4 Star Day Care - Primarily Private Pay

Not Disclosed, OH
Lorain County


Asking Price: Annual Revenue:
$350,000 $734,505

Services: Children - Child Care, Education


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RE: 4 Star Day Care - Primarily Private Pay Broker: Jason Poot

Quick Facts

Asking Price: $350,000
Annual Revenue: $734,505
Net Profit: Not Disclosed
Cash Flow: $117,110
Total Debt: Not Disclosed
FF&E: $130,000
Real Estate: Not Disclosed
Year Established: 2005
Employees: 19
BBN Listing #: 810949902
Broker Reference #: 84541-155787

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Business Overview:

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.

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Property Features and Assets:

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.

Market Competition and Expansion:

2 nearby competitors who charge more and have a lower SUTQ ratings Potential Growth 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 was not awarded until 12/30/18. 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.

Reason for Selling:

Relocating

Additional Details:

  • The property is leased.
  • The owner is willing to train/assist the new owner.
  • This is not a homebased business opportunity.
  • This is not a franchise resale opportunity.

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