High Cash Flowing, Fully Staffed Early Childhood Center
It has been a great 15 year run for the long-time absentee owner of this outstanding, non-franchised early childhood learning center, but the seller is now of the age where he wants to focus on his cluster of other centers located near his home, some 400 miles from Michigan. His plan to consolidate could be your opportunity.
Wonderfully located on a major street in a fast growing suburb of a large and desirable West Michigan city, this business occupies an attractive, late model, purpose built 11,000 square foot building on a three acre parcel. There is plenty of space for the staff of 20 to park while having generous outdoor playground areas for the 100 (+) full-time equivalent (FTE) children. A long-term (and assumable) lease insures the buyer won’t have to go looking for new space anytime soon.
The seller has been operating this business on an absentee basis for a decade; and as such he has complete trust in both his Director and Assistant Director (both of whom are full-time) to handle day-to-day operations.
With average annual revenues exceeding $1,000,000, this business has an average annual pretax (not EBITDA, not SDE – pretax!) of $270,000, including 2019 pretax profits of $300,000. And unlike virtually every business being offered for sale, this listing has no addbacks…the pretax profits are fully demonstrable and reflect an operation not requiring more than nominal owner involvement.
Boasting a student count of over 150 (100+ FTE), parents prepay tuition so there is no A/R to tie up cash or require management attention chasing payments. Along the same lines, outside of a modest level of food inventory (meals for the students), no working capital is committed to inventories.
A highly trained staff has worked closely with the State of Michigan to insure that the children receive the highest level of care while the business meets all of the State’s mandated day care requirements. Students come primarily from the surrounding township, but the center also enjoys students whose parents drive them round trip from up to 30 minutes away.
Offered for $895,000 (a very attractive 3.3x average pretax profits), this high cash flowing business is fully bankable under SBA guidelines, with as little as a 10% buyer down payment. The seller hasn’t recently engaged in marketing so a new owner could focus on growing the business and expanding profit centers. As part of the purchase price, the seller would provide full transition training to the buyer who, at his option, could also have educational stints at the some of the seller’s out-of-state centers. The seller also knows from his first-hand, out-of-state experience that the business model is very scalable, and he feels that for the growth minded buyer there is plenty of room for expansion throughout Michigan and the region. And to round out the deal, the seller will carry a low six figure seller note for a qualified buyer.
For more information on this attractive, very profitable business, please contact Miles Greengard.