How To Sell Your Daycare Center
Working with children can be extremely rewarding. And while that joy can be an incredible high, it’s coupled with the daily stress of maintaining a facility, managing a quality staff, working with Local Child Care and Development Planning Councils (LPCs), and complying with local ordinances — as well as the laws and regulations specific to childcare centers in California and federal and state employment and tax laws. Let me help you with some advice on how to sell your daycare center
In some ways, the process of how to sell your daycare center is much like selling another small business, such as an auto repair shop in Folsom or a Davis area bakery. However, there are specific factors and data that a business broker like Andrew Rogerson can provide. These include things like comparable daycare valuations, the business climate in your community, and demographics. Making sure that it’s the right time to sell and that your daycare center is ready for the sale are two of the critical components that you must understand before moving forward with your efforts.
Some daycare center owners will try sell their businesses by themselves without the help of a professional. While this may save them some money short-term, they will miss out on the invaluable advice and assistance of a business broker who will drive up the purchase price. Andrew will help you prepare to sell your daycare center and ensure that the legal documentation is completed. In addition, he will oversee the marketing of your daycare to potential buyers and negotiate the final sales price.
Getting Ready to Sell the Daycare
One of the first tasks to accomplish is to obtain an independent business appraisal for the current value of your daycare. Andrew will recommend a knowledgeable commercial appraiser who will document the daycare’s value. This will help you fashion a sound asking price, and will help you defend and receive the best price for your business. The appraisal may call for improvements or repairs that can increase the value of your day care business. As you consider this, organize your financial records, and prepare your daycare business for sale, your business broker will use his experience selling day care businesses in Sacramento to locate qualified buyers.
Your business broker will review the daycare’s appraisal with you and decide on a selling price. In addition, he will prepare a sales agreement that details the terms and conditions of the sale.
Confidentiality Agreement and Pre-Qualification
Your business broker will require that all potential buyers sign a confidentiality agreement to protect the details when you’re determined to sell your daycare center and to ensure a successful sale. Andrew will also help you to prequalify legitimate buyers for a much more efficient sales transaction. Your due diligence on a prospective buyer’s financial background lets you understand whether he or she
has the financial means to make the purchase. That’s a critical prerequisite prior to disclosing the financial details of your daycare business, and it helps move the transaction forward seamlessly.
Selling the Buyer
You and your business broker will want to meet in-person, if possible, with your most serious and attractive buyers. They too will want to meet you and to gain your perspective and knowledge about the operation of your day care business. This meeting can be a strategic opportunity for you to provide the buyer with first-hand information that will convince him or her that buying your daycare is a wise business decision. You can tout an impressive and veteran staff, up-to-date records and licensing, and a well-kept and safe premise… all signs of a well-run and profitable business.
There are many steps to successfully sell a Sacramento daycare business, and completing the due diligence and prepping the facility for sale are just two of those steps. Click this link if you would like a one page summary of the Many Steps to Sell a Business.
Contact Rogerson Business Services to speak with Andrew today about your plans for your daycare business. Call (916) 570-2674 or email email@example.com.