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4 Star Day Care - Primarily Private Pay

Lorain County, OH

4 Star Day Care - Primarily Private Pay
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Asking Price: $350,000

Cash Flow: $117,110

Gross Revenue: $734,505

EBITDA: N/A

FF&E: $130,000

Inventory: N/A

Rent: $9,786 /Month

Established: 2005

4 Star Day Care - Primarily Private Pay

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Business Description

Nearly Absentee Business!!!

***UNDER EXCLUSIVE BUYER AGREEMENT***

This outstanding day care in Cleveland’s Western Suburbs has a capacity to 165, but averages 108 enrolled children per month. The business has a few Title XX families, but the revenue is primarily private pay.

The center employs 19 employees, with a Director and an Assistant Director in place. The husband and wife owners are not active in the daily business, working a combined average of 10 hours per week on decision making and back office support.

While this center has some direct local competition, its prices are lower and has a higher Step Up to Quality rating. The current owner believes pricing could be increased by 15% and still be well positioned against competition.

The owners of this busienss are looking to sell the business to relocate for a new business opportunity on the west coast.

To receive additional information a non-disclosure agreement and buyer profile (or another method to show proof of funds) will be required before any confidential information will be provided.

Detailed Information

Location:
Lorain County, OH
Real Estate:
Leased
Building SF:
10,982
Lease Expiration:
N/A
Employees:
19
Furniture, Fixtures, & Equipment (FF&E):
Included in asking price
Facilities:
Started in April 2006 by a husband a wife team the business focused on child development and care for children between the ages of 6 months and 12 years old. The business provided complete child care services as well as summer camps, development programs and additional activities. As the founding owners’ children started to graduate high school, they decided it was time to move and sold the business to the current owners. The current owners have heavily invested in the business with many improvements such as; new HVAC, flooring, LED lighting and play ground updates. Additionally, the new owners have transitioned the business to be largely absentee by investing in employees and Director. As of 2018 the business can be operated with minimal involvement from the owners. A crowning achievement of the new owners is that they were awarded a 4 Star rating in the Step Up to Quality Program.
Competition:
2 nearby competitors who charge more and have a lower SUTQ ratings
Growth & Expansion:
The current owners operate in a nearly absentee fashion. The owners spend a combined average of 10 hours per week in the business. The duties they perform are supporting the Director and Administrator with decision making and back office support with payroll and financial reporting. The duties being performed by the owners can be absorbed by the Director. The business is currently operating at 64% of its licensed capacity. Growing both private pay and Title XX enrollment should be primary driver for the new owner. Given the business was recently rewarded a 4 Star Rating through the Step Up to Quality Program, this should be used a marketing tool to drive new enrollment. The current financials do not reflect revenue increases for the Title XX enrollment as the 4th Star. When comparing the business against the local competition the currently owner feels that pricing to private pay families could be increased by 15% and still be the lower cost option against the competition.
Support & Training:
8 weeks
Reason for Selling:
relocating
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Jason Poot, CBI

Business Listed By:
Jason Poot

Transworld Buisness Advisors of Columbus

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Memberships & Certifications:
Indicates membership in the International Business Brokers Association (IBBA). The IBBA is the only certifying organization for Business Brokers and Intermediaries who assists people in buying or selling a business. Certified Business Intermediary (CBI) is a professional certification awarded to Business Brokers and Intermediaries that have achieved stringent requirements. CBI's work by an ethical code of conduct when working with business owners and buyers. Indicates membership in the Ohio Business Brokers Association (OBBA).

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