If you’re thinking of selling your child care centre, you’re probably thinking that you’d love to know who to consult to make sure you get the best offer. You’re probably reading about the past experiences of others, asking how others got great offers for their Child Care Centre.
In this blog we’d like to guide you through top 3 ways to successfully get the best offer for your child care centre, and give you better clarity on the best time to sell. Plus, we’ll spill our secret on how to get the BEST offer! Here are our three most effective ways to sell your child care centre.
What is the key to get the best offer?
I often use this analogy to explain, “Let’s say you have a car. When the car is working just fine (engine, parts, and seat covers are okay), you can easily get a good deal. But when the engine starts to fail… you’re lucky if you find someone willing to pay half the price.”
Child care centres are no different. The better the business is running, the better the offer you’ll receive.
So how do you sell your child care centre?
You could sell openly, which may include advertising fees, however you may be running the risk of conditions around finance which can result to the termination of the sale… This is a key concern of many centre owners.
When is the best time to sell to get the TOP value?
The question is when owners should look at selling… too often owners think that when the business is running well, it is best to hold on. While this is true from a cash flow perspective, it does limit your child care centre from securing top dollar.
Historical figures can become irrelevant as soon as the current performance faces any of the following issues: low occupancy, after the transition of kids from year to year; a market review, having increased the rent well above the typical rise; or wages not being maintained at a 55% ratio to revenue.
So how do you REALLY get the best offer?
Let’s go back to my response above. The car in great condition gets the best offer, of course! Why? Because the buyer need not to spend more to have it fixed.
It all makes sense, doesn’t it? The best way to get the best offer, is to sell it while it’s not facing any problems yet… and of course, selling it to the right people. Look for companies which have readily available capital, this lowers the risk significantly for a successful sale. Those who have established themselves to be the best by providing quality transactions with their customers.
So when you’re considering selling your child care centre, please look at how your business is performing, ask yourself if it is the right time to sell it, and meet those who have capital readily available.
If you’re interested in getting the best value offer for your child care centre, send us a message or leave a comment below.
You can apply for a free appraisal here to find out what your centre is worth