When the time comes to sell your Childcare business one of the first questions is “what is my business worth”. While many business owners genuinely do not know, others have an unreal expectation.

While it can be a little cliché “your business is worth what someone will pay for it” .

There are number of rules of thumb to value a business, and everyone will have an opinion, however’ when it comes down to actually achieving a sale of your business it will be dictated by Price, Presentation, Promotion and the negotiation through the sale process.

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.

Will you Receive value for what you create.

The importance of planning for the future of your childcare business can not be underestimated. A business plan provides you with a clear road map and strategy to grow and achieve your business goals and financial objectives but of equal importance is the Exit plan. How are you going to optimise the value for the business you have created?

In recent weeks we have come across business owners who tell me they have a “private buyer” for their childcare centre, so would not require our services. In principle this probably sounds good to business owners with “no commission to pay”. In reality, and from my experience, they are unlikely to be achieving the best possible outcome for the sale of what is possibly their largest asset.

Having an exit plan in place is not an indication of your lack of confidence in being a success, on the contrary, building your business with the “end in mind” will ensure you achieve the ultimate goal in business ...
The childcare sector continues to be very active with a high demand nationally for businesses and freehold properties. The Childcare sector is highly desirable for a broad range of Investors ...

More children will get access to early childhood education (ECE) and the Coalition Government is taking financial pressure off providers, says Education Minister Chris Hipkins.
“Budget 2018 delivers the first universal cost adjustment for early learning services since 2008 when we were last in Government, plus an additional 62.5 million early learning hours over the next four years.
“For too long, early learning providers have been forced to do more with less, putting pressure on service quality and prices. We believe the young kids and parents they serve deserve better.

Due to Confidentiality, not all Childcare opportunities are marketed through the Childcare Sales website.  

The following is a selection of Recent Sales by or in conjunction with Childcare Sales Ltd

Press "READ MORE" to see full list.

Location          Licensed Places           Type                  Price

Waikato                  30                     Leasehold            $400,000

Waikato                  30                     Freehold              $400,000

When selling a Childcare business where the owner also owns the property, it is common for the new business owner to try and negotiate a Right of First Refusal to purchase the property in future within the Deed of Lease. This is a decision that should not be taken lightly. It will have future consequences that need to be carefully considered...


Subscribe to News