantageous for the company to offer child care services to a wide age range of children. This allows for children to stay with the center for a number of years.
To step back after 20+ years (consulting available)
A comfortable transition period will be provided by the owner who truly wants to see the business continue to flourish. Seller will consider a mid-term consulting agreement thereafter. A very well trained and highly qualified team will stay in place and support the new owner in all aspects of the business.
A Neumann & Associates, LLC
