Linda Harley The first quarter of the year has certainly been interesting with the continued disruption of Omicron working its way throughout NZ.
This has impacted the centre operations with occupancy, meeting staff ratios while many have been isolating and rising costs.
Our advice to all business owners continues to be that they keep a close eye on their financial management to ensure costs are keep in balance with revenue and help navigate through increasing rents, wages and general expenses that is impacting all business owners in current economic times.
If you measure it, you can manage it.
Despite this disruption we are continuing to work with a good range of purchasers wanting to acquire childcare businesses including teachers and investors wanting their first centre, to multi -site operators seeking to grow through acquisition of existing centres.
Freehold property investors are also in the market, albeit with an expectation on achieving a higher yield to offset the rising interest rates.
Sales continue to be a challenge where buyers require finance. The softening residential market has a flow on effect for Business sales with banks taking a lot longer to complete their detailed finance approval process.
As brokers specialising in the ECE sector we have proven systems in place to complete a comprehensive appraisal to establish the potential market value, pre-qualify buyers and take the sale through the Due Diligence process to achieve a positive outcome for all involved.
If you are thinking of buying or selling and want an update on the current market, get in touch with Linda Harley.
