This well-established day care is licensed for 200 children. The current enrollment includes 181 children with 126 children enrolled for the full day, 36 in the after school program, and 19 GA Pre-K program children who stay after 3:00 p.m. The center is located on 2.15 acres and includes three buildings with playgrounds and a swimming pool. The center is near four elementary schools. The purchase price includes both the business and real estate.
OPPORTUNITIES FOR GROWTH:
The center’s tuition rates are the lowest in the area and there has not been a price increase since the current owner bought the business 5 years ago. Competitors are charging up to $35 more per week per child. There are seven children enrolled with no revenue collected, and two more children who have paid substantially reduced rates because of family financial issues. The center does not market itself and has spent an average of $500 or less in each of the last four years for marketing.
The day care is conveniently located between and near two major traffic arteries that, in total, have a daily traffic count of 90,000 to 115,000 vehicles. The center is located near the entrance to a very large office complex, yet does not get any children from the parents working in the complex.
Approximately 30% of the enrolled children have some or all of their fees paid by the state. However, the center is located in a growing middle class neighborhood. According to the US Census Department, the number of children in the area age 0 to 4 is expected to grow 14% in the next 5 years. The number of children age 5 to 9 is expected to grow by 9%.
There are currently only 15 parking spaces. A new owner could easily increase the number of parking spaces at the center. A new owner should also make cosmetic changes and improve the signage to make the center more visually appealing.
Sales Owner’s Cash Flow
Current $663k $170k
Previous year $590k $135k
Two years previously $567k $168k
REASON FOR SALE:
The Owner is looking to sell the business because the business employs a number of family members that do not work. The owner feels it would be best for family relationships to sell the business instead of firing their family.