Deal is Done!

[CPA]

Yesterday evening, my wife and I (actually my wife, since it's her LLC) closed on the purchase of an established daycare. We are both really excited. No more weekends of work for her (she's a retail manager) or late nights closing and the freedom of controlling our own financial destiny.

It's interesting how things work out. The previous owners wanted 90K a year and a half ago, then it was down to 80K a few months ago, with owner financing. We got them down to 55K cash and they still were responsible for paying off the note on the van that we would get in the sale (16K). After commissions and such they only got like 26K out of the place. I don't know whether to feel sad for them or happy for me.

Oh, and NO I won't be watching 50 kids. I just collect the money.

 

[K1052]

Congrats!:beer:

 

[Turkish]

Congrats CPA.

 

[neovan]

a deal RossMAN would be proud of.

congratulations. :beer:

 

[booger711]

Originally posted by: CPA
I just collect the money.

:beer:

 

[BlueWeasel]

:thumbsup: :thumbsup:

 

[HomeBrewerDude]

sounds like a great deal. why were the sellers so desperate?

 

[Ogg]

what a bargain!!!!
:thumbsup:Great news






Got alitlle something, :gift:, for the MILF, I mean wife :Q

 

[pyonir]

Does it come with a MIR?



Congrats CPA!

 

[BigFatCow]

Where in Houston is the daycare? Im in Clear Lake.

 

[maziwanka]

thats awesome. its cool to see all this finally develop (i remember your thread a long time back that asked whether your wife should stick with the retail business or buy this daycare). good luck with it all!

 

[CPA]

Originally posted by: BigFatCow
Where in Houston is the daycare? Im in Clear Lake.

Katy

 

[BigFatCow]

Originally posted by: CPA

Originally posted by: BigFatCow
Where in Houston is the daycare? Im in Clear Lake.

Katy

Cool, thats about an hour away from me.

 

[CPA]

Originally posted by: HomeBrewerDude
sounds like a great deal. why were the sellers so desperate?

My thoughts are that they have a much larger facility that takes all of their time and energy. They are also having trouble getting the enrollment up, so they may need a cash infusion to get it going. If they lose that facility, they probably will just get out of the business all together.

 

[richardycc]

The seller was probably happy to get anything out of the deal, I hope you have a clause in the sale agreement that the seller can't open another daycare within X miles. daycare is a personal business, the parents will follow the people more so than just an established name.
Good luck!

 

[psianime]

Hrm, daycare. That brings back memories of childhood abandonment.

 

[Aquaman]

Congrats.............. remember lots of little kids = perfect sweat shop

Cheers,
Aquaman

 

[CPA]

Originally posted by: richardycc
The seller was probably happy to get anything out of the deal, I hope you have a clause in the sale agreement that the seller can't open another daycare within X miles. daycare is a personal business, the parents will follow the people more so than just an established name.
Good luck!

Yes, we actually have two 5 year non-compete agreements, one for their company and one for them personally. I do not anticipate anyone leaving because our facility is much cheaper than hers.

 

[DaveSimmons]

Congratulations!

You've helped a lot of people here, so don't hesitate to let ATOT know if we can help you guys in return

(Need piles of old PC parts, with razor sharp edges and pointy bits? Books that aren't even close to age-appropriate? M-rated video games? We've got 'em! )

 

[CPA]

Originally posted by: DaveSimmons
Congratulations!

You've helped a lot of people here, so don't hesitate to let ATOT know if we can help you guys in return

(Need piles of old PC parts, with razor sharp edges and pointy bits? Books that aren't even close to age-appropriate? M-rated video games? We've got 'em! )

I do plan on hitting FS/FT soon to pick up a couple of cheap computers for the school. I'll pass on the m-rated games for now, though I personally may be interested in them.

 

[kranky]

Congrats on your new venture, CPA. I also remember your earlier thread talking about whether to take this plunge.

A kranky tip... it turns out that parents see no humor in the game for toddlers I invented: How Many Dimes Can You Fit In Your Mouth? Sure, they are horrified at the thought, but on the plus side, I don't get asked to babysit.

 

[vi edit]

Originally posted by: kranky
Congrats on your new venture, CPA. I also remember your earlier thread talking about whether to take this plunge.

A kranky tip... it turns out that parents see no humor in the game for toddlers I invented: How Many Dimes Can You Fit In Your Mouth? Sure, they are horrified at the thought, but on the plus side, I don't get asked to babysit.

Or the break out game - "How many days does it take to pass then penny!"

 

[kranky]

I like that, vi! I'm going to combine that with another activity I invented for toddlers: Let's Make Our Own Brown Fingerpaint!

 

[Doggiedog]

I don't know about you but I would rather have spent my money on a new BMW or Mercedes.







J/K-Nice buy. Its good to be your own boss. A colleague of mine owns about 4 daycare centers in NJ. Sounds like hard work for your wife though.

 

[RossMAN]

Congrats and what a bargain!