Other than the businesses listed for sale on this site, do you have any other childcare business opportunities for sale?
- We are aware of childcare center owners that are thinking of selling their childcare center, but generally they need to decide if it would be better for them to sell now or later. Feel free to contact us so that we can match you with centers the moment they become available.
I am thinking of starting a Childcare Center, what are the advantages of buying an existing Childcare center business?
- Unknown Results. An existing childcare center business will have a history for you to make decisions. A start-up will have unknown future results.
- Avoid one to two years of losses and no profits. A new day care center can take a year or so to build, during which time, you are not making any money. As a matter of fact, until a new center hits the breakeven level, you would be losing money.
- Ease of Investigation. To buy the right childcare center business, you should thoroughly investigate it. This includes its past activities, operations, current status, the competition, customer base, the industry and its future potential. You will then determine how it would do with you as the owner. This information gathering should be substantially more accurate and easier to obtain when dealing with an existing childcare center.
- Infrastructure. By buying an existing childcare center you would have the benefit of purchasing a company that has an infrastructure including customers, suppliers, employees, equipment and systems. This would allow you to focus on building the business as opposed to a start up where everything begins at ground zero.
Can I use my 401k or IRA assets to purchase a business, without tax implications?
- Yes, the tax code allows you to transfer money out of a qualified retirement plan to purchase stock in your own business. Since no “rollover” takes place, there is no taxable event. We can direct you to appropriate companies that can do this for you. You will want your attorney and accountant to review any deal. Several buyers that we have worked with have acquired a business using this method.
How much money is required for a down payment to buy a Childcare Center?
- If the Center includes the Real estate, Banks require a minimum equity down payment from the Buyer of 10% of the purchase price, although a 15% equity down payment is more common. After closing costs and working capital requirements are added, the equity available for a down payment could be as high as 20% of the purchase price.
- The actual amount of the down payment will depend on the particulars of the Childcare Center and the Buyer’s personal financial statement and credit history.
JayWhitney@ChildcareBrokers.com 770-410-7582