Sarpy Co. Daycare with Great Street Visibility
Located 15 miles outside of Omaha, this fully-enrolled daycare is rapidly. With a staff of 17, growth exists in acquiring the bay next door, which would add 1,400 sq. ft. and room for an additional 40 children. In operation for 4 years, enrollment consists of 75 full-time children and 12 part-time attendees. The fastest growing segment is 2-year-old children, and the seller predicts that this will be the best area for increased sales.
The daycare is located in a 4,400-sq. ft. building and is comprised of 5 classrooms. While the space does have a kitchen, the meals are currently catered in. Attendees range from 6 weeks in age to 13-year-olds, and each age group is served by 2 full-time lead and assistant teachers.
For sale due to the owner moving out of state by the year’s end, the Assistant Director currently operates as a Director, as the owner has recently phased out of the daycare. Still completing month-end duties, the owner does see that the Assistant Director could be officially moved into the Director position, with the Closing Manager becoming the Assistant Director. A new owner could implement these changes, or decide to work in the business and take back the Director position.Listed at $259,000, a buyer could become the owner of a successful, in-demand daycare for just $38,850.
- Year Established: 2013
- Location: 15 miles south of Omaha
- Demographics: Children from 6 weeks to 13 years
- Enrollment: 87 full-time
- Building: 4,400 sq. ft. with 5 classrooms
- Reason for Selling: Moving out of state
- Employees: 17 – includes teachers and assistants
- Hours: Mon – Fri 6am to 6pm
- Seller Training Period: 90 days
- Growth Opportunities: Expand into bay next door – will create room for up to 40 additional kids
- Current Owner’s Responsibilities: Owner has recently phased out of the business, with the Assistant Director handling the day-to-day responsibilities; owner does complete month end duties
- List Price: $259,000
- 2017 Gross Sales Annualized: $644,068
- 2016 Gross Sales: $544,228
- 2017 Cash Flow Annualized: $124,567
- 2016 Cash Flow: $38,450
- YOY Growth: 2017 is projected to gross $644,068 in sales – an 18% increase with no marketing
- $23,117 in FFE included in the purchase price
- Equipment: $2,500 in furniture and fixtures
- $20,617 – 2015 van
- Intangible Assets: Established name and reputation
Cash Flow Analysis
|Description of Financial Statement||P&L Statement|
January - September
|Net Income Shown on Financial Statement||$60,005||$12,747|
|Interest||$7,040||$7,997||Non-onward going expense|
|Amortization||$0||$11,966||Non-onward going expense|
|Non-Business Telephone||$900||$1,200||$100/mo for 1 personal cell phone|
|Insurance Premiums for Owners: Health, Life, Auto||$0||$480||Owner's personal insurance|
|Director's Salary||$25,480||$0||Owner would operate as Director|
|Seller's Cash Flow = Total Addbacks + Net Income||$93,425||$38,450|
|Profit Margin||19.34 %||7.07 %|
- 2017 is projected to gross $644,068 in sales, an 18% increase from 2016 with no marketing
- A new owner could increase cash flow by consolidating employees or acting as Director and replacing either the Assistant Director or Closing Manager.
Additional staff includes a PT Float Teacher and 4 PT helpers.
The current owner has phased out of the business, but still holds the title of Director. The Assistant Director handles the day-to-day duties of the Director and is essentially an Acting Director, with the seller suggesting promoting the Assistant Director to Director, and the Closing Manager to Assistant Director. Although absentee at this point, the owner does perform month-end duties.
- Acquire bay next door
- Would add an additional 1,400 sq. ft. and room for up to 40 more children
- Demand for 2-year-olds continues to rise and adding more space would allow for additional preschool rooms and preschool enrollment
- A new owner could take a more active role in the daycare and consolidate some of the positions
- The current owner was more involved previously but has since phased out
The Firm Business Brokerage used a Cost-to-Create methodology to value this business, determining that it would take far more time, energy and resources to recreate the same facility and reputation than to purchase it for $259,000.
The List Price is suggested at $259,000.
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