95% Absentee Owner for Childcare with Year After Year Growth
With $13,200 in specialized curriculum and no COVID impact on net income!
With an increasing net income year after year, even in COVID-19, and with a continued high profit margin, this stand-alone childcare facility serves children from 6 weeks to 6 years and older. This childcare specializes in an all-inclusive enrichment, aiming to create a well-rounded learning experience. Investing over $13,200 in curriculum and with a curriculum specialist on staff, there are weekly learning curriculum which involves areas of STEM, music, art and social interaction, there are age appropriate so that all ages can participate.
The current owner is 95% absentee and operates the business remotely with their current responsibilities only including finances and payroll. The staff of 19 employees (15FT and 4PT) includes a Director who runs the day-to-day operations, an Assistant Director, a Curriculum Director, and Teachers.
Located in a 12,000 square foot free-standing building that includes an activity center, lunchroom, 8 separate classrooms, playground, multi-use area, the center is licensed for 125, and has a current attendance of 75-90 children and a capacity of 150. Title XX makes up 60% of enrollments.
With an excellent reputation in the community, this full-scale daycare pulls from a variety of nearby premium schools. Transportation to and from school is provided, and school-aged children can enroll for summer camp and attend full-day childcare on school holidays and snow days.At the purchase price of $960,000, a 12.5% down payment of $120,000 returns $158,924 in the first year which is a 132% return on investment.
- Revenue: $821,116
- Cash Flow: $281,692
- Year Established: 2012
- Location and Service Area: Omaha, Nebraska
- Programs: Infants I, II, & III (6 weeks to 18 months), Toddlers and Twos (18 months to 3 years), Preschool and Pre-K (3 to 5 years), School Age (6 years and up)
- Capacity/Demographics: Licensed for 125 and a capacity of 150 with 75-90 children in attendance – diverse economically, politically, and ethnically
- Lease: 12,000 sq. ft. free-standing at $8,500/month – activity center, lunchroom, 8 separate classrooms, playground, multi-use area
- Reason for Selling: Relocation
- Personnel: 19 — 3 FT management, 11 FT teachers, 3 PT teachers, 1 PT cleaner, 1 FT cook/driver
- Current Owner Responsibilities: Financials and payroll — 95% absentee and currently remote
Throughout the pandemic, this company has fortunately remained open. They service many parents that are essential workers and have has wonderful compliance from staff and parents with the COVID-19 precautions that have been put into place. They have also hired an Omaha public-school paraprofessional to have onsite virtual school for school agers.
Some of the precautions and changes are:
- All parents, staff and school age children are required to wear a mask at on times when in the building or park ground
- All parents are required to use hand sanitizer when dropping/picking up
- Parents are required to wash their child’s hands before entering the classroom when dropping off
- Staff are required to check their temperature daily and wash hands before being their shift
- Staff checks the children in/out to cut down on contamination from tablet use
- Increased policy of 24 hours to 48 hours at home symptom-free and cleared from your doctor to come back for any child sent home with a fever and/or respiratory symptoms
- Decreased 1 hours pick up to 30 mins after the parent is notified to come and pick up a child
COVID-19 has required an increase in cleaning and sanitation. Before the pandemic, they already had a dedicated cleaner that came in from 3pm-6pm. They have kept the cleaner on and increased their workload. This company has also made an effort to deep clean at least once a month, including the carpets.
19 Total Employees — 15 FT and 4 PT
- 1 FT Director
- 1 FT Assistant Director
- 1 FT Curriculum Director
- 3 FT Infant
- 1 PT Infant
- 3 FT Toddler
- 1 PT Toddler
- 3 FT Preschool
- 2 FT Floater
- 1 PT Floater
- 1 PT Cleaner
- 1 FT Cook / Driver
Infants I, II, III (6 weeks to 18 months)
Their precious infants enjoy a large baby room that includes a sleeping area, play area, and eating area. Their entire lower level is equipped with storm proof safety windows, a sprinkler system, and sturdy evacuation cribs for emergencies. They are proud to have an experienced teaching staff with many years of childcare. Parents are informed with daily sheets noting baby’s eating, sleeping, diapers, and milestones.
Toddlers (18 months & 2 years)
They have a room for our one-year-olds and a room for our 18-month olds. They wanted to create spaces for their active babies to spread their wings and try new things. The rooms are lively and full of stimulating toys for sensory experiences, lots of books for literacy, and age-appropriate activities to help the toddlers transition out of the infant room. Parents are informed with daily on Smartcare app noting eating, sleeping, diapers, and milestones.
Two’s (2 years to 3 years)
This is a time for toddlers to interact with their friends and learn in an age-appropriate setting. They enjoy circle time, centers, free play, outdoor time, reading, songs, sensory activities and more. The teachers help the children with potty training and transitioning from one activity to another. Children learn best through play so there is plenty of time throughout the day for children to play. Their teaching staff have arranged their rooms to include learning areas. Some of these areas are dramatic play, blocks, puzzles and library. They have large areas for moving freely and doing large motor activities. The curriculum includes themes, nursery rhymes, numbers, letters, colors, shapes, sign language, feelings and coordinating art projects.
Preschool (3 years)
Their active preschoolers enjoy bright classrooms organized with centers and specific activities to help them learn and grown. They aim to improve gross and fine motor skills, cognitive development, promote imaginative play, and a general understanding of the alphabet and word relationship as well as math, science, art and fitness. They also introduce the children to Spanish words and numbers. The preschool rooms have a set schedule with circle time, library time, curriculum/learning time, centers, games, and outdoor time.
Pre-K (4-5 years)
All the same great classroom structure and curriculum as preschool, with added Kindergarten readiness! Including handwriting, math and spelling introduction with end of year graduation.
School Age (6 years & up)
Before and After School transportation for area schools. Holiday and no-school day care. Summer Camp including field trips, going to the park, games, reading, art, swim days and exploring their world!
- List Price: $690,000
- 2019 Cash Flow: $281,692
- This company has had year over year increase net income from July 2017-October 2020, even with COVID-19:
- July 2017-2018 = $60,000
- 2018-2019 = $72,000
- 2019-Jul 2020 = $125,000
- Jan-Oct 2020 = $135,000
- 2020 on track to do = $163,000
- Assets: $100,075
· Equipment and Inventory: $74,075—office, kitchen, playground, multi-purpose room, art closet, staff breakroom/bathroom, classroom
· Vehicles: $26,000—2 Vans
· Intangible: Curriculum (invested $13,200), highly respected and known, staff engagement
Cash Flow Analysis
|Description of Financial Statement||P&L Statement|
|Net Income Shown on Financial Statement||$135,390||$79,023||$14,350|
|Compensation to Owner||$33,300||$15,385||$33,700|
|11% Tax on total W2 Salaries||$3,663||$1,692||$3,707|
|Professional Development Class||$0||$518||$315|
|Junior League Membership||$200||$225||$200|
|Meals & Entertainment||$0||$788||$787|
|SBA Loan Credit||$-32,829||$0||$0|
|Seller's Cash Flow = Total Addbacks + Net Income||$196,142||$281,692||$140,273|
|Profit Margin||29.48 %||34.31 %||18.65 %|
· Profit Margin 2019: 34%
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