Owner Absentee Childcare Acquisition Opportunity in Philadelphia

Business Description

HS Listing ID-70651

*Industry:* Childcare / Childhood Education

*Business Type:* Independent Daycare Center (Non-Franchise)

*Location:* Philadelphia, Pennsylvania

*Established:* 2012

*Current Facility:* Single childcare center (after consolidation during COVID)

# Business Evolution

The company has undergone several stages of growth and consolidation:

1. *2012* – Home-based childcare launched

2. Expanded to *group childcare facility*

3. Opened *two daycare centers* in Philadelphia

4. During COVID:

* Closed one location

* Closed home daycare

* Consolidated operations into a single center

5. Current location operating since *2017*

The current center is approaching *10 years at the same location*.

—

# Current Operations

## Management Structure

The business currently operates *absentee-owned*.

Owner responsibilities (handled remotely):

* Curriculum implementation

* Payroll

* Supply and food ordering

* Administrative oversight

* Strategic management

Day-to-day operations handled by:

* *Director onsite*

* Staff responsible for daily childcare operations

Owner has *not physically been onsite in nearly three years*.

This indicates a semi-passive ownership structure.

—

# Financial Snapshot (Initial)

Revenue

* Current revenue: *~$30K–$32K per month*

* Approximate annual revenue: *$360K – $384K*

However:

* Revenue declined temporarily due to a state rating issue

* Center lost *~40% of revenue for ~11 months*

Reason:

* Staff turnover caused the center to lose its *Keystone STARS Level 4 rating*

* Staff had to complete required education/training

* Rating has now been restored and revenue is recovering.

—

# Capacity & Program Structure

* Facility capacity: *60 children*

* Center participates in Pennsylvania’s *Keystone STARS quality rating program*

* Formerly participated in a *child nutrition subsidy program*

Food program details:

* Paid the center approximately *$7,000 per month*

* Program reimburses childcare providers for meals

* Program discontinued when owner became absentee

Potential opportunity for buyer to *reinstate program and increase revenue*.

—

# Lease & Real Estate

* Owner *does not own the building*

* Current lease has *12 months remaining*

* Owner has the *option to extend the lease for another 5 years*

* Must notify landlord *by December*

—

# Seller Motivation

Primary drivers:

* Owner *no longer lives in Philadelphia*

* Wants to *exit the Philadelphia market*

* Lease expiration approaching

Seller options currently being considered:

1. Sell business to a buyer

2. Transition ownership to director or local operator

3. Liquidate assets and exit

Seller is open to a *3–6 month transition period* for a buyer.

—

# Key Operational Strengths

### 1. Absentee Ownership Model

The owner has been absent for nearly three years, demonstrating the business can operate without daily owner involvement.

This significantly increases buyer appeal.

—

2. Established Brand & Longevity

* In operation since *2012*

* Nearly *10 years at the current location*

* Recognized in the local childcare market

Longevity is critical for daycare acquisitions.

—

### 3. Keystone STARS Quality Certification

The center operates under the *Pennsylvania Keystone STARS program*, which is a major indicator of quality and eligibility for funding.

—

### 4. Growth Through Simple Operational Improvements

Buyer opportunities include:

* Reinstating the *child nutrition program (~$7K/month revenue)*

* Increasing enrollment toward full capacity

* Expanding curriculum programs

* Increasing tuition pricing

A SIGNED CONFIDENTIALITY AGREEMENT IS REQUIRED FOR THE EXACT LOCATION

Ad#:2494525

Additional details: - Listing status: Active - Revenue: $370,000 - EBITDA: Not Disclosed - Cash flow: $80,000 - Reason for selling: Other business interests. - Real estate: Leased - Intermediary: Demerik Weglinski · Hedgestone Business Advisors · 754-600-4989 - Source listing: https://www.bizbuysell.com/business-opportunity/owner-absentee-childcare-acquisition-opportunity-in-philadelphia/2494525/

Franchise System Information