Summary

This school operates from a purpose-renovated property in an upmarket area with easy access to all main arterial routes and shopping centres/businesses. It feeds into sought-after senior schools in the area. The asking price of R3.8 million includes the property.

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Fully describe the business's activities?

A beautifully set up nursery school in an upmarket northern suburb of Johannesburg. The fully renovated property is part of the sale.

How does the business operate on a daily basis?

The school is currently part of a larger group owned by the seller. The seller's other schools and businesses operate in a totally different area of Johannesburg and she is finding it difficult to manage this school properly because of the distance. They have managed to grow the school nicely after the effects of the Covid pandemic had an impact on the number of children registered. The owner is not involved in the business on a daily basis and is reliant on staff at the premises to run the school and interact with parents etc.

How could the profitability of the business be improved?

More of a social media presence to create awareness of the school. More kids means more revenue and profits. The school has permissions for 80 Kids and can be moved to 100 kids with correct planning.

Do any have management potential?

The school is currently managed by staff but this school will be immediately more profitable if it was owner operated.

How involved is the Owner in running the business?

Not much - probably less than 20%.

When does the current lease end?

The building is included in the asking price of R3.8 million. The seller owns the building in a separate entity of which the property is the only asset thus making the purchase of the building an easy transaction by purchasing the shares of the company. The property is an attractive purposely-renovated building on a quiet street of an upmarket Northern Suburb of Johannesburg. It is close to all main arterial routes and shopping centres.

What are the trading hours?

Monday to Friday: 6.30 am to 5.30 pm.

What are the main assets of the business?

The main Asset is the purpose-renovated property and buildings. The other main assets are desks, chairs, computers, toys, jungle gyms etc. An asset list will be provided to interested parties.

Strengths?

The business is situated in a generally wealthy catchment area. There are excellent primary schools in the area which makes it attractive for families who want to send their children on to these schools when they have finished at nursery school.

Weaknesses?

Marketing via social media needs to be managed and the number of kids increased. The platform currently provided is perfect to take this business to the next level.

Opportunities?

There are a number of new complexes in the area being developed at all times and the families in these complexes need to be made aware of the school right up front.

Threats?

Normal economic conditions - but parents have to send their children to school - so largely this is not a problem.

What is the reason for the sale?

The business is part of a larger group and the owner is not able to give this school the management attention it needs due to the distance from the other businesses she owns.