Two Location Large Capacity Daycares PLUS RE

Business Overview:

TRANSWORLD BUSINESS ADVISORS OF HOUSTON. LISTING REF # 76931-611918

This listing is for two locations of large capacity daycares - one owned real estate, one leased - for the amount of $1,290,000, PLUS real estate of owned location for an additional $3,700,000, for a total project of $4,990,000.

The business portion is not SBA lendable at this time. Buyer will need a minimum of $1.8 million of cash available for down payment, plus the ability to finance the real estate through alternative bank / investor lending.

Available for immediate consideration is a pair of top rated, leading early learning schools located in the Houston Metro area. Originally established in 2009, these reputable daycares have been a staple in the community offering local school district supported learning curriculum, including STEAM based and hands on learning created to prepare students to excel in kindergarten and beyond.

Acquired by existing ownership in 2019, these centers are running primarily absentee with limited ownership interference. Owners are investors and operate other businesses outside Houston and the state. Both locations are overseen by a regional manager, and each has a Director and Assistant Director on site that manages the day to day. While this has proven to be very successful, owners feel that more hands-on participation will enable the schools to maximize capacity, which is a combined number of 385 enrolled students. Current enrollment is approximately 250.

Despite acquiring the daycares prior to COVID and the challenges that resulted, they built the locations up and combined revenue in 2023 was right at $2.9M. 2024 was expected to be over $3m, however, one location had a director challenge which resulted in some turnover, but has steadily been rebounding. Combined average enrollment is approx. 64%, and with a little more owner involvement revenues could be maximized accordingly, with the majority resulting in an increased bottom line. Considerable grant monies were received during COVID period, and even with removing those, SDE ranges from 14-21% and EBITDA 11-16%.

2024 did result in positive SDE, but the turnover issue did dilute some earnings, which impacted the SBA eligibility of this deal. As a result, the business will need to be acquired for cash.

This opportunity is ideal for an experienced, multi-location daycare provider, that can take advantage of efficiencies in overhead and is experienced with optimal student/teacher ratios.

At this time, only buyers interested in purchasing both daycare centers AND the real estate will be considered. Real estate is listed for an additional $3,700,000, in addition to the $1,290,000 business price, for a combined purchase of about $4.990M.

These schools are in excellent, turnkey condition, fully staffed with directors and ADs in each location, and require no capex or any material improvements.

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Property Features and Assets:

Real Estate Asking Price: $3,700,000.00

Monthly Rent: $27,200.00
Square Units (Foot, Meter): 11,000
Lease Expiration Date: April 29, 2034, 10:00:00 PM
Terms Options: Additional terms available

Facilities:One facility owned, available for $3.7m. Second location, free standing as well. Both had a complete refresh in 2021-2022 and no capex improvements are required.

FF&E Overview: Modernized and refreshed in 2021/22

FF&E General Condition: Excellent

Market Competition and Expansion:

Expansion: 

o Optimize go to market strategy
o Make GoogleAds and other digital marketing campaigns more efficient
o Works with local employers to offer daycare services to the employees as a preferred location
o Owner operator involvement to maximize enrollment

Reason for Selling:

Additional Details:

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