If you own a childcare centre, then selling it can certainly come across as a challenging undertaking. The mere thought of the level of preparation that will go into it can scare anyone. And the thought can become even more troublesome when you realise that it can also strain your resources and time. Communicating with investors, compliance, and maintaining a good bottom line are all necessary stages of this process. While it’s possible for you to sell your business on your own, you can attain invaluable assistance from child care brokers as well. Their help proves useful for ensuring accurate documentation, marketing your daycare, and negotiating the sales price.
Here are some critical considerations before you let go of your childcare centre:
Determine a Realistic Price
People generally put a high value on their centre and are very emotional about it. But buyers are never attracted to inflated rates. So, what you can do is to put yourself in place of your potential buyers and, with a pragmatic outlook, find out a realistic price range. The good idea is to sell your centre for two to three times its annual profit. For example, suppose your business makes a revenue of 2 million every year. In that case, it can be sold for anywhere between four to six million, but not for 7 to 8 million.
If you’re always driven by your emotions, consider taking the advice of experienced childcare brokers.
Get Rid of Financial Irregularities
Potential buyers will certainly want to find out how your financials look. They would like to know about your earnings and expenses. Long day care services make up the bulk of child care services in Australia. So if you are the owner of one of them, you need to possess detailed records and be clear on the money you are making. Otherwise, you will only scare away your buyer. You can reach out to an accountant who can prepare the reports that you’ll need. The more comprehensive information you provide, the more interested your buyers will become.
Clarify Full-Time Enrolment
Your prospective buyers will also want to know about your customer base. You can convey this information easily by clarifying full-time enrolment. This number considers both part-time and full-time students in a weighted way, so your buyers can achieve a general idea. Buyers are usually interested in full-time enrolment, so childcare centre owners need to think about it.
Enhance Your Facility
Want to impress your buyers instantly? Take steps to upgrade your facility. Some things that you can do are scheduling maintenance, painting suitable areas, and making both interiors and exteriors look tidy. In addition to that, upgrading the facility is especially important for those who also own the building.
Make the Process Easy for Yourself
It might be difficult for you to let go of your childcare business when it was integral to you for so long. So, to make the process of selling smooth and hassle-free, you can make someone else in charge of the routine operations. If you have a director in your centre, then it’s a good idea to make them in charge of the selling process. You can also hire a director if you don’t have one.
This big undertaking can be made a lot simpler when you pay attention to the points mentioned above. The childcare services market is growing at an unprecedented rate, so the time is ripe for you to retire if you wish to.