Little Cougars Preschool
Buna, Texas
Why This Opportunity Stands Out
A rural Deep East Texas childcare center with strong community presence, owned real estate, meaningful below-market tuition with upside potential, and immediate enrollment growth opportunity.
- Below-market tuition with clear room to increase — immediate revenue upside for a new operator
- 2 acres of owned real estate included — freestanding building built 2012, business started with no external financing
- Clean compliance record and active enrollment growth underway
Child Care Sales Specialist
Preschool Exchange | Crest Real Estate Advisors, LLC
Phone: +1 (832) 924-6022
Email: chelsea@preschoolexchange.com
Website: www.preschoolexchange.com
Notices
Texas law requires all license holders to provide the Information About Brokerage Services form to prospective clients.
View Brokerage Notices
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.
Business Overview
Strengths & Uniqueness
- Established community center serving Buna, Evadale, and Kirbyville ISDs with a strong local reputation
- Private-pay-only operation — no subsidy dependency, simplified administration
- Below-market tuition with acknowledged upside — seller confirms rates have not been raised and are below local market
- 2 acres of owned real estate — freestanding building constructed in 2012, business started with no external financing
- Active community partnerships: library storytime, local sports and rodeo sponsorships
- Clean compliance record — 2 minor deficiencies out of 4,905 standards evaluated over 5 years
History of the Business
Little Cougars Preschool has served the Buna, Texas community as a licensed childcare center since opening in 2012. The center was established without any business financing and has been built entirely through operations, with the owners reinvesting into the facility and programs over the past several years. Meaningful improvements have been made including playground upgrades, expanded classroom capacity, and ongoing facility maintenance. The school has built a strong reputation in the community for smaller class sizes, family responsiveness, and consistent care. Active in local events including library programming, sports, and rodeo sponsorships, Little Cougars is a recognized presence in Buna and surrounding communities. The owner is now transitioning out of the business for personal reasons and is seeking a qualified buyer to carry the business and its legacy forward.
Licensing & Compliance
View Licensing Details
Operation Number: 1745856
License Type: Licensed Center – Full Permit
Permit Issued: November 18, 2022
Ages Served: Infant, Toddler, Pre-Kindergarten, School Age
General Schedules: Full day, After School Care
Subsidies Accepted: No
Latest Inspection: February 2, 2026 — Monitoring Inspection. No deficiencies noted.
5-Year Compliance Summary: 2 deficiencies found out of 4,905 standards evaluated over the five-year compliance period. Most recent inspection (February 2026) noted no deficiency risk level. 11 inspections conducted, 0 self-reported incidents.
TRS (Texas Rising Star): The center has not pursued Texas Rising Star certification. This represents a meaningful opportunity for a new owner — TRS participation can expand subsidy eligibility, strengthen the school’s competitive position, and signal program quality to families in the market.
Source: Texas HHS Child Care Search, Operation #1745856. Buyer to verify all licensing information independently prior to closing.
Operations
View Operations Details
Program Type & Curriculum
Pull from Pocket of Preschool and Experience Curriculum, with additional supplemental resources. Brightwheel used for attendance, communication, and billing.
Tuition
Private-pay only — no subsidies accepted.
6 Weeks – 18 Months: $160/wk
18+ Months – 5 Years: $145/wk
School-Age: $80/wk
Registration fee: $50 one-time.
Seller indicates current rates are below market for the region. A new operator has the opportunity to evaluate and align pricing with local market rates.
Meals Served / Food Program
Breakfast, lunch, and AM & PM snacks are provided daily and managed in-house. The center is not currently enrolled in the USDA Food Program (CACFP). Enrolling in CACFP is an opportunity for a new owner — participation provides reimbursements for qualifying meals and can reduce food costs while strengthening the program’s value proposition to families.
After-School
Yes — Buna ISD and Kirbyville ISD. The school bus drops children off directly at the center, eliminating transportation requirements for families.
Subsidy Participation
The center does not currently accept subsidies and operates as a fully private-pay program. This creates an opportunity: pursuing TRS certification and subsidy participation could expand the eligible family pool significantly.
Staffing
5 full-time and 2 part-time staff members. Pay rates: Teachers $9.00–$11.50/hr, Cook $11.00/hr. The center does not currently offer health insurance, retirement, or paid time off.
Owner & Director Role
The current director is the owner and will provide up to 90 days of transition support. One current staff member has the experience and leadership skills needed to step into the director role.
Enrollment Detail
Little Cougars is licensed for 87 children and currently enrolling 35 children (40% of licensed capacity). Enrollment was recently reopened following a temporary pause; new families are actively enrolling.
| Age Group | Current Enrollment |
|---|---|
| Infants (3–12 months) | 2 |
| 1-Year-Olds | 4 |
| 2-Year-Olds | 9 |
| PreK (3–4 years) | 8 |
| School-Age | 12 |
| Total | 35 |
Licensed capacity is 87. Current enrollment reflects early-stage recovery following a temporary enrollment pause. Growth toward 60%+ occupancy represents a primary value-creation opportunity.
Marketing & Growth Opportunities
Little Cougars sits in a rural Deep East Texas market with meaningful upside available to a focused buyer. At 40% occupancy of 87 licensed capacity, below-market tuition, and no TRS or USDA enrollment, the center offers multiple independent levers a new owner can pull to grow revenue and strengthen market position.
View Marketing & Growth Detail
Current Position
- Below-Market Tuition: Seller confirms rates are below comparable centers in the region. A new operator can evaluate and adjust pricing to market rates immediately.
- Enrollment Momentum: The center recently reopened enrollment after a temporary pause. New families are actively enrolling and occupancy is climbing.
- Capacity Available: At 40% occupancy of 87 licensed, there is substantial room to grow — reaching 60–70% occupancy would materially improve cash flow without additional infrastructure.
- Community Anchor: Proximity to Buna, Evadale, and Kirbyville ISDs creates a natural multi-district draw. School bus drop-off directly at the center reduces barriers for families.
- Private Pay Base: 100% private-pay with no subsidy dependency means simpler administration and full rate control from day one.
Growth Opportunities
- TRS certification — opens subsidy eligibility and broadens the addressable family market
- CACFP enrollment — provides meal reimbursements and reduces food costs
- Drop-in care program to capture occasional-use families
- Extended after-school club programming
- Summer camp and holiday care programs
- Tuition rate increases aligned with local market
- 2-acre property provides room for future facility expansion if demand warrants
Workforce Solutions Subsidy Reimbursement Opportunity
Lil Cougars is located in the Deep East Texas 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) | $34.80 | $36.55 | $37.29 | $38.04 |
| Toddler (18–23 mo) | $30.80 | $32.35 | $33.01 | $33.68 |
| Preschool (3 yr) | $29.20 | $30.67 | $31.29 | $31.92 |
| School Age (6–13 yr) | $27.80 | $29.20 | $29.79 | $30.39 |
Rates are daily, full-time, Licensed Child Care Center (LCCC). Source: TWC Board Contract Year 2026 Child Care Provider Payment Rates (Deep East Texas-17). 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 as possibilities based on seller-provided information and market observation. They are not projections or guarantees of future performance. Buyer should conduct independent market research prior to closing.
Photos
Facility & Assets
View Facility Details
Property Overview
| Property Type | Freestanding childcare facility |
| Ownership | Owner-occupied — included in sale |
| Building Size | 3,600 SF (main) + 240 SF storage |
| Lot Size | 2.00 acres (87,120 SF) |
| Year Built | 2012 |
| County Appraised Value | $162,876 (2025 Jasper CAD) |
| Est. Annual Property Taxes | ~$2,798/yr (2024 actual) |
Interior Features
- 6 classrooms serving infants through school-age
- 5 restrooms — ADA-accessible hallways throughout
- In-building stackable washer and dryer
- Cintas sanitation and cleaning service in place
- Fire monitoring system active
- Kitchen for on-site meal preparation
Floor Plan
Outdoor & Grounds
- 2 acres of outdoor grounds for play and future expansion
- Playground with new turf installed
- Parking lot resurfaced
- Storage building at rear of property (water toys, seasonal décor, extra furniture)
Recent Capital Improvements
| Improvement | Year |
|---|---|
| Playground turf installation | 2024 |
| Parking lot resurfacing | 2024 |
| Infant room expansion | 2023 |
| Flooring upgrades | 2023 |
Major Systems
| System | Condition |
|---|---|
| Fire Monitoring | Active — monitored service |
| Sanitation | Cintas service in place |
| Other Systems | No known issues reported by seller |
Property Condition Statement available to qualified buyers following acceptance of a Letter of Intent.
Financial
Little Cougars operates with a lean cost structure and a private-pay-only tuition model. The 2024 normalized income statement reflects seller-provided add-backs for one-time grant expenditures, non-recurring program improvements, and a family member’s wages. The owner drew no salary from the business; profits were reinvested into facility improvements and program expansion over the past three years.
View Normalized Income Statement
| Line Item | 2024 | % Rev |
|---|---|---|
| Gross Revenue | $331,563 | 100% |
| Payroll & Taxes | $178,087 | 53.7% |
| Supplies & Materials | $55,972 | 16.9% |
| Repairs & Maintenance | $35,446 | 10.7% |
| Utilities & Services | $13,220 | 4.0% |
| Insurance | $5,704 | 1.7% |
| Interest Paid | $10,958 | 3.3% |
| Office & Merchant Fees | $6,674 | 2.0% |
| Other Operating Expenses | $16,605 | 5.0% |
| Total Operating Expenses | $322,666 | 97.3% |
| Net Operating Income | $8,897 | 2.7% |
| Seller-Provided Add-Backs | ||
| One-time grant expenses (1) | $30,654 | – |
| One-time program improvements (2) | $14,229 | – |
| Family member wages (3) | $14,450 | – |
| Net income (before add-backs) | $656 | – |
| Seller Discretionary Earnings (SDE) | $60,000 | – |
| Building Mortgage / Debt Service Add-Back (4) | $2,100 | – |
| Total Cash Flow (incl. RE mortgage) | $62,100 | – |
Notes
(1) One-time grant-funded facility improvements: infant room expansion and flooring upgrades. Funded by a $56,061 grant received in 2023; expenses recorded in 2024.
(2) Non-recurring program improvements including furnishing of additional classrooms.
(3) Family member wages as a staff member — not owner compensation. Buyer may retain or replace this employee at their discretion.
(4) Building mortgage/debt service reflects the seller’s existing debt obligation on the owned real estate, which is included in the sale. A buyer acquiring the property will replace this with their own financing obligation. 2-year average SDE (2023–2024): $56,750.
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.
Lending Snapshot
Three illustrative financing scenarios are shown below, ordered from lowest to highest annual debt service. Conventional financing with 25% down carries the lowest debt service cost; SBA 7(a) requires the least capital up front. Buyers should evaluate which structure best fits their financial profile. All figures are illustrative only.
View Lending Detail
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 | $485,000 |
| Building Size | 3,600 SF |
| Lot Size | 2.00 acres |
| Year Built | 2012 |
Financing Scenarios — Illustrative
| Conventional 25% Down |
Conventional 20% Down |
SBA 7(a) 10% Down |
|
|---|---|---|---|
| Purchase Price | $485,000 | $485,000 | $485,000 |
| Down Payment | $121,250 (25%) | $97,000 (20%) | $48,500 (10%) |
| Loan Amount | $363,750 | $388,000 | $436,500 |
| Illustrative Rate | ~7.5% | ~7.5% | ~10.5% |
| Amortization | 25 Years | 25 Years | 25 Years |
| Illustrative Monthly Payment | ~$2,689/mo | ~$2,868/mo | ~$4,122/mo |
| Annual Debt Service | ~$32,268 | ~$34,416 | ~$49,464 |
Illustrative Cash Flow After Debt Service
| Conv. 25% ~7.5%, 25yr | Conv. 20% ~7.5%, 25yr | SBA 10% ~10.5%, 25yr | |
|---|---|---|---|
| 2024 Cash Flow (SDE + building mortgage add-back) | $62,100 | $62,100 | $62,100 |
| Less: Annual Debt Service | ($32,268) | ($34,416) | ($49,464) |
| Illustrative Cash Flow After Debt Service | $29,832 | $27,684 | $12,636 |
Cash flow sourced from seller-provided 2024 financials including building mortgage add-back. Enrollment is actively growing and 2025 cash flow is expected to be materially higher. All rates are illustrative only. Buyer to verify all figures with their own lender and financial advisor.
View SBA Financing Notes
This acquisition may be eligible for SBA 7(a) financing, which offers longer amortization periods and 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 | Illustrative Rate | Illustrative Pmt./Mo. | Secured By |
|---|---|---|---|---|---|
| $436,500 | SBA 7(a) | 300 months (25 yrs) | ~10.5% | ~$4,122/mo | Real Estate & Business Assets, Personal Guaranty |
For illustrative purposes only. Contact a certified SBA lender for qualification and current program terms.
Transaction Structure
View Transaction Structure Details
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
One family member of the owner is currently employed at the center as a staff member. Their continued employment would be at the discretion of the new owner. There is no known reason to believe any other current staff members 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. One existing staff member has the experience and leadership skills needed to step into the director role.
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. Tax returns and source docs provided post-contract.
Phase 5
Financing & Licensing
Finalize financing → Complete licensing / Certificate of Occupancy requirements
Phase 6
Closing
Closing, transition & proration → Funding & transfer of operations
Location & Market
Map shown for location reference only. Source: OpenStreetMap contributors.
Located at 290 County Road 734 in Buna, Texas (Jasper County), the center serves a Deep East Texas community anchored by three school districts: Buna, Evadale, and Kirbyville ISDs. Within 3 miles, there are 168 children under age 5 and 188 children ages 5–9 — a solid feeder pool for the center’s infant-through-school-age programming. The center sits on 2 acres with school bus drop-off service directly on site, giving it a practical structural advantage over competitors that require separate family transportation.
Market Demographics
Source: ESRI Business Analyst. Data reflects 2025 current-year estimates for rings centered on 290 County Road 734, Buna TX 77612.
View Market Narrative & Full ESRI Detail
Buna is a small, stable community in Jasper County, Deep East Texas. The ESRI 3-mile trade area captures a population of 3,066 across 1,270 households, with 553 children age 14 and under — a meaningful feeder base for a center with 87 licensed slots operating at 35 enrolled today. The 5-mile ring expands to 5,696 total population. Median household income of $61,353 within 3 miles reflects a working-family market that actively depends on quality childcare. The 82% homeownership rate within 3 miles signals a stable, rooted community with consistent enrollment retention.
The center’s school bus drop-off arrangement creates a structural competitive advantage: families across Buna, Evadale, and Kirbyville ISDs can use Little Cougars without arranging separate transportation — expanding the effective draw area well beyond the immediate 1-mile ring. The current enrollment of 35 against a licensed capacity of 87 leaves significant upside: an operator pursuing TRS certification, subsidy participation, and market-rate tuition has a clear, documented path to substantially higher revenue from an already-licensed facility.
Active community ties through weekly library storytime, local sports and rodeo sponsorships, and an established Facebook presence give the center name recognition that a new entrant would take years to build. Limited licensed childcare competition in Jasper County’s rural corridor reinforces Little Cougars’ positioning as the established local provider.
Meet the Brokerage and Agent
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
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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