Summer Sale! Reputable Daycare In SW Houston

Business Overview:

TRANSWORLD BUSINESS ADVISORS OF HOUSTON. LISTING REF # 76931-489062

This established, turnkey daycare facility is located in southwest Houston and has been operating as a daycare here for well over a decade. The current owner originally acquired the business in April 2021, and although she has always managed the operations from out of state, has provided the support and overall ownership direction to keep the school operating as a solid operation.

The owner took over the school in July 2021 with 14 enrolled students, which equates to about $110k of annualized revenue. By the end of 2022, there were about 60 children, and full year revenues were $623k. Growth was delivered by retaining the director (at the facility for 14 years, and loved by parents and students), adding an assistant director, and compensating staff fairly and above market. After ramping up, the owner was looking to officially retire and sold the daycare in January, 2023, to an inexperienced new owner. This new owner seemingly got overwhelmed and wanted to return the business to the seller. Ownership transferred back to her, and the daycare again re-opened in July 2023 with 15 kids. As of June, 2024, the daycare is cash flow neutral and trending to positive cash flow in the new school year.

Current enrollment is 52+ children, and the numbers are growing steadily and will continue to do so with proper care. Additional growth opportunities with raising tuition from current low levels, achieving TRS status (initiated) and owner operation.

This is a cash sale only, due to breaks in ownership, and existing re-ramp status.

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Property Features and Assets:

Monthly Rent:$10,100.00

Square Units (Foot, Meter): 5,000

Lease Expiration Date: January 30, 2025, 10:00:00 PM

Terms Options: Available

Facilities:Can reduce by 1,000 Square Feet as well

FF&E Overview: includes van

FF&E General Condition: Good

Market Competition and Expansion:

Competition: Dense area with few options for working class parents.

Expansion: Opportunities include:
• Increasing tuition (much lower than surrounding providers)
• Achieving Texas Rising Star status. This can provide as much as a 10% increase in reimbursement rates, grant opportunities as well as great marketing opportunities.
• Executing every day. The center will continue to organically grow.

Reason for Selling:

Additional Details:

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