Established Daycare Center in PG County Maryland

Not Disclosed, MD
Prince George's County


Asking Price: Annual Revenue:
$900,000 $1,035,045

Services: Children - Child Care, Education


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RE: Established Daycare Center in PG County Maryland 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: $900,000
Annual Revenue: $1,035,045
Net Profit: Not Disclosed
Cash Flow: $268,129
Total Debt: Not Disclosed
FF&E: $150,000
Real Estate: $1,800,000
Year Established: 1975
Employees: 19
BBN Listing #: 485332377
Broker Reference #: HZ477DZ

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Business Overview:

Excellent opportunity to own an established and reputable daycare center that has been serving the Prince George’s County market for over 40 years. The center is situated just off a main thoroughfare and conveniently located in close proximity to 495. There is a total of 9 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 including before and after school programs for children up to 12 years old with a maximum capacity of 138 children in total. 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 staple 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 September 2021, enrollment stands at 108 kids, which is roughly 78% of full capacity and within 7% of historic enrollment numbers which averaged around 116 children. The business has shown stable revenue and cash flow numbers over the last three years with compliant licensing reports. There is ample parking along with a nicely equipped outdoor play area.

After over forty years of operating the business, the owner has decided to sell the center along with the Real Estate. 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 DC area in recent years, so don’t miss out on the chance to own a well-known center with Real Estate in a prime Prince George’s County location.

*Please note, the revenue and cash flow numbers claimed are based on prehistoric performance from 2017-2019 which provided an average revenue of approx. $1,035,045 and an average owner operated (with the owner/buyer being the director) cash flow of approx. $268,129.

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Property Features and Assets:

The center occupies a 6,834 square foot standalone building situated just off a main thoroughfare with good street visibility in Prince George’s County, MD. The center is located inside the beltway in close proximity to 495. There are 9 classrooms, an office, 2 fenced outdoor activity areas/playgrounds and plenty of storage throughout the building. The building is well maintained with a new roof installed in 2017, new paint and carpet in 2020, and a new HVAC unit in 2021. Childcare Center Info: Total Enrollment Capacity: 138 Current Enrollment: 108 Number of Rooms: 9 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): Yes If yes, what is the % of parent pay vs state subsidy?: 55% Is the center part of any state Food Program (Yes/No): No

Market Competition and Expansion:

Competition: Standard competition for the industry and market, but this center has been established for over 40 years and has a strong 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 sits at roughly 78% of full capacity, which is close to historic levels. This presents the future owner with the ability to grow and expand the business based on current figures.

Reason for Selling:

Owner is retiring.

Additional Details:

  • The property is owned.
  • 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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