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Early Childhood Academy

A Los Angeles Montessori preschool run absentee for over a decade, licensed for 91 students against 45 currently enrolled, with the real estate included.

Business Highlights

  • Genuinely absentee: managed remotely for over ten years, with the owner visiting only a few times a year
  • Real estate is included in the sale, carrying a $2.6M appraisal
  • Licensed for up to 91 students against 45 currently enrolled
  • Six to seven employees handle all instruction and daily operations
  • Curriculum spans practical life skills, language, math, science, art, music and Spanish

Considerations / Questions to Ask

  • The licence allows 91 students and 45 are enrolled. Is the gap a demand problem, a staffing constraint, or a deliberate choice?
  • How is the $2.6M real estate appraisal reflected in the asking price, and does the business support that debt on current enrolment?
  • Absentee operation depends entirely on the staff. What is the director's tenure, and are they staying?
  • What are the licensing requirements in California for a change of ownership, and what does the buyer need to hold personally?
  • What is the enrolment trend and the waitlist, if any?

Opportunities

  • Filling the licensed capacity is the whole thesis. Forty-six more places are already permitted, needing no construction or new licence
  • Tuition is recurring monthly revenue, so each additional enrolment compounds rather than being a one-off sale
  • An owner willing to be present, rather than absentee, has an obvious lever the current owner has not pulled
  • The property gives a buyer options including sale-leaseback or refinancing