Established & Highly Rated Daycare Center

Not Disclosed, MD
Anne Arundel County


Asking Price: Annual Revenue:
Not Disclosed $985,927

Services: Children - Child Care, Education


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RE: Established & Highly Rated 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: Not Disclosed
Annual Revenue: $985,927
Net Profit: Not Disclosed
Cash Flow: $246,867
Total Debt: Not Disclosed
FF&E: $158,475
Real Estate: Not Disclosed
Year Established: 2005
Employees: 17
BBN Listing #: 185132377
Broker Reference #: HZ442DZ

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Business Overview:

Great opportunity to own an established and reputable daycare that has been serving the Anne Arundel County market for 15 years. The center is situated in a growing part of the county nearby several large commercial and residential areas. There are 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 5 including before and after school programs for children up to 15 with a maximum capacity of approx. 90 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 be fully enrolled at max capacity with a waiting list. *Currently, due to COVID-19 the center did see a drop in enrollment (after closing for about 2.5 months it reopened at approx 20% capacity) but as of the beginning of March 2021 enrollment is at approx 65-70% capacity. There is no question that the business will quickly get back to full licensed capacity when the economy fully opens back up with people back to work on site and kids back in school needing childcare more than ever. The business has seen stable revenue and cash flow growth over the last three years (2017-2019) with outstanding licensing reports. The business accepts both privately paid tuition and subsidized care payments with the latter traditionally comprising less than 1% of overall revenue. There is ample parking along with well-equipped outdoor play areas.

After nearly a decade of operating the business, the owners have 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 stated revenue and cash flow figures in the listing are based on an avg of the past three years prior to covid and what we project to be obtainable within the next year or sooner. The average 3 year revenue from 2017-2019 was approximately $985,927 with an average owner operated cash flow of $246,867 as the center was fully enrolled with nearly 100 pupils and had a waiting list. For 2020, these figures were down about 27.5% with revenues of approximately $727,008 and an owner operated cash flow of approximately $145,346. This drop off is understandable and was largely due COVID practically forcing the center to be closed for nearly 2.5 months. The current 3 year revenue average (2018-2020) would be $909,321 and the current 3 year owner operated cash flow average would be $215,883. The center is currently around 65-70% capacity and is seeing demand continue to increase as other centers in the area have closed or have limited capacity.

The business previously was on the market (taken off due to COVID and PPP Loan Forgiveness) with an asking price of $599,995 with multiple offers. The sellers are motivated to sell so they are accepting reasonable offers. Private showings can be arranged on weekends.***

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Property Features and Assets:

The center occupies a 6,500 square foot facility in a retail strip setting located in northern Anne Arundel County, Maryland off a main road with street visibility and signage. There are 7 classrooms, office, kitchen, and fully fenced-in playground area. The rent is approximately $9,631/month and the buyer will have the opportunity to secure a new long-term lease.

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 ability to remodel the current space or even expand into the adjacent building to increase the physical size and capacity of the business.

Reason for Selling:

Owners would like to focus on other interests.

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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