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?

Higher subsidies for preschools with 100 per cent qualified teachers have been restored for the first time in a decade.

Prime Minister Jacinda Ardern and Education Minister Chris Hipkins have announced a $278 million funding boost over the next four years for early childhood education (ECE) services with fully qualified staff.

Newly trained early childhood teachers will get pay increases of up to 9.6 per cent in July as a first step towards putting all qualified teachers on the same pay scales.
Education Minister Chris Hipkins has announced that Thursday's Budget will provide $151.1 million over four years to lift the minimum pay rate for qualified teachers in private and community-owned education and care centres from July 1 to the same as the starting rate for kindergarten teachers - $49,862 a year.

1. What are an employer's obligations if staff can't work during a lockdown? Does the boss need to pay them, for instance?

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 ...


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