Brazoria, Texas
Established community childcare center with a strong local reputation, owned real estate, consistent enrollment, and meaningful upside available to a focused buyer.
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.
The Discovery Barn has served the Brazoria, Texas community as a licensed childcare center since the property was originally developed in 1997, with significant facility expansions in 2003 and 2018. The current owners acquired the property in 2017 and have operated Discovery Barn continuously since. Under their ownership, meaningful investments have been made in the facility including playground equipment upgrades, new HVAC systems, and classroom renovations. The school has built a strong reputation for child-centered care and community engagement, maintaining consistent demand. The owner is now preparing for transition and is seeking a qualified buyer to carry the business and its legacy forward.
Operation Number: 1661049
License Type: Licensed Center – Full Permit
Permit Issued: October 6, 2017
Ages Served: Infant, Toddler, Pre-Kindergarten, School Age
Subsidies Accepted: Yes – Child Care Scholarships (State Level)
Latest Inspection: July 15, 2025 – Monitoring Inspection. 578 standards evaluated, 578 compliant. Zero deficiencies. Zero self-reported incidents.
TRS (Texas Rising Star): Discovery Barn holds a 3 Star Texas Rising Star rating, qualifying the center for enhanced Workforce Solutions subsidy reimbursement rates and a broader base of subsidized families.
Source: Texas HHS Child Care Search, Operation #1661049. Buyer to verify all licensing information independently prior to closing.
Program Type & Curriculum
Traditional program with Circle Time and Emergent curriculum approach.
Tuition
See current tuition rates below. Last increase: September 2024. Next increase planned 2027–2028.
Infants: $210/wk full-time (includes diapers & wipes) • PT from $130/wk
Toddlers: $190/wk full-time (includes diapers & wipes) • PT from $100/wk
Preschool: $170/wk full-time • PT from $100/wk
School Age: $170/wk full-time • PT AM/PM options available
Registration fee: $100 • Fall registration: $50 • Sibling/veteran/first responder discounts available
Meals Served / Food Program
Breakfast, lunch, and afternoon snack cooked on site by a dedicated cook. CACFP participating through Beyond Meals sponsor.
Child Care Software Used
1Core Class and Family
Transportation
Transportation is not offered at this time. This represents a potential expansion opportunity for a buyer.
After-School
Yes — Barrow Elementary and Wild Peach Elementary.
Subsidy Participation
State-level child care subsidies accepted. Part-time care available 2 or 3 days per week, and 8 AM–3 PM schedules. Drop-in care available.
Enrollment Detail
Discovery Barn is licensed for 131 children and enrolled 89 children as of April 8, 2026 (68% of licensed capacity). With TRS 3 Star certification, the center is eligible for enhanced Workforce Solutions subsidy reimbursement rates for subsidized families.
Enrollment by Classroom / Age Group
| Classroom / Age Group | Current Enrollment |
|---|---|
| Infants (Crib Room) | 10 |
| Romper Rooms A & B (12–24 mo) | 9 |
| 18-Month / 2 Year Rooms | 20 |
| Preschool (3-4 yr: Blue & Green Rooms) | 29 |
| School Age (After School Room) | 21 |
| Total Enrolled | 89 |
Tuition Type Breakdown
| Type | Children | % of Enrollment |
|---|---|---|
| Private Pay | 78 | 88% |
| Subsidy (State Child Care Assistance) | 11 | 12% |
| Total | 89 | 100% |
Private-pay count is derived from total enrolled children (89) minus children shown on the Workforce Solutions subsidy enrollment report (11) as of April 8, 2026.
Per-classroom licensed capacity is being held pending seller clarification or source documentation. Buyer to verify all information.
Enrollment figures as of April 8, 2026. Enrollment figures as of April 8, 2026. Buyer to verify all information with seller.
Staffing & Owner Role
Full-Time Staff
16 full-time employees
Part-Time Staff
2 part-time employees
Employee Manual
Yes
Payroll System
Paychex
Pay Frequency
Bi-weekly
Wage Ranges
Director: $17.75/hr • 4-year teacher/closer: $16.50/hr • Others: $12.00/hr
Owner Role
Current owner visits the center daily for approximately half a day. Responsibilities include financial management, bank account management, payroll review, HR compliance, oversight of marketing strategies, and facilities maintenance. A new buyer will be required to assume the roles of the current owner or be prepared to assign these responsibilities to an existing or new employee.
Employee Roles
| Role | Wage Range | Notes |
|---|---|---|
| Director | $17.75/hr | In place; not a family member of the owner |
| 4-Year Teacher / Closer | $16.50/hr | Experienced classroom staff |
| All Other Staff | $12.00/hr | Includes classroom assistants and cook |
Wage ranges provided by seller. Detailed role breakdown by count available upon request. Buyer to verify all information.
Employee Benefits
| Benefit | Notes |
|---|---|
| Health Insurance | Aflac offered |
| Workers Comp Insurance | Provided |
| Retirement Plan | Offered |
| PTO | Offered |
| Holiday Pay | Offered |
| Cash Bonuses | Offered |
Seller-provided benefits list. Full-time versus part-time eligibility is not yet confirmed and should be verified with seller.
Current enrollment sits at 68% of licensed capacity with consistent community demand and minimal active marketing. The center has meaningful upside available to a focused owner — from enrollment growth to expanded hours and stronger digital presence, building on the center’s existing TRS 3 Star certification. Specific opportunities and industry trends 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 (discoverydays.biz) | – | Email campaigns |
| ✓ | Facebook presence | – | CRM / automated follow-up |
| – | Community partnerships / referral relationships | – | Community events / local outreach |
Discovery Barn Current enrollment is at 68% of licensed capacity. Specific growth opportunities are detailed below.
Industry-Wide Growth Trends
Workforce Solutions Subsidy Reimbursement Opportunity
Discovery Barn is located in the Gulf Coast 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 star level above baseline 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) | $47.00 | $49.36 | $50.36 | $51.40 |
| Toddler (18–23 mo) | $45.20 | $47.47 | $48.43 | $49.41 |
| Preschool (3 yr) | $43.80 | $46.00 | $46.93 | $47.88 |
| School Age (6–13 yr) | $41.40 | $43.48 | $44.36 | $45.26 |
Rates are daily, full-time, Licensed Child Care Center (LCCC). Source: TWC Board Contract Year 2026 Child Care Provider Payment Rates (Gulf Coast-28). 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. For a center serving primarily low-income families, the majority of meals may qualify at the Free rate — creating a meaningful revenue stream with no additional enrollment required.
| 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.
Property Overview
The facility is a purpose-built childcare building of approximately 5,700 SF situated on 1.82 acres (79,227 SF) of land across two parcels. The property is owned and is included in the sale.
Year Built
1997 (original) + 2003 + 2018 additions
Zoning
Commercial (CH, as of 12/11/2019)
Parking
On-site paved parking
Property Tax Snapshot
Approximate annual property tax: $20,687 (2025). Property ID: 224097. Taxing entities include City of Brazoria, Columbia-Brazoria ISD, Brazoria County, and district levies. Buyer to verify current assessed value and tax obligations with the county appraisal district.
Interior Features
8 classrooms • 8 restrooms (no urinals) • 12 handwashing sinks • 1 mop sink • Kitchen • Director office • Washer/Dryer
Outdoor / Playground
4 playgrounds with mounted and movable structures, pebble and rubber mulch surfacing, shade structures. Keypad-secured front entry. Camera system installed. – size, surface, equipment, shade, fencing, age zones]
Vehicles Included
No vehicles included in sale. Transportation is not currently offered.
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 |
|---|---|---|
| Classroom Renovations | Past 3 years | Small areas renovated |
| HVAC | Recent | Mostly new units replaced |
| Playground Equipment | Past 3 years | New equipment added (noted as major one-time expense) |
| Flooring | Recent | Some new flooring installed |
| Concrete Paving | 1997 | 3,280 SF on-site paving |
| Canopy / Shade Structures | 2008, 2011 | Two canopy roofs + sunshade added |
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 | No known issues | No fire sprinkler system; no monitored fire alarm system |
| HVAC | Mostly new | Recent replacement (partial – year not specified) |
| Plumbing | Municipal | Municipal water and sewer |
| Electrical | No known issues | No known issues |
| Water Heater(s) | Not specified | Not specified |
| Fire Suppression / Sprinklers | Not present | No sprinkler system |
| Security System | Working | Camera system and keypad entry installed; not remotely monitored |
Condition information supplied by seller. Buyer to verify through independent inspection.
Floor Plans
View Main Building Floor Plan (PDF) →
View 2nd Building Floor Plan (PDF) →
Revenue has grown consistently over three years – from $581,804 in 2023 to $630,782 in 2024 to $690,725 in 2025, a compound annual growth rate of approximately 9%. Payroll runs at approximately 57-59% of revenue, consistent with industry norms. Operating expenses include a building lease paid to the owner’s real estate entity — this is a full add-back for RE-included deals, as a buyer will own the building and will not pay rent to a prior owner. 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 and/or tax returns. 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 | $521,134 | 89.6% | $502,125 | 79.6% | $561,220 | 81.2% |
| Food Program Income | $129,505 | 18.8% | $129,505 | 20.5% | $63,230 | 10.9% |
| Other Income | N/A | – | ($848) | – | ($2,560) | – |
| Total Operating Income | $690,725 | 100% | $630,782 | 100% | $581,804 | 100% |
| OPERATING EXPENSES | ||||||
| Salaries & Wages | $342,615 | 58.9% | $372,519 | 59.1% | $394,486 | 57.1% |
| Food Cost | $48,791 | 7.1% | $47,152 | 7.5% | $41,684 | 7.2% |
| Insurance | $14,340 | 2.1% | $10,061 | 1.6% | $18,541 | 3.2% |
| Repairs & Maintenance | $16,050 | 2.3% | $21,564 | 3.4% | $11,856 | 2.0% |
| Utilities | $16,593 | 2.4% | $14,823 | 2.4% | $14,493 | 2.5% |
| Advertising & Promotion | $1,905 | 0.3% | $2,763 | 0.4% | $3,385 | 0.6% |
| Professional Fees | $8,528 | 1.2% | $6,122 | 1.0% | $5,889 | 1.0% |
| Depreciation & Amortization | $2,160 | 0.3% | $7,697 | 1.2% | $27,755 | 4.8% |
| Other Expenses | $167,731 | 24.3% | $151,552 | 24.0% | $119,899 | 20.6% |
| Total Expenses | $670,584 | 97.1% | $634,253 | 100.6% | $643,117 | 110.5% |
| NET INCOME | ||||||
| Net Income Before Tax | ($61,313) | – | ($3,471) | – | $20,141 | – |
| ADJUSTMENTS (ADD-BACKS) | ||||||
| Owner Compensation (1) | $22,800 | – | $37,100 | – | $23,800 | – |
| Depreciation & Amortization (2) | – | – | $20,928 | – | $13,000 | – |
| Personal Expenses (3) | $7,959 | – | $8,181 | – | $8,008 | – |
| [Other Add-back] (4) | $26,504 | – | $39,699 | – | $83,780 | – |
| Total Adjustments | $58,263 | – | $105,908 | – | $127,588 | – |
| DISCRETIONARY EARNINGS (SDE) | $78,404 | 11.3% | $102,437 | 16.2% | $66,275 | 11.4% |
| Building Lease Add-Back (5) | $94,911 | – | $88,156 | – | $88,092 | – |
| TOTAL CASH FLOW (incl. building lease add-back) | $173,315 | 25.1% | $190,593 | 30.2% | $154,367 | 26.5% |
Notes
(1) Owner salary and compensation paid through the business. Not required to be continued by a buyer in the same form.
(2) Depreciation and amortization – non-cash expense, added back per seller-provided worksheet.
(3) Personal expenses including owner perks, home office, and personal vehicle use run through the business.
(4) Includes family salaries, charitable contributions, one-time and non-recurring expenses as itemized in the seller-provided add-backs worksheet. Available in full to qualified buyers during due diligence.
(5) Building lease reflects rent paid by the business to the owner’s real estate entity for the property included in the sale. A buyer acquiring both the business and real estate will no longer pay this rent — they will instead service their own acquisition debt. This line is a full add-back for RE-included deals. 3-year average SDE (business only, before building lease): $97,253. 3-year average total cash flow (with building lease add-back): $172,758. 2-year average total cash flow (2024-2025): $181,954.
At an illustrative conventional structure with 25% down on a $1,150,000 asking price, estimated annual debt service is approximately $76,486, compared to 3-year average total cash flow of approximately $172,758. Three financing scenarios are illustrated below — conventional 25% down, conventional 20% down, and SBA 7(a) — 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 | $1,150,000 |
| Building Size | 5,700 SF (2 buildings + shed) |
| Lot / Property Size | 1.82 acres (79,227 SF) |
| Year Built | 1997 (additions 2003, 2018) |
Financing Scenarios — Illustrative
| Conventional 25% Down |
Conventional 20% Down |
SBA 7(a) 10% Down |
|
|---|---|---|---|
| Purchase Price | $1,150,000 | $1,150,000 | $1,150,000 |
| Down Payment | $287,500 (25%) | $230,000 (20%) | $115,000 (10%) |
| Loan Amount | $862,500 | $920,000 | $1,035,000 |
| Illustrative Rate | ~7.5% | ~7.5% | ~10.5% |
| Amortization | 25 Years | 25 Years | 25 Years |
| Illustrative Monthly Payment | ~$6,374 | ~$6,799 | ~$9,772 |
| Annual Debt Service | ~$76,486 | ~$81,585 | ~$117,267 |
Illustrative Cash Flow After Debt Service
| Conv. 25% | Conv. 20% | SBA 10% | |
|---|---|---|---|
| 3-Year Average Total Cash Flow | $172,758 | $172,758 | $172,758 |
| Less: Annual Debt Service | ($76,486) | ($81,585) | ($117,267) |
| Illustrative Cash Flow After Debt Service | $96,272 | $91,173 | $55,491 |
Cash flow figures sourced from seller-provided financials. Debt service is illustrative only. Rates and terms are estimated and will vary by buyer, lender, and market conditions at time of transaction. This is not presented as a guaranteed return. Buyer to verify all figures with their own lender and financial advisor.
This acquisition may be eligible for SBA 7(a) financing, which offers lower down payment requirements for qualified buyers. SBA financing eligibility depends on the buyer's financial profile, the structure of the deal, and lender participation.
| Amount | Program | Term | Est. Rate | Est. Pmt./Mo. | Secured By |
|---|---|---|---|---|---|
| $1,035,000 | SBA 7(a) | 300 months (25 yrs) | ~10.5% | ~$9,772/mo | Real Estate & Business Assets, Personal Guaranty |
For illustrative purposes only. Contact a certified SBA lender for qualification and current program terms.
Deal Structure: The deal structure will be an asset sale.
Assets Included: All assets of the business except exclusions. Sale includes furniture, fixtures, and equipment.
Assets Excluded: Cash, accounts receivable, deposits, personal items, and liabilities not being transferred.
Assets Leased: None
Employees Not Continuing After Closing
No family members of the owner are employed at the center. There is no known reason to believe any current employees would leave as a result of the sale.
Owner Training & Transition Support
Owner will train the buyer for up to 90 days at no cost. Seller is prepared to negotiate additional transition support as needed. Additional period and compensation are negotiable.
Licensing Timeline: Buyer licensing and change-of-ownership timing will follow Texas HHS Child Care Regulation requirements and should be planned early in the transition process.
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 tax returns are provided during due diligence after contract execution.
Phase 5
Financing & Licensing
Finalize financing → Complete licensing / Certificate of Occupancy requirements
Phase 6
Closing
Closing, transition & proration → Funding & transfer of operations
Map shown for location reference only. Source: OpenStreetMap contributors.
Located at 202 Gaines St in Brazoria, Texas, the center sits in a residential and commercial corridor with convenient access to the local community. Brazoria County is a growing market with steady population growth projected at 0.9%/year through 2030. The property sits on 1.82 acres and is highly visible within the local community it serves.
Market Demographics
Source: ESRI Business Analyst. Data reflects current-year estimates for rings centered on the subject property address.
The Brazoria market is a small, stable residential community in Brazoria County with consistent demand for quality childcare. Within 1 mile, there are 128 children under age 5 and an additional 138 children ages 5-9 – a core feeder population for the center’s programming. The 3-mile trade area expands to 284 under-5 children and 306 ages 5-9. Median household income of $70,920 within 3 miles reflects a working-family market that actively utilizes childcare services. Population is projected to grow at approximately 0.9% annually through 2030, outpacing the national average of 0.4%. The center currently serves two feeder schools (Barrow Elementary and Wild Peach Elementary) through its after-school program, deepening community roots. Consistent enrollment and community engagement indicate stable local demand for quality childcare.
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.
Resources for Preschool Owners
Business of Preschool Podcast
Practical strategy for preschool owners on valuation, exit planning, operations, and profitability.
YouTube Channel
Free video library covering childcare business sales, tour conversion, enrollment strategy, and exit readiness.
Resource Library
Guides, checklists, and tools for owners preparing to sell or strengthen their business.
If this opportunity fits your criteria, choose the next action below.
Not the right fit?
No problem at all. Let us know and we'll remove you from updates on this listing. Other opportunities may be a better match — we'll keep you in mind.
This isn't the right fit for me