Ideally, the owner of a successful child care business plans for their eventual exit while still setting up their business, in other words at the very beginning. Registering a separate corporation with the Secretary of State will help to ensure a smooth transition when it comes time to sell. This business entity should have papers showing the ownership of the company and should keep its finances separate from those of the persons involved. Also, the owner may want to hold the real estate in another company and pay themselves rent. Both of these strategies will enable a prospective buyer to grasp the financial strength of the company easily. As child care centers are valued on their profitability, allowing a prospective buyer to easily view the company’s finances in a verifiable format is crucial. This means reporting the company’s income on federal tax returns, so it can be verified by a buyer’s lender. Reporting all the income and expenses accurately allows both a buyer and their banker to maximize the loan amount. Income that is not reported cannot be utilized in calculating the value of the business.
During the sales process, confidentiality is very important to ensure that the business continues as it has historically. Childcare Properties works to protect your confidentiality during this time by releasing information about the business only to persons who have signed a Confidentiality Agreement, and who provide proof of funds for a down payment on the opportunity.
We provide an extensive brochure with information about the business, area, competition, demographics, a financial summary, and lots of pictures to assist the buyer in determining their level of interest prior to direct contact with the opportunity
We can also assist in finding a lender and work with the Buyer to ensure a smooth transition..