HomeSOLD – Established & Well-Known Community Childcare Center in Prince William County, Virginia

SOLD – Established & Well-Known Community Childcare Center in Prince William County, Virginia

  • Business Type: Educational Services
  • Asking Price: 200000.00
  • Gross Revenue: 468985.00
  • Cash Flow: 124945.00
  • FF&E Value: 17500.00
  • FF&E Included in Sale: Yes
  • Inventory Value:
  • Inventory Included in Sale: No
  • Real Estate Value: $
  • Real Estate Included in Sale: No
  • State: Virginia
  • City/County: Prince William
  • Year Established: 2013
  • Employees: 8
  • Listing Number: HZ474DZ
  • Listing Broker: Dustin Zeher
  • Broker Contact: 571-437-5135
  • Broker Email: dustin@horizonbrokers.com
  • Business Summary: Great opportunity to acquire a well-known, established, and reputable neighborhood childcare center in desirable Prince William County! The center has been established since 2013 providing care to the local community in a comfortable, stimulating environment for children. Prior to COVID, the business saw stable and increasing revenues as well as strong cash flow performance. The business didn't perform terribly in 2020 despite the pandemic impacting business, has stabilized in 2021, and is on its way back to pre-COVID performance levels. On average, the center was at max capacity of 50 kids. Currently (as of end of July 2021) at 34 kids with a wait list and high demand for some age groups. The center does not provide newborn care so that would be a huge opportunity for a new operator. Capacity of the center can very easily be increased to about 70 kids with some minor reconfiguration of the space.

    The childcare industry has been rapidly growing and once people go back to work the demand is going to be even higher as several independent and franchise centers have closed or combined into one, at home daycares so there is significantly less available care available. Currently the owner is the active director and there is an Asst Director in place, but there is enough positive cash flow for the business to support paying a Director (cost would be around $50k/yr) if the buyer has other businesses or would like to be a semi-absentee to absentee owner and still produce a positive cash flow. This is a great investment opportunity for someone looking to get into the childcare industry or for a seasoned operator looking to add to their existing portfolio.

    Please note that the numbers claimed above are based on the business's average performance from 2017-2019 prior to COVID where the center was at or very close to capacity. 2020's performance with COVID's impact the business generated $443,762 in Gross Revenue and an owner operated Cash Flow of $98,924. Based on the current financial performance of 2021 from Jan-June the business has already generated approx $226,951 in Gross Revenue and an owner operated Cash Flow of $51,869 so if the trend continues the business should generate around $453,902 in revenue with an owner operated cash flow of $103,738 which is right in line with revenue and cash flow from 2017 & 2018 as 2019 was its recent best year generating $550,060 in Gross Revenue and an owner operated Cash Flow of $156,670. Due to health reasons, family, and other business interests this business is priced at $200,000 for a quick sale, which is below market value which is estimated to be approx. $250-300k. The landlord is even offering several months of free base rent and reduced base rent which makes this an even more appealing opportunity! If you are interested contact us today as we truly don’t expect this business will last long in this rapidly rebounding market!

  • Description of Facilities: The center operates from a 3,030 sq ft space in a neighborhood retail center with grocery anchor store as well as several nationally recognized retailers and restaurants. The space is leased for approx. $5,667/mo. and with a current lease term through Sept 2028. The center has 5 classrooms with the ability to expand to 7 classrooms. It is conveniently located at the corner of a major, highly trafficked intersection on route 234 that is minutes away from interstate 95 making the center very convenient for neighborhood families as well as those commuting.

    Childcare Center Info:
    Total Enrollment Capacity: 50 (with ability to go to approx. 70 kids with minimal effort to take one large room not currently used for childcare into two additional classrooms)
    Current Enrollment: 34
    Average Yearly Enrollment: 50
    Number of Rooms: 4 (currently) with ability for 5
    Managing Director (Is the Business Owner the Director or is there an Employed Director): Business Owner is the director – there is an Asst. Director in place.
    Is the center part of any state Subsidy Program (Yes/No): No.
    Part of NACCRA program for gov/military
    If yes, what is the % of parent pay vs state subsidy?: n/a
    Is the center part of any state Food Program (Yes/No): No

  • Competition: There is standard competition in the local market, but all other centers nearby that are currently in operation are full and on a waiting list.
  • Growth & Expansion: There is lots of room for growth for a new active operator with Before & After School Care Programs that can add 41 kids. In addition, the center can be reconfigured with little to no construction to add an additional room which would potentially provide for another 20 kids. Currently the center does not provide newborn care so that would be a huge area of opportunity for a new operator. A new owner may want to get even more involved with the community and local schools to increase awareness as well as implement a more robust marketing and advertising program.
  • Seller Financing Available: Yes
  • Seller Financing Terms: Available depending on the final purchase price, terms, and qualifications of the buyer.
  • Reason For Sale: Owner is retiring due to health concerns.
  • Seller Support & Training: Seller will provide reasonable amount of transitional training and support.
  • Get More Information: To learn more about this business including the name, location, and financial information please complete and return our Buyers Package, which can also be downloaded here, and returned to us at admin@horizonbrokers.com.
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Great opportunity to acquire a well-known, established, and reputable neighborhood childcare center in desirable Prince William County! The center has been established since 2013 providing care to the local community in a comfortable, stimulating environment for children. Prior to COVID, the business saw stable and increasing revenues as well as strong cash flow performance. The business didn’t perform terribly in 2020 despite the pandemic impacting business, has stabilized in 2021, and is on its way back to pre-COVID performance levels.
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