Huge 6300 ft. Childcare Center For Sale in Papillion

1788

A capacity of 90 children in this huge 6300 ft. Childcare
Center in Papillion is located in a popular district. The
business grew so fast that in 2011 it relocated to an
expansive 6,300 square foot location with a large, 1,800
square foot playground and very low utilities which are all
included in the rent. There are growth opportunities in
adding an after school care program, picking up children
from schools, and becoming part of the state food
program. This business is well-staffed and has 2 full-time
and 13 part-time teachers who are fully certified by the
State of Nebraska. There are 66 enrolled kids with profit
of $81,224 annually, which means having the ability to
gain 24 more children is mostly profit.
Since 2011, this busy childcare center has quadrupled
gross sales and more than doubled its cash flow. With a
down payment of $31,750, after paying all expenses and
loans, the buyer would make $40,872 Net Operating
Income within the first year of owning this business.

Financial Overview
List Price: $254,000
Gross Sales:
2015: $409,352 (Annualized)
2014: $335,329
2013: $253,009
2012: $206,960
2011: $112,526
Owner Profit/Cash Flow
2014: $81,224
2013: $34,897
Growth/Sales Trends: 40% growth from 2012-2015
Profit Margin: 24% in 2014
Multiple: 3.13 (Multiples range from 1-5, with the average being 3)
Valuation: 2014 Cash Flow x Multiple = Price
$81,224 x 3.13 = $254,231

Assets Included in Purchase: $59,120
Equipment: $58,440
Inventory: $680
*amounts may vary
Business Information
Year Established: 2008
Location and Service Area: Papillion, NE
Capacity: 90 Children
Current Enrollment: 66 with 37 full time and 29 part time
Lease: $5,200 all utilities included for 6,300 square feet
which is only $9.90/foot
Reason for Selling: Semi-retirement
Employees: 2 Full Time, 13 Part Time
Hours: 7:30 AM-5:45PM Monday-Friday
Seller Training Period: Through the current school year
Growth Opportunities: After School program, school pick
up, state food program
Current Owner’s Responsibilities: Management of staff and
bookkeeping

Funding Example
Purchase Price: $254,000
12.5% Buyer Down Payment: $31,750
17.5% Seller Financing: $44,450 (5 yrs @ 4%)
70% Bank Loan: $177,800 (7 yrs @ 5.25%)
With the above funding example, an incoming buyer
would profit $40,872 after all loan payments are made,
which is a 128% return on investment from the initial
down payment.

Facilities:

Capacity: 90 Children Lease: $5,200 all utilities included for 6,300 square feet which is only $9.90/foot

Growth Potential:

After School program, school pick up, state food program

Training/Support:

Through the current school year

Seller Financing:

17.5% Seller Financing: $44,450 (5 yrs @ 4%)

Sale Reason:

Semi-retirement