Crested Butte South, Colorado
A Colorado Shines Level 4 preschool in Crested Butte — one of the most affluent mountain resort communities in the country — with strong revenue, owned real estate, and an irreplaceable community reputation built over decades.
PURPOSE
This Confidential Business Review, presented by Preschool Exchange LLC & Crest Real Estate Advisors LLC, is intended to acquaint a prospective purchaser with preliminary information regarding the client company (“the Company”) whose business is currently available for acquisition, sale or merger. The format of the Confidential Business Review is designed to reflect to a prospective purchaser the factors that create value within the Company.
This Confidential Business Review is only for furnishing to prospective purchasers that have signed a Confidentiality Agreement and have made a specific request for information regarding the Client Company for the purpose of determining any interest in submitting an offer to acquire the company or its business. Each prospective purchaser is responsible for the performance and expense of the due diligence review prior to any acquisition of a Client Company.
NOTICE OF CONFIDENTIALITY
Preschool Exchange LLC & Crest Real Estate Advisors LLC represents this client on an exclusive basis. The information presented in this document is highly sensitive and confidential and is for use only by those who have signed a Confidentiality Agreement for the purpose of considering the business described herein for acquisition. This Confidential Business Review and the information presented shall be treated as Secret and Confidential and no part of it shall be disclosed to others, except as provided in the Confidentiality Agreement. The Confidential Business Review cannot be reproduced, duplicated or revealed, in whole or in part, or used in any other manner without the prior written permission of Preschool Exchange LLC & Crest Real Estate Advisors LLC or the Client Company. No communications will be made directly to the Client Company and all inquiries will be made through Preschool Exchange LLC & Crest Real Estate Advisors LLC. Should the party have no interest in acquisition of the business, the Confidential Business Review and all information shall be promptly returned to Preschool Exchange LLC & Crest Real Estate Advisors LLC.
DISCLAIMER
The client company has supplied the information contained in this Confidential Business Review. Preschool Exchange LLC & Crest Real Estate Advisors LLC has not audited or otherwise confirmed this information and makes no representations, expressed or implied, as to its accuracy or completeness or the conclusions to be drawn and shall in no way be responsible for the content, accuracy, and truthfulness of such information. Any and all representations shall be made solely by the Client Company as set forth in a signed acquisition agreement or purchase contract, which agreement or contract shall control as to representations and warranties, if any. By requesting this Confidential Business Review, the recipient acknowledges the responsibility to perform a due diligence review prior to any acquisition of or business combination with the Client Company.
The marketing information presented in this Confidential Business Review is the result of management representations and a search utilizing sources and materials considered to be reliable and to contain information deemed to be relevant to the Company.
Any Pro Forma Income Statements or projections presuppose infusion of any necessary operating capital, adequacy of personnel, expertise at all levels of operations and a firm dedication to attain growth. Such pro forma financial information and projections cannot anticipate economic, socioeconomic, and political factors, which might impact any expected or anticipated growth. Accordingly, Preschool Exchange LLC & Crest Real Estate Advisors LLC makes no representations, expressed or implied, as to the validity of any pro forma projections.
Little Red Schoolhouse has been a cornerstone of early childhood education in Crested Butte South for many years. Founded and led by the owner-director, the program was built from the ground up around a philosophy of social-emotional development, independence, and joyful learning — earning it a reputation as the valley’s premier preschool. Operating from a two-building campus that includes the main Little Red facility and the adjacent Teeny Red infant-toddler program, the center has served generations of Crested Butte South and surrounding valley families across age groups ranging from three months through kindergarten-age.
Throughout her tenure, the owner has made continuous investments in the facility — expanded and resurfaced playgrounds, exterior painting, interior upgrades, new office and break room connecting the two buildings, and ongoing systems maintenance. The center earned and has maintained a Colorado Shines Level 4 quality rating and holds a Permanent license as of November 2025. The owner is now transitioning into retirement and is seeking a qualified buyer to carry the school and its legacy forward.
License Number: 1503694 (Colorado CDEC)
License Type: Permanent License
License Issue Date: November 6, 2025 (restored to Permanent following probationary review period completed in 2025)
Licensed Capacity: 49
Ages Served: Infants (3 months), Toddlers, Mixed Preschool/School Age (through 6 years)
Colorado Shines Quality Rating: Level 4 — among the highest quality tiers in Colorado’s voluntary quality improvement system. Level 4 programs demonstrate strong curriculum, staff qualifications, family engagement, and administrative practices.
Subsidies Accepted: Yes — CCCAP (Colorado Child Care Assistance Program)
Licensing Note: The program completed a probationary inspection cycle in 2025 and was fully restored to Permanent license status on November 6, 2025. The center maintained its Colorado Shines Level 4 rating throughout this period. Buyer should plan to apply for a new CDEC license through the standard change-of-ownership process; existing license is not transferable.
Source: Colorado Shines program database, License #1503694. Buyer to verify all licensing information independently prior to closing.
Program Type
Traditional preschool — owner-developed curriculum
Curriculum
Owner-developed, drawing on Pyramid Plus Approach for social-emotional development
Accreditations
Colorado Shines Level 4
Child Care Software
Brightwheel
Part-Time Care
Yes — minimum 2 half-days; flexible combinations from 2 half-days to 5 full days
Drop-In Care
No
After-School Program
No after-school program
Transportation
Not offered; school bus drop-off is available from Crested Butte Community School
Tuition
Registration Fee: $100 first child • $75 second child • $50 third child (billed annually in September)
Sibling Discount: 10% on second child for full-time; 5% for part-time
Little Red Schoolhouse — Monthly Rates (9am drop-off)
| Program | Days/Week | 9am Drop-off | 7:30am Drop-off |
|---|---|---|---|
| Full Day (5pm pickup) | 5 days | $1,210 | $1,333 |
| Full Day (5pm pickup) | 4 days | $1,006 | $1,106 |
| Full Day (5pm pickup) | 3 days | $788 | $863 |
| PreK / 3pm pickup | 5 days | $964 | $1,087 |
| Half Day (1pm pickup) | 5 days | $800 | $923 |
| Half Day (1pm pickup) | 2 days | $365 | $417 |
Teeny Red — Monthly Rates (infants/toddlers)
| Program | Days/Week | 9am Drop-off | 7:30am Drop-off |
|---|---|---|---|
| Full Day (infants under 6 mo) | 5 days | $1,312 | $1,435 |
| Full Day (toddlers) | 5 days | $1,250 | $1,394 |
| Full Day (toddlers) | 3 days | $825 | $900 |
| Half Day (toddlers) | 5 days | $861 | $984 |
Full rate sheet with all drop-off time and day combinations available to qualified buyers. Source: Seller-provided 2024 rate sheet.
Billed monthly. Payments accepted by credit card, ACH, check, and cash.
Subsidy Participation
Accepts CCCAP (Colorado Child Care Assistance Program). Universal PreK scholarships through the state of Colorado also accepted.
Meals Served
AM and PM snacks provided. No meals served (no USDA/CACFP participation).
Food Program (USDA/CACFP)
Not enrolled in USDA/CACFP. Snacks are funded operationally. A new owner could evaluate CACFP enrollment as a potential cost-reduction lever.
Owner Involvement
Owner is the director — full-time involvement. Buyer should plan to either operate as owner-director or hire a qualified CDEC-licensed director prior to or shortly after closing.
Staffing
Staff detail available to qualified buyers during due diligence.
Employee Benefits
No health insurance, workers comp, retirement plan, or paid time off currently offered.
Operational data supplied by seller and deemed to be correct. Buyer to verify all information prior to closing.
Little Red Schoolhouse currently relies primarily on word-of-mouth and a private Facebook page for enrolled families — consistent with how premium preschools operate in close-knit mountain communities. With enrollment near capacity in a market where demand consistently exceeds supply, a focused operator has multiple levers to strengthen revenue and position.
Current Online Presence
Website: crestedbuttelittlered.com • Social: Private Facebook group for enrolled families only
Current Marketing Activity
Channels marked active below. Empty rows = gaps a buyer can act on immediately.
| Active | Channel | Active | Channel |
|---|---|---|---|
| ✓ | Direct referrals / word of mouth | – | Paid digital ads |
| ✓ | Website (crestedbuttelittlered.com) | – | Email campaigns |
| ✓ | Facebook & Instagram | – | Community events / local outreach |
| – | SEO | – | Community partnerships / referral relationships |
| – | CRM / lead management platform | – | Employer-sponsored care contracts |
Enrollment Growth Opportunity
Current enrollment is pending a seller update; licensed capacity is 49. Given the school’s Level 4 quality rating and reputation as the valley’s leading preschool, enrollment has historically run near full. The center shows 1 preschool opening on Colorado Shines as of the time of this writing.
Growth opportunities are presented for informational purposes only. Preschool Exchange LLC & Crest Real Estate Advisors LLC makes no representations as to the outcome of any growth strategy.
Property Overview
Two-building campus: the main Little Red Schoolhouse and the adjacent Teeny Red infant/toddler building, connected by a newly built office and break room. Total building footprint 3,420 SF per county assessor records on 0.31 acres. Property is owned and included in the sale. Buyer to confirm entity and title structure with their attorney.
Year Built
Original structure; significant improvements and additions made through 2024
Zoning
Commercial — Crested Butte South Subdivision (Lot 38, Block 5)
Parking
Improved dirt/gravel driveway; on-site parking available
Property Tax Snapshot
2025 assessed value: $1,283,390 (Commercial, Gunnison County Assessor). 2024 P&L reflects ~$15,293 in property taxes. Buyer to verify current tax obligations with Gunnison County.
Interior Features
4 classrooms (3 groups rotate through one shared space) • 5 restrooms • Kitchen • Director office • Staff lounge • Stackable washer/dryer • Secure keypad front entry • Camera system
Outdoor / Playground
Two separate playgrounds with mixed artificial turf and poured rubber surfacing, shade structure, mounted and movable play equipment (swing sets, slide structures), riding toys, tunnels, and balls. Fenced and secured. Expanded 3 years ago with new fence and new surfacing.
Vehicles Included
None. School bus drop-off service available from Crested Butte Community School.
FF&E
All furniture, fixtures, and equipment used in the operation of the business are included in the sale. Specific exclusions, if any, will be noted in the purchase agreement.
Renovations & Capital Improvements
| Item | Year Completed | Notes |
|---|---|---|
| Office & Break Room (connecting buildings) | ~2022 | New construction with separate entrance connecting main and Teeny Red buildings |
| Playground Expansion | ~2022 | New fence, expanded footprint, new surfacing (turf + poured rubber) |
| Teeny Red Playground Surfacing | ~2023 | New poured rubber surfacing |
| Exterior Painting (both buildings) | 2022 | Full exterior repaint using SBA loan funds |
| Interior Painting (upstairs) | ~2023 | Full repaint of upstairs spaces |
| Interior Touch-Up (all walls) | 2024–2025 | Interior wall touch-ups throughout |
| Decks, Stairs & Walkways | 2024–2025 | Sanded and restained all decks, stairs, and walkways |
| Flooring | Within 5 years | All carpet replaced; new VCT tile installed |
| Roof | Original (snow stops added ~2018) | Original roof structure; snow stops installed approximately 7 years ago |
Renovation and improvement detail supplied by seller. Buyer to independently verify condition and age of all major systems prior to closing.
Major Systems Condition
| System | Condition | Age / Last Serviced |
|---|---|---|
| Roof | Original — maintained | Snow stops added ~2018; no known issues reported |
| HVAC / Heat | Original furnaces — maintained | Multiple upgrades and ongoing maintenance; municipal water and sewer |
| Plumbing | Municipal — no known issues | Municipal water and sewer; 4 handwashing sinks, 5 toilets |
| Electrical | No known issues | Seller reports no outstanding electrical issues |
| Fire Alarm | Not monitored | No monitored fire alarm or sprinkler system |
| Security | Keypad entry + cameras | Secure front door keypad; camera system (parents do not have access) |
Condition information supplied by seller. Buyer to verify through independent inspection.
Floor Plan
View Floor Plan (PDF) →
Little Red Schoolhouse operates with a revenue base of $772,549 in 2025 and a mixed tuition model that includes private pay, CCCAP subsidies, and Colorado Universal PreK scholarships. The P&Ls provided are pre-adjusted by the seller’s accountant; EBITDA reflects normalized operating performance after exclusion of non-recurring, personal, and optional expenses. The seller includes a $42,900 annual rent payment in the P&L (paid to a related holding LLC); buyers acquiring both the business and real estate will not pay this rent to a third party.
Source: Seller-provided profit & loss statements, pre-adjusted by seller’s accountant. All periods reflect full 12-month reporting years. Information supplied by seller and deemed to be correct; buyer to independently verify all financial information.
| P&L Reported 12 Months Ending 12/31/2025 |
P&L Reported 12 Months Ending 12/31/2024 |
P&L Reported 12 Months Ending 12/31/2023 |
||||
|---|---|---|---|---|---|---|
| Amount | % | Amount | % | Amount | % | |
| GROSS REVENUE | ||||||
| Tuition, Fees & Program Revenue | $772,549 | 100% | $713,399 | 100% | $717,633 | 100% |
| Total Operating Income | $772,549 | 100% | $713,399 | 100% | $717,633 | 100% |
| LABOR & PAYROLL | ||||||
| Wages & Salaries | $427,307 | 55.3% | $374,195 | 52.5% | $397,694 | 55.4% |
| Payroll Taxes | $42,225 | 5.5% | $35,833 | 5.0% | $35,934 | 5.0% |
| Retirement Contributions | $16,949 | 2.2% | $13,638 | 1.9% | $6,600 | 0.9% |
| QB Payments, WC & Other Payroll | $17,752 | 2.3% | $22,296 | 3.1% | $25,015 | 3.5% |
| Total Labor & Payroll | $504,233 | 65.3% | $445,962 | 62.5% | $465,243 | 64.8% |
| EDUCATIONAL SUPPLIES & MATERIALS | ||||||
| Supplies & Materials | $10,492 | 1.4% | $9,900 | 1.4% | $18,396 | 2.6% |
| FACILITY EXPENSE | ||||||
| Rent | $42,900 | 5.6% | $42,900 | 6.0% | $42,900 | 6.0% |
| Repairs & Maintenance | $3,419 | 0.4% | $11,161 | 1.6% | $6,081 | 0.8% |
| Utilities (Electric, Gas, Water, Trash, Phone) | $16,148 | 2.1% | $15,661 | 2.2% | $17,601 | 2.5% |
| Property Taxes, SALT Parity & Snow Removal | $3,522 | 0.5% | $7,150 | 1.0% | $24,374 | 3.4% |
| Total Facility | $65,989 | 8.5% | $76,872 | 10.8% | $90,956 | 12.7% |
| GENERAL & ADMIN | ||||||
| Liability Insurance | $10,337 | 1.3% | $8,869 | 1.2% | $8,480 | 1.2% |
| Advertising & Marketing | $846 | 0.1% | $1,343 | 0.2% | $1,366 | 0.2% |
| Auto & Transportation | $2,286 | 0.3% | $3,204 | 0.4% | $1,600 | 0.2% |
| Accounting & Professional Fees | $733 | 0.1% | $4,408 | 0.6% | $2,110 | 0.3% |
| Dues, Subscriptions & Other | $3,226 | 0.4% | $4,071 | 0.6% | $3,693 | 0.5% |
| Total General & Admin | $17,428 | 2.3% | $21,895 | 3.1% | $17,249 | 2.4% |
| Total Expenses | $591,663 | 76.6% | $554,630 | 77.7% | $591,844 | 82.5% |
| OPERATING INCOME | ||||||
| Net Operating Income (EBITDA) | $180,886 | 23.4% | $158,769 | 22.3% | $125,789 | 17.5% |
| ADJUSTMENTS (ADD-BACKS) | ||||||
| P&Ls are pre-adjusted by the seller’s accountant. EBITDA reflects performance after exclusion of non-recurring, personal, and optional expenses. Full detail available during due diligence. | ||||||
| Rent Paid to Related Holding Entity (1) | $42,900 | – | $42,900 | – | $42,900 | – |
| EBITDA (Seller Discretionary Earnings) | $180,886 | 23.4% | $158,769 | 22.3% | $125,789 | 17.5% |
| Total Cash Flow (EBITDA + Rent Add-Back for RE Buyers) | $223,786 | – | $201,669 | – | $168,689 | – |
Notes
(1) The P&L includes $42,900/year in rent paid by the business to the seller’s related real estate holding entity. A buyer purchasing both the business and real estate will not pay rent to a separate holding entity; this amount is available to support debt service on the combined acquisition. 3-year average EBITDA (2023–2025): $155,148. 2-year average (2024–2025): $169,828.
Financial source documents including tax returns, full P&L, and add-backs worksheet are available to qualified buyers during the due diligence process following a signed and accepted Letter of Intent.
At an illustrative conventional structure with 25% down on the $2,300,000 asking price, estimated annual debt service is approximately $171,000 — compared to a 3-year average cash flow of approximately $198,048 (EBITDA + rent add-back). Two financing scenarios are illustrated below so buyers can model the structure that fits their capital position.
The figures below are provided for illustrative purposes only. Actual financing terms will vary based on buyer qualifications, lender requirements, and current market conditions. Consult a qualified lender before making any financing assumptions. Preschool Exchange LLC & Crest Real Estate Advisors LLC makes no representations as to the availability or terms of any financing.
Property Summary
| Asking Price | $2,300,000 |
| Building Size | 3,420 SF (Two Buildings) |
| Lot / Property Size | 0.31 acres |
| Assessed Value (2025) | $1,283,390 (Commercial) |
Financing Scenarios — Illustrative
| Conventional 25% Down |
Conventional 20% Down |
|
|---|---|---|
| Purchase Price | $2,300,000 | $2,300,000 |
| Down Payment | $575,000 (25%) | $460,000 (20%) |
| Loan Amount | $1,725,000 | $1,840,000 |
| Illustrative Rate | ~7.5% | ~7.5% |
| Amortization | 20–25 Years | 20–25 Years |
| Illustrative Monthly Payment | ~$14,227 | ~$15,175 |
| Annual Debt Service | ~$170,724 | ~$182,100 |
Illustrative Cash Flow After Debt Service
| Conv. 25% ~7.5%, 25yr | Conv. 20% ~7.5%, 25yr | |
|---|---|---|
| 3-Year Avg Cash Flow (EBITDA + Rent Add-Back) | $198,048 | $198,048 |
| Less: Annual Debt Service | ($170,724) | ($182,100) |
| Illustrative Cash Flow After Debt Service | $27,324 | $15,948 |
Cash flow figures reflect 3-year average (2023–2025) EBITDA + rent add-back ($42,900/yr) applicable to buyers acquiring both business and real estate. 3-year avg EBITDA: $155,148; 3-year avg cash flow with add-back: $198,048. Conventional rates illustrative at ~7.5%, 25-year amortization. This is a premium mountain resort asset; buyers should discuss deal structure and financing assumptions with a qualified lender. Not presented as a guaranteed return.
Deal Structure
Asset sale. Real estate is held by a related seller entity and is included in the transaction. Buyer to confirm entity structure and title transfer with their attorney and lender prior to closing.
Assets Included
Assets Excluded
Assets Leased
Employees Not Continuing After Closing
No family members of the owner are currently employed at the center. The seller is the owner-director; a buyer should plan to operate as owner-director or hire a CDEC-qualified director prior to or shortly after closing. One experienced staff member has been identified by the seller as having the qualifications to step into a director role if needed.
Owner Training & Transition Support
Seller will remain available for up to 90 days post-closing to assist with staff introductions, family communications, curriculum orientation, Colorado CDEC licensing transition, and community relationship handover. Seller is the current director; buyer should plan accordingly.
Licensing Timeline
Buyer licensing will follow Colorado Department of Early Childhood (CDEC) change-of-ownership requirements. The seller’s existing license is not transferable; a new license application must be submitted. Plan for CDEC timelines early in the transaction. View Colorado Child Care Licensing Guidance →
Buyer Process
Phase 1
BIF + NDA
Complete buyer information form and sign NDA to access full packet
Phase 2
Review Packet
Review confidential materials, financials, and facility details
Phase 3
Submit LOI
Submit Letter of Intent with proposed terms for seller review
Phase 4
Due Diligence
Accepted LOI opens due diligence — full financials, records, facility access
Phase 5
Purchase Agreement
Negotiate and execute purchase agreement with attorney guidance
Phase 6
Closing
Closing, transition support & proration → Funding & transfer of operations
Map shown for location reference only. Source: Google Maps.
Located at 49 Gillaspey Ave in Crested Butte South, Colorado (Gunnison County), Little Red Schoolhouse sits at the heart of one of the most affluent mountain resort communities in the United States. Within 1 mile, median household income is $174,846 and median net worth is $887,088. Within 3 miles there are 80 children under age 5 and 82 children ages 5–9 — a strong feeder pool for a 49-licensed-capacity center with a Level 4 quality rating and decades of community trust.
Market Demographics
Source: ESRI Business Analyst. Data reflects 2025 current-year estimates for rings centered on 49 Gillaspey Ave, Crested Butte South, CO 81224.
Crested Butte South is the primary residential community of the Crested Butte valley — a close-knit, established neighborhood six miles from the resort town of Crested Butte where most year-round locals live. The broader Crested Butte area is a small, affluent mountain community with one of the highest median household incomes and median net worth figures of any childcare market in the country. The ESRI 1-mile ring captures a population of 1,361 with a median household income of $174,846 and median net worth of $887,088 — a client base with both the means and the expectation for premium early childhood education. The 79% homeownership rate signals a stable, year-round residential population alongside a robust seasonal resort economy.
Within 3 miles, there are 80 children under age 5 and 82 children ages 5–9 — meaningful demand for a 49-licensed-capacity center in a market with very limited licensed childcare options. Little Red Schoolhouse has held a Colorado Shines Level 4 rating and operated as the valley’s recognized preschool leader for years, creating a level of community trust that a new entrant would take years to build. Current openings on Colorado Shines show the center near full capacity.
Crested Butte’s year-round economy — anchored by ski season, mountain biking season, and a growing remote-work residential base — provides demand stability across seasons. The center’s flexible enrollment structure (from 2 half-days to 5 full days) is well-matched to a community with varied schedules. An owner willing to expand digital marketing, develop an after-school program, or engage the seasonal workforce community has clear paths to strengthen an already-strong business.
Preschool Exchange • Crest Real Estate Advisors
Preschool Exchange is one of the only business brokerages in the country dedicated exclusively to childcare center transactions. Paired with Crest Real Estate Advisors, the team handles both the business and real estate components of each sale — providing sellers and buyers with specialized expertise that a generalist broker cannot match.
Chelsea Reue
Child Care Sales Specialist • Preschool Exchange | Crest Real Estate Advisors, LLC
Chelsea Reue is a childcare business sales specialist and active preschool owner with firsthand experience on both sides of the transaction. She has operated a licensed childcare center in Texas, which means when she advises sellers on operations, valuation, and positioning, she speaks from real experience, not theory.
Chelsea specializes exclusively in childcare business sales, with a focus on transactions that include real estate. She works with owners who are ready to exit strategically, helping them protect their legacy, maximize their outcome, and transition with confidence.
She is a licensed real estate agent in Texas and a sales specialist at Preschool Exchange.
Phone: (832) 924-6022
Thinking About Selling Someday?
Owners who plan their exit 2–3 years in advance consistently achieve better outcomes — stronger valuations, smoother transitions, and fewer surprises. Chelsea works with owners at every stage, from early positioning through closing day.
Resources for Preschool Owners
Business of Preschool Podcast
Practical strategy for preschool owners on valuation, exit planning, operations, and profitability.
YouTube Channel
Video resources covering childcare valuation, buyer conversations, enrollment strategy, and exit readiness.
Free Resource Library
Templates, guides, and tools for preschool owners preparing for growth, sale, or transition.
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