Omaha Learning Center for Children
For children who have academic challenges or developmental concerns, this learning center is ready to help. Providing an education and skills training program is the focus of this company. The integrated approach can include academic activities, gross and fine motor activities, as well as information on dietary options that may help to improve symptoms. With $30,000 in the pipeline and a recurring monthly revenue of $5,000, this program builds on the packaging of services to meet individual needs.
With programmatic guidelines set by the franchise, a new owner can learn to complete assessments, carry out sessions, and compile reports on progress. Children can be admitted to this program with a diagnosis given by a licensed physician or qualified specialist, or with no official diagnosis at all. Insurance or Medicaid funding is not necessary as this program does not require a licensed health professional to be on staff. Tuition can be broken into monthly payments. With a beautiful facility located in Omaha, Nebraska and the support of the franchise, a new owner will have all the assets needed to build upon a solid foundation.
The current owner is involved in the day-to-day operations of this business. There are additional staff members who assist in various capacities.
- Year Established: 2016
- Location and Service Area: Omaha and the surrounding areas with an easily accessible location
- Clients: Children aged 2-18 who have learning challenges or developmental concerns as diagnosed by a medical professional
- Services: Learning center one-to-one instruction
- Lease: 4,500 sq. ft. with rent of $3,100: Session room, lobby, offices, conference rooms, break room, storage
- Reason for Selling: Exit strategy
- Employees: 10: FT (3), PT (7)
- Hours: M-F: 10:00 – 8:00
- Seller Training Period: 90 days transition
- Growth Opportunities: Build client base, advertise, market to local organizations, sponsor a try-it-free day, increase social media engagement
- Current Owner’s Responsibilities: Owner/operator
- List Price: $566,000
- Gross Sales:
- 2018: $536,801 Annualized
- 2017: $502,944
- Cash Flow:
- 2018: $184,812 Annualized
- 2017: $117,049
- Assets Included in Purchase*
- $35,000: Training equipment, furniture, fixtures, computers and software
- Build-Out: $70,000
- Pipeline: $60,000
- Intangible Assets: Franchise with name recognition, rising potential customer base, strong referral base
*amounts may vary
Cash Flow Analysis
|Description of Financial Statement||P&L Statement|
Jan. - Sept.
|Net Income Shown on Financial Statement||$73,228||$21,015|
|Compensation to Owner||$17,484||$33,285|
|Other unrelated Salaries||$22,154||$47,999||Eliminated position|
|Advertising||$232||$3,774||Print outs are all now digital - non-onward going expense|
|Enrollment Kits||$2,250||$15,000||Print outs are all now digital - non-onward going expense|
|Coaching Services||$980||$4,813||Now paid by corporate|
|Dues & Subscription||$64||$1,167||Personal expense|
|Meals & Entertainment||$504||$622||Personal expense|
|11% Tax on total W2 Salaries||$4,360||$8,941|
|Seller's Cash Flow = Total Addbacks + Net Income||$138,609||$177,049|
|Profit Margin||34.43 %||35.20 %|
- 35% profit margin in 2017!
Total Employees: 10
- Full-time (3)
- Part-time (7)
- Build client base
- Market to local organizations
- Sponsor a try-it-free day
- Increase social media engagement
- Conduct seminars to build client base and brand awareness
- Present at school in-service meetings
- Contract with schools to do programs
- Bring in revenue from getting off call center (They book assessments and can handle outbound as well as inbound inquiry calls. This would bring in around $3,000.)
The Firm Business Brokerage used a cash flow valuation methodology to determine the purchase price of the business.
The formula used is as follows:
Cash Flow x Prescribed Multiple = Fair Market Value
Cash flow is the sum of business net income plus any owner perks and any non-onward going expenses.
A multiple is prescribed by a 20 question, 100-point parameter ranking system that is used to analyze the current business health. Each question is based on a scale from 1 to 5: 1 being low, 2 below average, 3 average, 4 above average, 5 high. The average of the responses sum is the business’ prescribed multiple.
For this business, a 2017 cash flow was used with a prescribed multiple is 3.2. With this information, the computation is as follows:
$177,049 x 3.2 = $566,557
The fair market value found above positions the business list price at $566,000.
Purchase Price: $566,000
12.5% Buyer Down Payment: $70,750
12.5% Seller Financing: $70,750
75% Bank Loan: $424,500
Seller financing 5-year term at a rate of 4.50% equals a monthly loan payment of $1,319.
Bank loan 8-year term at a rate of 6% equals a monthly loan payment of $5,579.
After business expenses and loan payments, a buyer with a 12.5% down payment of $70,750 would retain a profit of $94,279, which results in a 133% return on investment in the first year.
A lender is required to have a minimum 1.5 coverage ratio for any business loans extended. At a proposed purchase price of $566,000 with the terms listed above, the coverage ratio is 2.14.
Please note that the decision of whether to extend a loan on any sale belongs to the bank, and this document does not guarantee specific terms or verify that financing is available.
Offer Price: $
% Buyer Cash Down at Closing: $
% Seller Carry Back via Promissory Note: $
year term at a rate of %
% of Purchase Price secured by Buyer and Seller
Total Bank Loan Need: $
% of Purchase Price
Desired Loan Type:
Desired Bank Terms: year term at a rate of %
Total Business Assets, Inventory, and A/R: $
Total Undercollateralized Loan: $
|Monthly Payment to Bank:||$|
|Yearly Payment to Bank:||$|
|Monthly Payment to Seller:||$|
|Yearly Payment to Seller:||$|
|Total Monthly Debt Service:||$|
|Total Yearly Debt Service:||$|
Fixed Charge Coverage Ratio
The bank will require a minimum ratio of 1.5 to be lendable.
2017 Cash Flow
|Annual Debt Service:||$|
Buyer's Net Operating Income (NOI)
The amount of money the Buyer will retain as profit.
2017 Cash Flow
|Annual Debt Service:||-$|
Buyer's Return on Investment (ROI)
The rate of return on the Buyer's down payment.
|Document Title / Description|
This folder is empty.
Access to this Deal Room is restricted
Would you like to access the deal room?Yes, please
Already have an account? Log in here.
Print, sign and send to:210 N 78th St. 2nd Floor
Omaha, NE 68114
Or fax to: