Details - Information last confirmed on November 9, 2020
Great opportunity to own an established and reputable daycare that has been serving the Anne Arundel County market for 15 years. The center is situated in a growing part of the county nearby several large commercial and residential areas. There are a total of 7 classrooms in the center allowing for individualized attention and an ideal child to teacher ratio. The center offers programs for infants (starting at 6 weeks) up to children through age 5 including before and after school programs for children up to 15 with a maximum capacity of approx. 90 children.
The center benefits from its long-standing reputation in the market along with a favorable population and demographic makeup which has provided the business to be fully enrolled at max capacity with a waiting list. *Currently, due to COVID-19 the center did see a drop in enrollment (after closing for about 2.5 months it reopened at approx 20% capacity) but as of the beginning of March 2021 enrollment is at approx 65-70% capacity. There is no question that the business will quickly get back to full licensed capacity when the economy fully opens back up with people back to work on site and kids back in school needing childcare more than ever. The business has seen stable revenue and cash flow growth over the last three years (2017-2019) with outstanding licensing reports. The business accepts both privately paid tuition and subsidized care payments with the latter traditionally comprising less than 1% of overall revenue. There is ample parking along with well-equipped outdoor play areas.
After nearly a decade of operating the business, the owners have decided to sell the center after a successful tenure of ownership. This represents an excellent opportunity for a new owner to take over a consistently profitable enterprise that’s poised for continued growth. The childcare industry is one of the fastest growing markets, so don’t miss out on this exceptional opportunity and contact us today to learn more!
***Please note, the stated revenue and cash flow figures in the listing are based on an avg of the past three years prior to covid and what we project to be obtainable within the next year or sooner. The average 3 year revenue from 2017-2019 was approximately $985,927 with an average owner operated cash flow of $246,867 as the center was fully enrolled with nearly 100 pupils and had a waiting list. For 2020, these figures were down about 27.5% with revenues of approximately $727,008 and an owner operated cash flow of approximately $145,346. This drop off is understandable and was largely due COVID practically forcing the center to be closed for nearly 2.5 months. The current 3 year revenue average (2018-2020) would be $909,321 and the current 3 year owner operated cash flow average would be $215,883. The center is currently around 65-70% capacity and is seeing demand continue to increase as other centers in the area have closed or have limited capacity.
The business previously was on the market (taken off due to COVID and PPP Loan Forgiveness) with an asking price of $599,995 with multiple offers. The sellers are motivated to sell so they are accepting reasonable offers. Private showings can be arranged on weekends.***
Disclaimer: DealStream has not independently verified any of the information in this listing and makes no warranty as to its accuracy or completeness. This listing does not constitute an offer to sell, solicit or make an offer to buy an investment interest. Offers to sell, or the solicitation of offers to buy, any security can only be made through official offering documents, such as a subscription agreement and private placement memorandum.