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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...

We have been involved in an increasing number of sales where the owner wants to sell the Business and retain the Land and Buildings to be a passive Landlord. This brings up a number of questions from the Seller as to what should be in the new Lease agreement and who is responsible for what.

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

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.