Established and Well-Known Daycare Center

Not Disclosed, MD
St. Mary's County

Asking Price: Annual Revenue:
$500,000 $785,173

Services: Children - Child Care, Education

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RE: Established and Well-Known Daycare Center Broker: Dustin Zeher
Owner Financing is Available!
Available depending on the final purchase price, terms and qualifications of the buyer.

Quick Facts

Asking Price: $500,000
Annual Revenue: $785,173
Net Profit: Not Disclosed
Cash Flow: $278,799
Total Debt: Not Disclosed
FF&E: $25,000
Real Estate: Not Disclosed
Year Established: 2000
Employees: 14
BBN Listing #: 340932377
Broker Reference #: HZ472DZ

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Business Overview:

Great opportunity to own an established and reputable day care that has been serving the St. Mary’s County market for over 20 years. The center is situated in a growing part of the county nearby several large commercial and residential areas. There is a total of 7 classrooms in the center allowing for individualized attention and an ideal child to teacher ratio. The center offers programs for infants (starting at 6 weeks) up to children through age 6 including before and after school programs for children up to 12 years with a maximum capacity of approximately 115 children.

The center benefits from its long-standing reputation in the market along with a favorable population and demographic makeup which has provided the business to maintain about 80-85% enrollment prior to COVID. The Center did stay open throughout COVID with reduced capacity and was able to sustain operations with as little as 15 children enrolled. *As of the middle of July 2021 enrollment is at approx. 71 kids. We expect the business to have about 75-80 kids enrolled by late August/early September for the 2021/2022 school year. There is no question that the business will quickly get back to traditionally operating capacity within the next 6-9 months. The business has seen stable revenue and cash flow growth over the last several years prior to COVID with outstanding licensing reports. There is ample parking along with well-equipped outdoor play areas.

After nearly two decades of operating the business, the owner has decided to sell the center after a successful tenure of ownership. This represents an excellent opportunity for a new owner to take over a consistently profitable enterprise that’s poised for continued growth. The childcare industry is one of the fastest growing markets, so don’t miss out on this exceptional opportunity and contact us today to learn more!

Please note, the revenue and cash flow claimed is from 2019 and that the historical average performance from 2017-2019 was $764,900 in revenue and $247,846 in owner-operated cash flow. The center maintained strong revenue performance and was cash flow positive despite the impact of COVID, in 2020 Revenue was $578,306 with $89,165 in cash flow and 2021 was $611,344 in revenue with $101,397 in cash flow. As of January 2022, current enrollment stands at 70 kids. Based on historical/pre-covid performance the business is worth over $600k, but the seller is motivated and willing to sell at a reduced price, offering the business for $500,000.

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Property Features and Assets:

The center occupies a 5,609 square foot facility in northern St. Mary’s County, Maryland just off a main thoroughfare with excellent street visibility and signage. There are 7 classrooms, office, kitchen, and a large outdoor playground area. The rent is $7,500/month and the buyer will have the opportunity to secure a new long-term lease with the seller/landlord.

Market Competition and Expansion:

Competition: There is standard competition for the industry and market, but this center is established and has an excellent reputation in the area. Growth & Expansion: There is ample room to grow and expand the operation. The center is licensed for up to 115 individuals, but average historical enrollment has averaged between 95-100 pupils. The business saw a drop off in enrollment due to the pandemic, but it has bounced back with an expected enrollment of 75-80 pupils by the beginning of the 2021/2022 school year.

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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