The Impact of Time on Selling Price

Timing the business sale to favorable economic market and industry conditions can increase predictability and valuations.

  • Industry Status – If the childcare industry is growing then childcare centers in general are more valuable than in a shrinking market.
  • Risks to a Company’s Value controlled by others:
    -New significant Competitive Threats – example: a new childcare opening up nearby
    -The Economy

    Rising value of business (sales are increasing)
    Declining value of business (sales are falling)

    Waiting too long to Sell can Reduce Selling Prices
    Is it better to sell when a childcare center is doing well.
    Waiting can lead the childcare center owner to sell quickly and move on because of burnout, health, or death.
    With a successful childcare center, a owner sometimes coasts along, taking the eye off the ball and leading to downward spiral or languishing business

    If you have decided to sell your childcare center, you will likely get a better price if the center is being proactively marketed for sale. If you are only reactive and wait until potential buyers give you offers, you are less likely to find the ideal deal and it will likely take a longer time.

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