Ref. No - BFS938136

LocationSouth Africa, Gauteng

Ref. No - BFS938136

Sector - Services

Asking Price
R3,850,000
Monthly Profit
R54,841
Asset Value
R 3,270,000
Stock Value
R 0
Yearly Net Profit
R 658,090

Summary

Established ECD centre offering full- and half-day care for infants through Grade R, with extended weekday hours and care during most school holidays. Includes an ELDA and CAPS-aligned school-readiness programme, supervised indoor/outdoor play, and meals/snacks, with daily operations led by a dedicated principal. Strong recurring fee income with clear scope to improve occupancy and expand paid add-ons.

Give me more information

Fully describe the business's activities?

Early childhood development centre offering full- and half-day care for infants and preschoolers up to Grade R. Services include structured school-readiness learning aligned to ELDA and CAPS, supervised indoor and outdoor play, daily routines and rest periods, and nutritious meals and snacks. The centre also offers selected extra-mural activities and provides care during most school holidays, with extended weekday hours to support working families.

How long has the owner had the business?

Since 2014

How does the business operate on a daily basis?

On a typical weekday, children arrive and settle into supervised play before moving into age-appropriate classes for a structured morning programme that balances educator-led early learning and school-readiness activities with creative play and routine-based care. The day includes scheduled outdoor play, regular meal and snack times, and a midday rest period for younger children, followed by quieter activities and supervised afternoon care. A dedicated principal oversees the centre’s daily operations, supporting staff, ensuring consistent routines, and maintaining quality and safety standards. Selected enrichment or extra-mural sessions are integrated into the weekly timetable, and parents collect children throughout the afternoon within operating hours

How are the clients attracted to the business?

New enrolments are typically generated through parent referrals and the centre’s online presence, including its website and active social media pages where programmes, facilities, operating hours and enrolment information are shared with prospective families.

Does the business have any contract work?

The centre does not typically undertake contract work; instead, each parent or guardian enters into an enrolment agreement, with terms and conditions that set out the fees, operating hours, policies, and the rights and responsibilities of both parties.

How could the profitability of the business be improved?

Profitability could be improved primarily by increasing enrolment towards licensed capacity (thereby spreading fixed costs across more learners), supported by consistent digital marketing and strong referral incentives. Additional upside can be generated by optimising fee structures and packages (e.g., full-day vs half-day, aftercare and holiday care), introducing carefully selected paid enrichment programmes, and tightening cost controls.

Give a breakdown of staff/ functions/ length of service?

7 x Teachers
1 x assistant
1 x Chef
1 x Principal

Do any have management potential?

Yes. A dedicated principal who leads day-to-day operations, sets clear standards, and provides consistent oversight of staff, routines, compliance and parent communication.

How involved is the Owner in running the business?

The owner’s involvement in day-to-day operations is limited; they provide overall oversight and are primarily responsible for stock procurement and key purchasing decisions.

When does the current lease end?

The property and buildings are sold with the school.

What are the main assets of the business?

Classroom furniture.
Strong inverter system - solar panel ready.
Educational toys and equipment.
Hygiene and cleaning equipment.
Health and safety equipment.
Outdoor equipment.
A comprehensive list will be supplied to serious buyers.

Strengths?

• Structured early learning and school-readiness programme aligned to ELDA and CAPS.
• Extended weekday hours and care during most school holidays, supporting working families.
• Dedicated principal providing strong day-to-day leadership, consistent routines, and quality/safety oversight.
• Meals and snacks included, plus supervised indoor/outdoor play and selected enrichment activities.
• Owner involvement is limited, indicating operational stability and potential to run with delegated management.

Weaknesses?

• Seasonal softness at the start of the year can reduce short-term cash flow.
• Revenue is largely dependent on monthly fees; limited diversification outside core childcare services.
• Capacity utilisation may fluctuate; under-enrolment increases cost per learner due to fixed overheads.

Opportunities?

• Increase enrolment through consistent website/social media content, improved lead handling, and referral incentives.
• Introduce or expand paid add-ons (aftercare, holiday care, enrichment programmes) to lift average revenue per learner.
• Optimise packages and annual fee reviews to better reflect operating costs and market positioning.

Threats?

• Rising input costs (food, utilities, maintenance, staffing) that can compress margins if fees do not keep pace.
• Economic pressure on households, leading to delayed enrolment decisions or fee affordability constraints.

What is the reason for the sale?

The owner wishes to retire.

Why is this a good business?

This business is an attractive acquisition due to its operationally stable model with recurring monthly fee income and predictable weekday routines, supported by a dedicated principal who manages day-to-day operations and helps ensure continuity through an ownership change. Demand is underpinned by the value working families place on extended hours, holiday care and a structured school-readiness programme. With limited owner dependence (oversight and procurement only), a buyer can focus on growth initiatives such as improving occupancy, refining packages and pricing, adding paid enrichment programmes, and tightening cost controls to further improve profitability.
Location

Contact | Enquire

Tommie

Tommie Cronje

LocationSouth Africa, Gauteng

Preferred method of contact

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