Early Childhood Development Center

Fairfield, OH (Butler County)

Early Childhood Development Center

Asking Price:$1,400,000

Cash Flow:N/A

Gross Revenue:$900,000

EBITDA:N/A

FF&E:N/A

Inventory:N/A

Real Estate:N/A

Established:2011

Early Childhood Development Center

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Business Description

Business is a childcare/preschool serving families in Fairfield, Ohio and neighboring communities. Current owner purchased the business in 2011. Company operates from a free standing owner occupied location and seeks to enhance a families’ experience by offering quality programming coupled with compassionate caregiving.Revenues in 2016 are projected to exceed $900K based on the 9 month interim period. Owner discretionary earnings have averaged nearly $200K for the past 3 years with annualized 2016 discretionary earnings projected to be $225K.The asking price of $1,400,000 (business and real estate) represents an incredible opportunity for a healthy earnings stream based upon an established customer base.

Detailed Information

Real Estate:
Owned
Building Sq. Ft.:
8,000
Employees:
20
Facilities:
The child care center includes an 8,000 square foot free-standing building. The business also includes assets (furniture fixtures and equipment) having an original cost of $141K.
Competition:
The Company sets itself apart from its competitors by offering a learning environment with an emphasis on “family atmosphere”, hiring compassionate, educated teachers who are invested in the children, and offering quality programming that promotes education. New Developments – Veritiv is slated to move from Clermont County to Gilmore Pointe Office Park in Fairfield, Ohio. Veritiv is a distributor of print, publishing, packaging, and facility solutions. The move will bring 400 jobs to Fairfield. When the move is complete, Veritiv will rank as 9th on Fairfield’s top employer list. Pacific Manufacturing Ohio is recently started construction on a $50MM expansion. Pacific is an automotive parts manufacturer, making a variety of metal and plastic component parts. It is a Tier 1 auto parts supplier to Toyota, along with also supplying parts for Honda, Mitsubushi an Subaru. Pacific will create at least 60 new jobs as a result of this project.
Growth & Expansion:
The move from a branded to a non-branded preschool/daycare generates additional earnings opportunities for the new owner. Likewise growth opportunities exist based on successful enrollment trends which allow for maximizing profitability margins.
Support & Training:
The owner, manages the facility and oversees all the operations including bookkeeping, enrolling families, family management, and marketing. Owner averages 50 hours per week, not including weekend hours, and takes an annual salary plus an owner draw annually. The business has had a Director since April 2014, who manages some operations and is the point of contact once a family becomes a client. The director recently assumed the scheduling responsibilities from the owner. Prior to being Director, the Director was the Assistant Director (2013) and before that worked as a teacher in the toddler room. She is paid a salary annually. The Assistant Director, is in charge of the Company’s “Step up to Quality” program. Step up to Quality is a five-star quality rating and improvement system administered by the Ohio Department of Education and the Ohio Department of Job and Family Services. Program standards have to be met in order to continue to accept families on assistance. She is paid a hourly wage (averages 40-43 hours per week) plus receives free childcare for young children and 50% off any other children the Assistant Director may have. These discounts result in an employee benefit of $10,200 per year in addition to her salary. Both the Director and Assistant Director plan to stay upon the sale to a new owner. The current owner has kept them informed of her plans to sell the business. Additionally, there is a key employee who has the dual role of teacher and managing the subsidy program who also plans to stay. The owner does not foresee anyone leaving as a result of the sale. All together, there are 20 employees most of which are full time and are paid hourly with rates ranging from $9 to $14/hour. The Company uses Paychex for payroll processing and does accept credit cards for its tuition payments. The Company offers reimbursement for health insurance to eligible employees with eligibility defined as an employee having full time status. Currently, there is 1 employee being reimbursed for health insurance and 2 employees reimbursed for the dental and vision insurance.
Reason for Selling:
Looking for new opportunities

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Prosperitas Advisors LLC

Business Listed By:
Prosperitas Advisors LLC

Prosperitas Advisors LLC

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