Two-Campus Licensed Child Care Business with Real Estate — 199 Slots, 98% Full, Waitlists
Education & Children Businesses for Sale
- Primary Category: Preschools for Sale
Own a 35-year-old, two-campus early childhood education business and the real estate under both schools, in one of Michigan's most affluent counties.
This well-established, state-licensed child care and preschool operator runs two centers in separate Washtenaw County communities, with a combined licensed capacity of 199 children in 12 classrooms. The larger campus has 8 classrooms and the second campus has 4. Families enroll children from 6 weeks old through school age. The centers report 98% utilization and waitlists at both locations, and that demand comes almost entirely from word of mouth. FY2025 advertising was only $3,741, about 0.2% of revenue.
The business is growing. Gross receipts rose 15.2% in FY2025 to $2,119,277, with Seller's Discretionary Earnings of $256,244. That SDE is already net of the $96,000 in annual rent the school pays for both buildings. Interim results through August 2026 annualize to about $2.31 million in total income. Tuition is billed weekly through ProCare, receivables run under 1%, and the owners report average tuition increases of 5–7% a year.
This is a director-led, semi-absentee operation. Each campus has an experienced on-site Director, both expected to remain, and a bookkeeper handles daily bookwork, payroll and monthly statements. The owners do not run daily classroom operations. Their role is mainly light maintenance and general oversight.
The real estate is included. Both school properties, about 12.5 acres and 11,800 square feet of school space in total, are part of the offering. The larger campus sits on about 9.8 acres in a country setting, with room to grow. A buyer who acquires both becomes their own landlord, keeps the $96,000 annual rent in-house, controls occupancy costs and expansion, and gets a hard-asset base that lenders favor. Combined, the business and the real estate produced $348,142 of owner benefit in FY2025.
This is a rare chance to acquire a profitable, fully staffed, multi-site child care platform with owned real estate, in a market where licensed child care is in short supply.
Financial Information
- $3,500,000 Asking Price
- $348,142 Cash Flow
- $2,119,277 Gross Revenue
- N/A Down Payment
- N/A Adjusted EBITDA
Business Location
- City: Ann Arbor
- State: Michigan
Reason for Sale
- Retirement
Detailed information
- Year Established: 1983
- Home Based: No
- Franchise: No
- Relocatable: No
- Lender Prequalified: No
- SBA Prequalified: No
- Part-Time Employees: N/A
- Contractors: N/A
- Owner Worked Hours/w: N/A
- Inventory Included: Yes
- Inventory Value: N/A
- Monthly Rent: N/A
- Real Estate Available: Yes
- Real Estate Included: Yes
- Real Estate Value: $2,100,000
- Building Size: 11800
- FF&E Included?: Yes
- FF&E Value: N/A
Training/Support
- Transition and training will be negotiated in the purchase agreement. Both campus Directors are expected to remain after the sale.
Facilities
- 35+ year reputation. Child care since 1983, with a multi-generational base of families and siblings. Two licensed centers, 199 slots, 12 classrooms. 8 classrooms at the larger campus and 4 at the second, across two separate markets. Demand exceeds capacity. 98% utilization and waitlists at both centers, with almost no advertising spend. Real estate included. About 12.5 acres and two school buildings, so the buyer carries no third-party lease risk. Strong, growing revenue. $2.12M in FY2025 gross receipts (+15.2%), with 2026 annualized total income of about $2.31M. Management in place. Dedicated Directors at each campus. Well suited to semi-absentee owners, multi-unit operators and investors. Recurring weekly revenue. Weekly tuition billing, A/R under 1%, and steady 5–7% annual price increases. Public funding channels. Revenue includes the State of Michigan child care subsidy and free state PreK (GSRP) reimbursement. One campus is a listed GSRP site for 2026–27. Full age continuum. Infant, toddler, preschool, pre-K, before and after school, summer camp and school-closing care keep families enrolled for years. Low leverage. About $175K in notes payable against about $769K in total business assets at FY2025 year-end. Existing debt is paid off by the seller at closing. Programs & Operations Infant program (about 6 weeks–1 year), with individualized feeding, sleeping and diapering schedules set with parents Toddler program, building large and fine motor skills and sensory skills in a structured setting Preschool and pre-K, with limited pre-K class sizes focused on kindergarten readiness Before and after school care, including bus pick-up and drop-off and transportation to a nearby charter academy at the larger campus All-day summer camp June–August, plus care on public school closing days and half-days Creative Curriculum, a play-based, hands-on approach with daily learning centers for language arts, writing, math, sensory and technology Flexible scheduling: full-day and half-day programs, a two-day-per-week minimum, and alternating schedules for nurses, doctors and other shift workers, which competitors don't offer Hours: Monday–Friday, 6:00 AM – 6:00 PM, year-round, with no snow days
Real Estate Description
- Both centers are handicap accessible, with age-specific classrooms, child-height windows and fully fenced outdoor play areas divided by age, with swings, climbers, slides, sand areas and tricycle paths. Classroom furniture, fixtures and equipment for all 12 rooms, the outdoor play equipment and a school van are included in the sale. The seller reports that the assets are in good condition and that annual capital maintenance runs about $20,000.
Business Listed by
Art Crosby
Sunbelt of Greater DetroitContact Business Broker
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