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*.
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# 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.
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# 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.
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# 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*.
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# 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*
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# 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.
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# 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.
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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.
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### 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.
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### 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
