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Due diligence forms an essential part of buying any business as it provides a bridge between making an offer to acquire a business and completing the deal at an agreed price.

Most childcare business sales will be completed “subject to Due Diligence”.

The scope of the due diligence investigation will vary and to some degree depend on the information provided by the seller and Business Broker prior to any offer being made. It genuinely pays to get the right information from the right people for a smooth sale to proceed.

If you are looking to grow your business, it sometimes pays to look outside of the square. One of the most effective and immediate ways to up-size your business is to buy your competitor and is commonly done within the Childcare sector. The alternative is to grow your business slowly over time which is proving difficult for many to find suitable development sites.

With the challenging bank finance situation we are currently experiencing, an effective way to achieve a sale at the best possible price, is for the seller (vendor) to help finance the sale.  Vendor finance is not new, but is now being used more often to achieve a business sale.

Vendor finance is where the seller agrees to allow a buyer to pay part of the purchase price on completion of the contract and the balance payable afterwards, based on pre agreed terms and conditions.

What are the benefits to the Seller?

Widens the pool of buyers

When negotiating a business purchase, it is easy for the Buyer to think they have all the power in the negotiation, and that the Seller is so motivated to achieve a sale, the Buyer has all the control.

This is not always the case. To achieve a sale “it takes Two “ ; a willing buyer and a willing seller.

In a recent sale I have been involved with the buyer and their solicitor were placing a number of demands on the sellers during the due diligence process, expecting them to agree without hesitation to achieve a sale.

First Impressions Count. As soon as your staff leave the centre, they promote the name and branding of your business which will help to grow your client base and attract new enquiry, ultimately growing your business.

As a Childcare Business Broker I get to see a lot of businesses each month and a broad range of financial success between them. First impressions are important and do impact on the success of the business. One area that does vary between centres is whether staff wear uniforms and how much pride they take in their presentation.

Recent sales have been completed with multiple offers being presented to owners, giving them the choice of who will ...

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