"Selling your business is our business"
"Selling your business is our business"
Fully describe the business's activities?
Established in 1967, this well-regarded preschool has a long-standing reputation for excellence in early childhood education. Registered with both the Gauteng Education and Health Departments, the school provides exceptional care and education for children aged 3 months to 6 years. With a spacious, secure, and COVID-19-compliant environment, the preschool features modern facilities, a shaded playground, and a robust curriculum that includes cognitive development, computer skills, music, and brain gym activities.
Currently led by an Acting Principal with extensive industry experience, the preschool is supported by a team of professional and dedicated educators. Known for its individualized attention, high-quality resources, and affordable tuition, this preschool is a trusted choice in the community and an excellent investment opportunity for those passionate about early childhood education.
How does the business operate on a daily basis?
The preschool operates through a structured, yet flexible daily routine designed to support the developmental needs of young children. The day begins with welcoming children and ensuring a smooth transition from home to school. Activities are carefully planned to balance learning, play, and rest.
Morning sessions typically include circle time for group interaction, storytelling, and songs, followed by structured educational activities aligned with the curriculum. Children participate in hands-on learning, such as arts and crafts, cognitive games, and sensory play, fostering creativity and skill development.
Midday includes a healthy, nutritious meal or snack, followed by outdoor play in a secure playground to encourage physical activity and social interaction. Afternoon sessions focus on quieter activities, such as individual learning, puzzles, or naptime for younger children.
Staff conduct regular progress assessments, provide individual attention as needed, and ensure a safe, sanitized, and engaging environment throughout the day. The schedule may also include enrichment programs like music, computer skills, or special themed activities to further support holistic development.
Effective communication with parents is maintained through daily updates and regular feedback to ensure each childâs growth and well-being.
How are the clients attracted to the business?
Website
Word of mouth
Referrals
Location based advertising
What are the seasonal trends?
Enrollment typically peaks at the start of the academic year or term, as parents seek structured education and care for their children. Mid-year enrollments may occur due to relocations or families seeking better facilities.
Demand often dips slightly during holiday periods when families take vacations, although extended care services can attract working parents. Seasonal changes also impact the curriculum and activities, with themes and programs tailored to events like spring festivals, winter celebrations, or back-to-school readiness.
During colder months, thereâs an increased focus on indoor activities and health precautions, while warmer seasons highlight outdoor play and field trips. Marketing efforts often ramp up before enrolment periods to attract new families. Additionally, year-end evaluations and graduations create opportunities to showcase the preschoolâs successes, contributing to sustained interest and referrals.
Are there up-to-date Management Accounts available?
Yes, will be disclosed during due diligence
What Balance Sheet and Income Statements are available?
Yes, will be disclosed during due diligence
What percentage of the business is cash/credit?
The primary income sources are tuition fees, registration fees, and optional program charges, typically collected on a monthly or termly basis. These funds cover daily expenses such as staff salaries, utilities, supplies, and routine maintenance. Additional revenue may come from aftercare services, holiday programs, or fundraising events.
How could the profitability of the business be improved?
With 37 students already enrolled for 2025 and 8 after-school program participants, they are on track to reach 50 enrolments before the school year begins. The facility is approved to accommodate up to 130 children, offering significant potential for expansion and increased revenue. This presents an incredible opportunity for new owners to grow the business and tap into the full capacity of this thriving preschool.
What is the total staff complement?
11 staff members
Give a breakdown of staff/ functions/ length of service?
5 ECD Practitioners
2 Assistant ECD Practitioners
2 cooks
1 cleaning staff
1 Gardner
Are they on contract?
Yes all on contract
How involved is the Owner in running the business?
The current owner manages the business's financial operations but is primarily engaged in another occupation that demands their daily attention.
What are the trading hours?
6.00 a.m to 6.00 pm Monday to Friday
What is the square meters of the business?
2900 sqm
What are the main assets of the business?
Property
Vehicle
Computers
educational equipment
educational furniture
What is their overall condition?
Good working condition
Are they presently insured?
Yes all is insured
Strengths?
Established Reputation: Long-standing presence in the community with a proven track record of quality education and care.
Qualified Staff: Experienced, professional, and committed educators and support staff.
Comprehensive Curriculum: Holistic programs incorporating academics, arts, physical activities, and technology.
Safe and Modern Facilities: Secure, sanitized environment with high-tech educational resources and a spacious playground.
Regulatory Compliance: Registered with education and health authorities, ensuring adherence to industry standards.
Strong Parent Relationships: Transparent communication, regular progress reports, and community engagement.
Weaknesses?
Limited Marketing Efforts: Potential lack of visibility among new families or in growing areas.
Capacity Utilization: Under-enrollment compared to the facilityâs approved capacity.
Dependence on Owner: Operational or financial reliance on the current ownerâs involvement.
Seasonal Revenue Variability: Fluctuations in enrolment during holidays or off-peak seasons.
Opportunities?
Expansion Potential: Room to grow enrollment to full capacity.
Community Growth: Increasing demand due to new residential developments or population growth in the area.
Additional Services: Opportunities to offer after-school care, holiday programs, or specialized enrichment classes.
Digital Marketing: Enhancing online presence to attract tech-savvy parents.
Partnerships: Collaborations with local businesses, schools, or community programs to boost visibility and enrolment.
Threats?
Market Competition: Other preschools or childcare providers in the area offering similar services.
Economic Factors: Rising costs, economic downturns, or financial constraints affecting familiesâ ability to afford tuition.
Regulatory Changes: New policies or standards that may increase operational costs or require additional compliance efforts.
Staff Turnover: Difficulty retaining skilled staff in a competitive market.
What is the reason for the sale?
The business is being sold due to the unfortunate passing of the current owner. The executor of the estate, acting on instructions from the beneficiaries, has been tasked with facilitating the sale of the preschool. This presents a unique opportunity for a new owner to build on the strong foundation and legacy established by the previous owner.
Annual Turnover Amount between R 500 thousand and R 6 million
