business for sale

Education Centre “Kip Mcgrath Franchise”

Businesses for Sale

Sale Memorandum

Education Centre
“Kip Mcgrath Franchise”


Ref.CC066

Location The Midlands

Asking Price £ 149,000

Confidential offered for sale

Turnover for 2007 is circa £170,000 generating a net profit of circa £120,000
Asking price includes: All classroom and office fixtures fittings and computer hardware.
Finance available to buy this business subject to status. All regulated business is passed to independent financial advisors who are regulated by the FSA

Business profile:

The first Kip McGrath Education Centre was established in Australia in 1976 and in the 31 years since then the Kip McGrath name and excellent reputation has developed into a world wide franchise business with over 400 centres in operation in 18 different countries. The location of this centre which is offered for sale due to the vendor’s retirement is in the West Midlands and has been established since 2003. The Centre tutors students aged 5 to 16 in English, Reading, Spelling and Maths. Sessions take place with extensive written material and supported by computer based programs.

The personalised programs of study, which are aligned to the National Curriculum, are designed to give students the motivation to succeed. Progress is at the students' own pace so they are never overwhelmed and by focusing and emphasising the positive qualities of each student, failure is eliminated. Students work with (not against) the Centre’s tutors because for many a first rule understanding of the subject material is achievable and equally as important, this achievement is not only rewarding but fun too.

A careful balance of challenging and achievable activities ensures that the student experiences only success, which builds confidence and independence and helps develop a love of learning. The Centre caters for both primary and secondary level children of all abilities, including those who are high achievers, underachieving or may have learning difficulties. Each pupil is given an assessment to determine their needs. Parents concerns are discussed and the results of assessments are further discussed confidentially.
There is no pressure brought to bear on the students to perform to pre-set levels and as a result challenges are both realistically achievable and reachable and success is therefore guaranteed. Each 80 minute lesson consists of carefully chosen learning activities, including a mix of written, oral and computer work and Tutors are able to closely monitor each activity to ensure focused, effective learning takes place.

The large and affluent residential area surrounding this educational centre boasts highly regarded Grammar schools. As places within these schools are very much sought after there is a substantial, constant and profitable demand for eleven plus tutorage.

Equipment:

The price of the business includes the materials needed to run the centre at its current level of 160 students, this includes computers, desks, chairs, bookcases, printers, photocopier etc thus providing the new owners with a turn-key “trade from day one, profit from day one” opportunity. The price also includes full “in-house” training and ongoing support from the Franchisors to ensure the smooth running and continued profitability of the business.
Premises:

The business is located in an easily accessible and affluent area of the Midlands and operates from prime position 1st and 2nd floor premises of approximately 1,000 square feet that offers 3 good size classrooms. The business benefits from main road frontage with ample local public parking, plus 2 off street private parking spaces for staff / employees. The premises are Leasehold held on lease of circa 5 years with a rent payable annually at circa £8,500. The asking price includes all fixtures and fittings and capital equipment thus providing the new owners with a turn-key “trade from day one, profit from day one” opportunity!

Business Hours:

The current trading hours are:
Mon-Fri 4.00pm to 7.00 & Sat 9.00am to 5.00pm.
Advertising and Marketing:

The business is highly credible and has in the most part historically relied upon limited local press advertising and the best form of advertising “word of mouth recommendations” bearing testimony to the excellent reputation it has established. There are excellent opportunities to significantly increase turnover by adopting a far more pro-active approach to marketing the centre’s facilities.
Financial profile:
The business is being offered for sale on a going concern basis, all financial discussions will take place directly between the vendor and all interested parties under the auspices of Turner Butler.
The business is financially stable with no borrowings, low overheads, positive cash flow, good gross and net profit and has shown excellent year on year growth. Turnover for 2007 is circa £170,000 generating a net profit of circa £120,000. With new ideas and a willingness to extend the trading hours to include midweek daytime tutorage the business could dramatically increase its revenues.
Employees:

In addition to the Vendors, the centre has access to a nucleus of 12 experienced local Teachers and Teaching Assistants who it is able to call upon to provide tutorage at a fixed hourly rate as and when required.
Support and Training

The present owners are willing to assist the buyer in whatever way they can and will provide a comprehensive handover ensuring a seamless transition for both the owner and students alike. Should it be required one of the current owners (a qualified Teacher with over 30 years of experience) may be prepared to provide ongoing consultancy and teaching.
Reason for Sale:

This is a genuine retirement sale opportunity. There will be amazing opportunities opening up in 2008 and the business needs a new owner with drive and energy to maximise on the yet unexploited and true potential.
Turner Butler Disclosure Statement:

This statement applies to information relating to any company or other undertaking or business advertised for sale by Turner Butler (a 'Business')

The information supplied by Turner Butler on its website or in any other promotional material ('the Information') is not and is not intended to constitute an offer for sale of the Business or any assets of the Business or of the shares of any company which owns the Business.

For the avoidance of doubt there is no intention to create a legal relationship which will only come into existence when a written contract for sale and purchase of the shares in or the Business has been entered into

The Information provided is not intended to address your particular requirements. Further the Information does not constitute any form of advice recommendation representation endorsement or arrangement by Turner Butler and is not intended to be relied upon in making (or refraining from making) any specific decisions.

Any agreements transactions or other arrangements made between you and any client of Turner Butler are at your sole risk and responsibility. The prospective sellers of the Business have provided the Information to Turner Butler. The Information has not been verified by Turner Butler.

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This document is governed by and shall be construed in accordance with English Law and any dispute arising in connection with it shall be subject to the non-exclusive jurisdiction of the English courts

Turner & Co (GB) Limited registered in England and Wales under company no. 2477988 of registered office Savoy House Savoy Circus London W3 7DA, trading as Turner Butler © Shaun Sweeney October 2006

Next steps

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