The process of Selling Child/Day Care Centers:
There is a great demand for high quality Child Cares and the numbers prove it. According to U.S. Bureau of Labor Statistics, Child Care businesses will have some of the fastest employment growth of all industries through 2020.
For those considering selling day care business, this is our process to sell a childcare center.Our initial meeting is an opportunity for us to get to know each other and see if we can work together. We understand that selling your business is a major decision and that confidentiality is critical. As a result, the first thing that we do in our initial meeting is provide you with a signed Broker’s Confidentiality Agreement. We want to learn about your business and why you are interested in selling, and you need to learn about us. During the entire process, we will represent you in each step along the way. With your help, we collect, and analyze all the pertinent information about your childcare center. It is critical that you understand that selling your business requires a lot of input from you. We need to know and understand your business, and we depend on you to provide the information. We will need at least 3 years of financial information including your P&L’s or Income Statements, Balance Sheets, and Corporate Tax returns. Some of the other things that are needed include information your licensed capacity and enrolment, competitors, employees, the assets included in the sale, your lease, and the reason you are selling your business. Based on the information that you provide, we arrive at a market value for your business. It will be the basis and justification for the business purchase price for both potential buyers and lender. We prepare a sophisticated and comprehensive Confidential Business Review to enhance the presentation of your business to potential buyers. This document will be the compilation of all the information that we have collected about your company, and will be the starting point for working with potential qualified buyers.
It will include an Owner’s Justification for Purchase Price where we support the validity of the asking .We create a Business Profile for your business as the basis of promoting your company while we maintain your confidentiality. All marketing and promotion activities are conducted in a manner that protects your company’s identity but generates interest in your opportunity. We review your company with the interested qualified buyer and answer all relevant questions. After determining a potential good fit, we discuss the interested buyer with you and arrange for the potential buyer to meet with you and have a tour of your business and discuss your opportunity. This is your chance to present your business and discuss its potential with a qualified buyer. If all goes well and you are comfortable with the buyer and the buyer is interested in your business we encourage the buyer to submit an Offer To Purchase for your review. Once the negotiated formal offer is accepted the buyer is given a scheduled “due-diligence” time to further examine your company with access to all business and financial information. This is the buyers’ opportunity to confirm that all information regarding your business is accurate. To protect both the seller and the buyer, closing the transaction requires careful preparation of all necessary documents. We co-ordinate to bring together all the professionals necessary to close the sale.
