Austin, Texas
Established Austin childcare center with a strong local reputation, a leased facility, and seller-identified growth opportunities.
Texas law requires all license holders to provide the Information About Brokerage Services form to prospective clients.
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.
Happy Bunnies Child Care School has been a cornerstone of the Oak Hill community in Austin, Texas since the facility first opened as Child’s Way Creative Learning Center in 1993. For over three decades, families in southwest Austin have trusted this location to care for and educate their youngest children. In 2018, the school was taken over by its current owner and renamed Happy Bunnies Child Care School, bringing a renewed focus on play-based learning rooted in a well-proven early years curriculum.
Under the current ownership, Happy Bunnies has earned 5-star ratings across Google, Yelp, and Facebook, with parents consistently describing the school as “more like family” and “a home away from home.” The center holds Texas Rising Star accreditation—the state’s quality rating for childcare providers—and is recognized as Texas School Ready. The owner has served as hands-on director for eight years, building deep relationships with families and staff while maintaining a stable, well-run operation.
With a purpose-built facility, a loyal parent community, and a strong local reputation built over 30+ years at this address, Happy Bunnies represents a rare opportunity to acquire an established childcare brand with real history and genuine community trust.
Operation Number: 1668465
License Type: Licensed Center — Full Permit
Permit Issued: September 28, 2018
Permit Renewal Due: September 28, 2026
Ages Served: Infant, Toddler, Pre-Kindergarten, School Age
Subsidies Accepted: Yes — Child Care Scholarships (State Level)
Latest Inspection: December 10, 2025 — Monitoring Inspection. 726 standards evaluated, 726 compliant. Zero deficiencies.
TRS (Texas Rising Star): 3 out of 4 Stars certified. Accepts child care subsidies.
Source: Texas HHS Child Care Search, Operation #1668465. Buyer to verify all licensing information independently prior to closing.
Program Type & Curriculum
Traditional program with play-based learning. Curriculum: Frog Street. Part-time options include full days (8–5), half days (9–2), and 2-, 3-, or 5-day schedules.
Tuition
Billed monthly. Payments accepted by check, e-check, credit card, or debit card. Registration fee: $150.
| Age Group | Part-Time (3 days, 9–2) | Full-Time (5 days, 8–5) |
|---|---|---|
| 0–12 months | $799/mo | $1,350/mo |
| 12–24 months | $792/mo | $1,290/mo |
| 24–36 months | $786/mo | $1,290/mo |
| 36 months+ | $766/mo | $1,250/mo |
Source: happybunnies.com. 2- and 5-day schedules also available. Rates subject to change; buyer to verify current schedule with seller.
Child Care Software Used
Brightwheel
Transportation
Transportation is not currently offered. This represents a potential expansion opportunity for a buyer.
After-School
No after-school program currently offered. Adding an after-school club represents a meaningful growth opportunity for a new owner.
Subsidy Participation
Yes — state-level child care subsidies accepted (Child Care Scholarships).
Meals Served / Food Program
No meals are currently served and the center does not participate in CACFP. Adding a meals program and enrolling in CACFP represents a meaningful growth opportunity for a new owner — CACFP reimbursements can generate additional monthly income and participation often attracts a broader base of subsidy-eligible families, improving both enrollment and revenue stability.
Enrollment Detail
Happy Bunnies is licensed for 95 children across 6 classrooms. Current weekly attendance is 40–42 children, representing 35.07 FTE. Additionally, 4 former students return during school holidays. FTE data below reflects the most recently available period (updated May 2026 per seller).
Enrollment by Classroom — FTE (Full Time Equivalency)
| Classroom | Licensed Spaces | FTE Enrollment |
|---|---|---|
| Infants — Younger Babies | 10 | 6.02 |
| Infants — Older Babies | 10 | 6.93 |
| Younger Toddlers | 18 | 3.89 |
| Two Year Olds | 22 | 9.56 |
| Pre-K 4 | 18 | 8.67 |
| Total | 96 Licensed | 35.07 FTE (weekly attendance 40–42) |
FTE accounts for part-time schedules and is not equivalent to headcount. Current period enrollment per seller Q&A. Licensed spaces per classroom sourced from Texas HHS licensing records. Buyer to verify all enrollment information prior to closing.
Staffing & Owner Role
Full-Time Staff
8 full-time employees
Part-Time Staff
0 part-time employees
Employee Manual
Yes
Payroll System
ADP
Pay Frequency
Bi-weekly
Wage Range
$16–$20/hr. Detailed role breakdown available upon request.
Owner Role
The current owner serves as director and has held that role for 8 years. Responsibilities include program oversight, family relationships, daily operations, administration, and financial management. A new buyer will be required to assume the director role or hire a qualified replacement.
Employee Benefits
| Benefit | Notes |
|---|---|
| Holiday Pay | Offered |
| Supplemental Insurance | Cancer, dental, and similar supplemental coverages offered |
| Workers Compensation Insurance | Provided |
| PTO | 1 week after 1 year; 2 weeks after 2 years |
Seller-provided benefits list. Full-time versus part-time eligibility not confirmed; verify with seller.
Happy Bunnies has built a strong local reputation over 30+ years at this address, with 5-star ratings across Google, Yelp, and Facebook. The center benefits from active word-of-mouth referrals and an established online presence. A focused owner has meaningful upside available — from expanded programming and CACFP participation to stronger digital marketing and enrollment growth. Specific opportunities are detailed below.
The business is currently implementing the following marketing initiatives to promote the brand and increase enrollment:
| Active | Channel | Active | Channel |
|---|---|---|---|
| ✓ | Direct referrals / word of mouth | – | Paid digital ads |
| ✓ | Website — www.happybunnies.com | – | Email campaigns |
| ✓ | Facebook & Instagram | – | Community events / local outreach |
| ✓ | SEO | – | Community partnerships / referral relationships |
| ✓ | CRM / lead management platform | – | Employer-sponsored care contracts |
Program Expansion
Industry-Wide Growth Trends
Workforce Solutions Subsidy Reimbursement Opportunity
Happy Bunnies is located in the Capital Area Workforce Board area. Centers that accept Workforce Solutions subsidy are reimbursed at the following daily rates per enrolled child. Rates increase with Texas Rising Star (TRS) quality rating — each additional star level represents higher per-child reimbursement on every subsidized child, every day of attendance.
| Age Group | Unrated (Reg) |
TRS 2★ | TRS 3★ | TRS 4★ |
|---|---|---|---|---|
| Infant (0–11 mo) | $62.40 | $65.53 | $66.85 | $68.20 |
| Toddler (18–23 mo) | $59.60 | $62.59 | $63.85 | $65.14 |
| Preschool (3 yr) | $56.60 | $59.44 | $60.64 | $61.86 |
| School Age (6–13 yr) | $52.60 | $55.24 | $56.36 | $57.50 |
Rates are daily, full-time, Licensed Child Care Center (LCCC). Source: TWC Board Contract Year 2026 Child Care Provider Payment Rates (Capital Area-14). Rates are subject to annual revision. Participation in Workforce Solutions subsidy requires center eligibility and TWC enrollment. Preschool Exchange LLC makes no representations as to reimbursement amounts or eligibility.
CACFP Meal Reimbursement Opportunity
Centers enrolled in the Child and Adult Care Food Program (CACFP) receive federal reimbursement for meals served to enrolled children. Reimbursement is paid per meal served, at rates that vary by the child’s eligibility tier.
| Meal | Free | Reduced-Price | Paid (Full) |
|---|---|---|---|
| Breakfast | $2.46 | $2.16 | $0.40 |
| Lunch / Supper | $4.60 | $4.20 | $0.44 |
| Snack | $1.26 | $0.63 | $0.11 |
Rates are per meal served, per child. Lunch and supper also include an additional $0.305/meal cash-in-lieu of commodities. Source: USDA CACFP Reimbursement Rates 2025–2026 (effective July 1, 2025); rates are updated annually. CACFP enrollment and reimbursement eligibility are subject to USDA and state agency requirements. Preschool Exchange LLC makes no representations as to participation eligibility or reimbursement outcomes.
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.
Virtual Tour
Take an interactive 360° virtual tour of the facility: View Virtual Tour →
Property Overview
The business operates from one leased, purpose-built school building of approximately 4,950 SF.
Lease Terms
NNN (triple net) lease. 2026 base rent: $8,113.50/mo. Tax recovery (operating expenses): $1,658.63/mo. Total monthly occupancy cost: $9,772.13/mo. No personal guarantee required. Current lease expires December 2027. Facility is purpose-built for childcare use. Lease renewal and assignability to be confirmed with landlord during due diligence; sale will be conditional on successful lease transfer to buyer.
Building Layout
6 classrooms • 8 toilets • 4 handwashing sinks • 1 three-compartment sink • 1 mop sink • 9 exterior exits
Interior Features
Kitchen • Office • Staff lounge • Reception area • Washer/Dryer
Outdoor / Playground
2 playgrounds with 3 climbing frames, wood chip and pebble surfacing, and shade structure.
Safety / Security
Monitored security system, secure front door entry, and camera system. No sprinkler system reported.
FF&E
Furniture, fixtures, and equipment used in the operation are expected to transfer with the business unless otherwise excluded in the purchase agreement.
Recent Improvements Reported by Seller
| Item | Notes |
|---|---|
| Flooring | Updated within the past 5 years |
| HVAC | Recent improvement |
| Doors | 3 new doors |
| Solar Tunnels | Added for more light |
Improvement detail supplied by seller. Buyer to independently verify condition and age of all systems.
Floor Plan
View Floor Plan (PDF) →
Happy Bunnies is offered as an asset acquisition opportunity — a licensed, established childcare center with a strong local brand, purpose-built leased facility, and 30+ years of community presence. Revenue was strong and consistent in 2023 and 2024 ($820K and $826K respectively), before declining in 2025 to $590K, driven by public school PreK expansion and a CCS subsidy funding freeze in Travis County. Most recent reported monthly revenue (March 2026) was approximately $49,600. The center has been accepted into the TEFA voucher program and expects enrollment improvement as that program launches. A buyer with operational focus and enrollment growth strategy is well-positioned to stabilize and grow the business. Add-backs are seller-provided. Full financial detail and source documents are available to qualified buyers during the due diligence process following a signed and accepted Letter of Intent.
Source: Seller-provided profit & loss statements. Years noted in column headers. All periods are 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 & Program Fees | $590,230 | 100% | $825,560 | 100% | $820,081 | 100% |
| Other Income (Interest + Other Revenue) | $1,526 | 0.3% | $2,752 | 0.3% | $2,903 | 0.4% |
| Total Operating Income | $591,756 | 100% | $828,312 | 100% | $822,985 | 100% |
| OPERATING EXPENSES | ||||||
| Wages & Salaries | $333,262 | 56.3% | $456,261 | 55.1% | $454,526 | 55.2% |
| Payroll Tax | $82,499 | 13.9% | $114,445 | 13.8% | $104,864 | 12.7% |
| Rent | $118,071 | 19.9% | $70,650 | 8.5% | $107,360 | 13.0% |
| Insurance | $9,475 | 1.6% | $9,911 | 1.2% | $10,005 | 1.2% |
| Repairs & Maintenance | $13,776 | 2.3% | $11,115 | 1.3% | $46,239 | 5.6% |
| Utilities | $15,163 | 2.6% | $12,476 | 1.5% | $12,736 | 1.5% |
| Advertising | $9,547 | 1.6% | $15,161 | 1.8% | $19,429 | 2.4% |
| Professional Fees | $12,028 | 2.0% | $27,285 | 3.3% | $87,890 | 10.7% |
| Other Expenses | $52,581 | 8.9% | $69,478 | 8.4% | $69,478 | 8.4% |
| Total Expenses | $646,402 | 109.2% | $785,782 | 94.8% | $912,527 | 110.9% |
| OPERATING INCOME | ||||||
| Operating Income (ex. COVID Grants) | ($54,646) | – | $42,530 | – | ($89,543) | – |
| ADJUSTMENTS (ADD-BACKS) | ||||||
| Owner Compensation (1) | $10,000 | – | $70,000 | – | $38,264 | – |
| Non-Essential Dues & Subscriptions (5) | $8,595 | – | – | – | – | – |
| Philippines VA — Not Required for Operations (5) | $4,000 | – | – | – | – | – |
| Total Adjustments | $22,595 | – | $70,000 | – | $38,264 | – |
| DISCRETIONARY EARNINGS (SDE) | ($44,646) | – | $112,530 | 13.6% | ($51,279) | – |
| Adjusted SDE (with add-backs) (5) | (~$32,051) | – | See note | – | See note | – |
Notes
(1) Owner compensation add-back reflects the owner’s W2 income above the approximate $50,000 market-rate salary for a qualified director. The full owner salary is not added back — only the amount above the director replacement cost. Add-backs are seller-provided; full detail and supporting documentation available to qualified buyers during due diligence.
(2) 2023 GAAP net income was $211,746, which included $301,289 in non-recurring COVID-19 relief grants. Operating income excluding grants was ($89,543). 2022 net income of $229,091 similarly included $290,990 in COVID grants; operating income was ($61,898). These grants are excluded from the SDE calculation.
(3) 2023 Professional Fees of $87,890 included elevated legal and consulting expenses. Buyer to request itemization during due diligence.
(4) 3-year average SDE per seller valuation worksheet: $105,965. This figure reflects the seller’s normalization assumptions. Buyer to independently verify all add-backs and financial figures with their own advisors.
(5) Additional 2025 add-backs identified by seller (May 2026): Non-essential dues and subscriptions (~$8,595; includes HighLevel, Adobe, OpenAI, Grammarly, and similar tools not required under new ownership) and Philippines-based virtual assistant Trish Ponayo (~$4,000/year; seller confirms this role is not required for ongoing operations). These add-backs are 2025-specific; 2024 and 2023 figures are unaffected. Full supporting documentation available to qualified buyers during due diligence. Note: This business remains a turnaround / owner-operator opportunity — even with these add-backs, 2025 SDE is still negative. Buyers should underwrite accordingly.
Deal Structure: Business-only sale in a leased facility.
Assets Included: Operating furniture, fixtures, equipment, and business assets, subject to purchase agreement.
Assets Excluded: Cash, accounts receivable, deposits, personal items, and liabilities unless expressly included in a final agreement.
Owner Training & Transition Support: Owner will train the buyer for up to 30 days at no cost. Seller is prepared to negotiate additional transition support as needed. Additional period and compensation are negotiable.
Employees / Family Members: No owner family members are employed at the center.
Licensing Timeline: Buyer licensing and change-of-ownership timing will follow Texas HHS Child Care Regulation requirements.
Texas HHS Licensing Guidance PDF
Buyer Process
Confidential review follows a structured sequence for qualified buyers.
Phase 1
Inquiry & Qualification
Initial inquiry → Buyer questionnaire → Non-disclosure agreement
Phase 2
Confidential Information
Receive confidential listing information including full financial overview for evaluation
Phase 3
Showings & Offer
Schedule showing → Submit offer
Phase 4
Contract & Due Diligence
Offer accepted & contract executed → Due diligence. Detailed source documents including financials are provided during due diligence after contract execution.
Phase 5
Financing & Licensing
Finalize financing → Complete licensing / change-of-ownership requirements with Texas HHS
Phase 6
Closing
Closing, transition & proration → Funding & transfer of operations
Map shown for location reference only. Source: OpenStreetMap contributors.
Located at 7212 Oak Meadow Drive in Austin, Texas, Happy Bunnies serves a West Austin trade area with strong household income levels and a sizable base of families in the surrounding rings. ESRI demographic materials in the listing file provide current neighborhood context for qualified buyers.
Market Demographics
Source: ESRI Business Analyst. Data reflects current-year estimates for rings centered on the subject property address.
The Austin trade area around Happy Bunnies supports ongoing family demand for childcare, and the business has already built a recognized local presence. ESRI demographic support materials are available in the listing file, and the final market narrative will be refined as the packet is completed.
Preschool Exchange • Crest Real Estate Advisors
Preschool Exchange is one of the only business brokerages in Texas 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.
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