Summary: 
Situated in a premium shopping complex in a neighborhood with an $85,000 median income
Business Type: 
other service
Business Type: 
service
Location: 
Nebraska
Price: 
$425,000
Sales Revenue: 
$677,653
Cash Flow: 
$137,339
Realestate Included: 
No
Employees: 
20
Internal Listing:: 
CHI019
Reason for Sale: 
Divestiture

Situated in a premium shopping complex in a neighborhood with an $85,000 median income. This well placed daycare has over 17,500 drivers pass by daily, is located only 2 blocks from the nearest elementary school and just under 4 blocks from the nearest middle school. Business is steady and thriving with a 20% profit margin resulting from $677,653 Gross Sales and 137,339 Owner Profit. The current owner has groomed the business to sustain a 7.7% year over year Gross Sales increase and 7.9% Year over year increase in Owner Profit, both well over the ~2% average year over year Consumer Price Index. All staff are required to either have a minimum of five years of experience or an education related degree in order to be employed and the building has a secure keycard access system for parents and guardians. This premium childcare facility’s location enables parents and guardians to maximize their time by having access to other premium goods and services in the same shopping center. Rounding out this value proposition, the childcare has an excellent professional website and a well maintained social media presence with many positive reviews.
With a $63,750 down payment, the new owner can expect to profit $71,527 (Net Operating Income), or a 112% return on their payment within the first year after all debts and expenses are paid.

Financial Overview
List Price: $425,000
Gross Sales
2015: $677,653 annualized
2014: $625,464
Owner Profit/Cash Flow
2015: $137,339 annualized
2014: $126,508
YOY Growth/Sales Trends: 7.7% year over year gross sales increase, 7.9% Year over year increase in owner profit, both well over the ~2% average year over year Consumer Price Index
Profit Margin: 20%
Multiple: 3.2 *Multiples range from 1-5, with the average being 3
Valuation: 2015 Cash Flow x Multiple = Price
$137,339 x 3.2 = $439,484

Assets Included in Purchase: $20,000 + all FF&E
Vehicles: $20,000 (3 vans used for transportation)
Furnishings, Fixtures and Equipment (FF&E): Fully-furnished and operational childcare; all current assets included in the purchase (tables, chairs, materials) and large indoor play area
Intangible Assets: Professional website and well-maintained social media presence, excellent online reviews
*amounts may vary
Business Information
Year Established: 2006
Location: Southwest Omaha
Facility: 6,400 square feet featuring a large indoor play area
Staff: 20 fully-trained employees
Title XX: 10-12 children; accounts for only 12.4% of income (vast majority of parents pay directly)
Capacity: Licensed for 115 children
Current Enrollment: 102
Average Daily Attendance: 90
Reason for Selling: Divestiture
Hours: Monday through Friday 6:00 a.m. to 6:00 p.m.

Funding Example
Purchase Price: $425,000
15% Buyer Down Payment: $63,750
18% Seller Financing: $76,500
67% Bank Loan: $284,750
With a $63,750 down payment, the new owner can expect to profit $71,527 (Net Operating Income), or a 112% return on their payment within the first year after all debts and expenses are paid.

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