Child Care Centre for Sale

Located in the Townsville region this freehold child care centre has been established since 1999. Licensed for 45 places on over 1,100 sq meters of land. Idyllic surrounding, situated on the coast. Currently fully managed as owners based in Cairns.

The Childcare Centre is offered for sale as a going concern, the freehold may attract GST as there is currently no lease between the entities, this can be explained better by your accountant and GST may form part of the contract. The freehold (including land and building) is estimated at approximately $580,000 and the business including licence, good will, plant and equipment at $220,000.

The investment required is $800,000 plus GST on freehold if applicable

There are a number of purchasers that use a per place method of appraising the value of a childcare centre, in this case the child care centre asking price per place is $17,777 ex GST on the freehold if applicable which we believe is very reasonable considering the location and the possibility of expansion.

As for a return on investment if you consider this proposition as “under management” then it is estimated the ROI is about 17.8%. However if you are an owner operator then assuming an add back of the director's salary estimated at $40,000 pa the ROI is closer to 22.8%.

An owner operator or an astute investor who is prepared to wait and grow the business will also benefit from capital growth in the freehold value and profitability.

To obtain more information on this great childcare centre contact us to obtain a confidentiality agreement.