Established & Reputable Daycare Center

Annapolis, MD
Anne Arundel County


Asking Price: Annual Revenue:
$800,000 $1,170,000

Services: Children - Child Care, Education


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RE: Established & Reputable Daycare Center Broker: Dustin Zeher
Owner Financing is Available!
Seller is willing to provide financing based on the final purchase price, terms and qualifications of the buyer.

Quick Facts

Asking Price: $800,000
Annual Revenue: $1,170,000
Net Profit: Not Disclosed
Cash Flow: $397,682
Total Debt: Not Disclosed
FF&E: $150,000
Real Estate: Not Disclosed
Year Established: 1989
Employees: 21
BBN Listing #: 267732377
Broker Reference #: HZ476DZ

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Business Overview:

Excellent opportunity to own an established and reputable daycare center that has been serving the Anne Arundel County market for over 30 years. The center is situated in Western Annapolis and in close proximity to Route 50. There are a total of 6 classrooms in the center allowing for individualized attention and an ideal pupil to teacher ratio. The center offers programs for infants (starting at 6 weeks) up to children through age 5 with a maximum capacity of 81 children in total with the ability to increase capacity to 134 children. The center is registered in the Maryland Excels Program and is a Level 1 facility – a new owner can go through the steps to obtain a higher Excels level which will be beneficial to the new owner, the current owner just hasn’t taken the time to do so.

The center benefits from its long-standing reputation in the area and has been a well-known center in the market for decades. Due to COVID, the center was operating at at reduced capacity for much of 2020 which impacted the full year revenue and cash flow numbers. As of the August 2021, enrollment stands at 80 children, so almost 100% capacity which has shown the center has rebounded nicely from the pandemic. The business has otherwise shown stable revenue and cash flow numbers in recent years along with compliant licensing reports. There is ample parking along with nicely equipped outdoor play areas.

The owner has been a daycare owner operator for over 10 years and purchased this center in 2018 to complement another center owned in a neighboring county. The owner currently has a director in place therefore allowing them to spend a limited amount of time each week at the center where they largely focus on general business management, organization, bookkeeping, and payroll. This represents an excellent opportunity to take over a well-run business with strong historical profitability that is run on a near absentee basis. The next owner could easily take on an active day-to-day management role if desired where they would benefit from the cash flow claimed from being an owner operating director. The childcare industry has seen significant and sustained growth in the area in recent years, so don’t miss out on the chance to own a well-known center in a growing part of Anne Arundel County!

*Please note, the revenue and cash flow claimed is based on 2021 projections as an active owner operator. The asking price of the business was based on historic and current performance of the center where we have received a pre-qualification from an SBA Lender for the full asking price.

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Property Features and Assets:

The center occupies a 6,491 square foot space located in an office park setting just off Route 50 in Western Annapolis and is leased for approx. $12,778 per month. The center is situated in a mixed-use area surrounded by residential and commercial developments. There are 6 classrooms, two offices, a lounge, and 2 fenced-in outdoor activity areas/playgrounds and ample storage space throughout the building. Childcare Center Info: Total Enrollment Capacity: 81 Current Enrollment: 80 (as of August 2021) Number of Rooms: 6 Managing Director (Is the Business Owner the Director or is there an Employed Director): There is currently an active director in place Is the center part of any state Subsidy Program (Yes/No): No If yes, what is the % of parent pay vs state subsidy?: N/A Is the center part of any state Food Program (Yes/No): No

Market Competition and Expansion:

Competition: There is standard competition for the industry and market, but this center has been established for over 30 years and has a built up a good reputation in the area. Growth & Expansion: The business has historically operated near full capacity, but enrollment numbers were down in 2020 due to COVID. The owners and staff have been working to bring the number of pupils back up to pre-COVID levels and the current enrollment level is very close to 100% capacity. This presents the future owner with the ability to grow and expand the business based on current figures and can be done by taking over adjoining space which will allow for an additional 53 kids. The landlord has offered to participate in the construction costs of $50K and to provide some rent abatement.

Reason for Selling:

Owner is retiring.

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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