Scaled Child Care Platform Opportunity

131-License Campus | Long-Term Leasehold | Stabilized Cash Flow with Upside

This offering represents a rare opportunity to acquire a large-scale, well-established child care business operating from a purpose-built campus with long-term, below-market occupancy costs in a dense Southern California trade area.

The business is licensed for 131 children, operates near capacity with consistent demand, and is supported by an experienced, director-led team. The current ownership structure is largely absentee, creating a clear path for a focused operator to enhance performance without operational disruption.

Investment Highlights

• Licensed for 131 children with enrollment consistently near capacity

• ~$1.34M in annual gross revenue

• $550K–$640K adjusted EBITDA (normalized for owner compensation and non-recurring items)

• Long-term recorded leasehold interest with approximately 39 years remaining

• Extremely low occupancy cost relative to replacement economics

• Turnkey operations with established systems and staff in place

• Director-run day-to-day operations, limiting transition risk

• Balanced subsidy mix (~35%) providing stability without capping upside

• CACFP participation offsets food and kitchen labor costs

Why This Opportunity Stands Out

• Scale without entitlement risk
  Large licensed capacity already in place, avoiding licensing, zoning, or expansion hurdles common in California.

• Occupancy cost advantage
  Long-term leasehold structure locks in occupancy costs far below market rent, materially enhancing cash-on-cash returns.

• Absentee ownership normalization
  The business has been maintained conservatively under family ownership, with limited focus on optimization. New ownership can unlock upside through attention, not reinvention.

• Platform-friendly asset
  Ideal for a multi-site operator or regional platform seeking immediate scale, centralized efficiencies, and predictable cash flow.

Upside Opportunities (Optional, Not Required)

• Tuition normalization
  Current tuition is among the lowest in the surrounding market. A modest 5–10% adjustment is supported by waitlists and historical enrollment stability.

• Operational tightening
  Scheduling discipline, purchasing leverage, and consistent oversight offer margin improvement without structural changes.

• Focused ownership
  Increased owner engagement alone presents meaningful upside, as the business is currently managed primarily by on-site leadership.

Staffing & Continuity

• Experienced director in place

• Established teaching staff

• Staff expected to remain post-sale

• No immediate hiring pressure

• Short transition support (30–60 days) available to ensure continuity

Leasehold & Financing Considerations

• Recorded long-term leasehold interest with clear remaining term

• CPI-based rent adjustments with a defined floor

• Structure supports long-term financing

• SBA financing considered feasible based on cash flow and lease profile

• Financials available for lender review upon request

Transaction Overview

• Business sale

• Asset or stock structure considered

• Clean transition with short seller support period

• Sellers are motivated yet disciplined

• Process designed for serious, qualified buyers

Next Steps

Qualified buyers are encouraged to:

• Review the Offering Memorandum

• Evaluate the financial and operational profile

• Submit an indication of interest or Letter of Intent when ready

This is a rare opportunity to acquire scale, stability, and upside in one of California’s most supply-constrained child care markets.