14 Step Process to Sell a Childcare Center

For those considering selling your business, this is our process to sell a childcare center in Georgia.

Our initial meeting is an opportunity for us to get to know each other and see if we can work together. We understand that selling your business is a major decision and that confidentiality is critical. As a result, the first thing that we will do in our initial meeting is provide you with a signed Broker’s Confidentiality Agreement. We want to learn about your business and why you are interested in selling, and you need to learn about us. During the entire process, we will represent you in each step along the way.

Decision to Sell your Childcare Center now or later:

1. Gather Information. With your help, we collect, and analyze all the pertinent information about your childcare center. It is critical that you understand that selling your business requires a lot of input from you. We need to know and understand your business, and we depend on you to provide the information. We will need at least 3 years of financial information including your P&L’s or Income Statements, Balance Sheets, and Corporate Tax returns. Some of the other things that are needed include information your licensed capacity and enrolment, competitors, employees, the assets included in the sale, your lease, and the reason you are selling your business.

2. Financial Review. We will recast the income statements from your company to adjust for the fair market value of your business assets and to add back discretionary business expenses. This will give us a clear picture of the true cash flow of your business. We work with you to identify all of your current business expenses that could be considered as income for a new owner. This is a critical step that is required to be able to validate the highest possible price for your business. This will require that you work with us to understand your business expenses.

3. Market Valuation Analysis. Based on the information that you provide, we will arrive at a market value for your business. You will know what your business is worth and why. It will be the basis and justification for the business purchase price for both potential buyers and lenders.

4. Agreement to sell your business … or helping you decision to hold off selling for now and you concentrate in increasing the valuation of your childcare center. Based on the Market Valuation Analysis of your business, we will decide on the specifics of price, terms and conditions that are appropriate for the sale of your company, and we will complete a formal Listing Agreement to sell your business.

The process of Selling your childcare center:

5. Professional Documentation. We will prepare a sophisticated and comprehensive Confidential Business Review to enhance the presentation of your business to potential buyers. This document will be the compilation of all the information that we have collected about your company, and will be the starting point for working with potential qualified buyers. It will include an Owner’s Justification for Purchase Price where we support the validity of the asking price with a realistic review of the numbers.

6. Generic Profile. We will create a generic Business Profile for your business as the basis of promoting your company while we maintain your confidentiality. All marketing and promotion activities are conducted in a manner that protects your company’s identity but generates interest in your opportunity.

7. Marketing and Promotion. We will generically list your company on web based “business for sale” sites. We will send an e-mails to all buyers we have every had contact with that wanted to buy a childcare center. We will have targeted direct mailings to specific childcare centers. We will send information on your centers to other business brokers in other states that specialize in childcare centers. We will send information on your center to other business brokers in Georgia. We will advertise in childcare industry publications. We will work with you to determine additional activities that will enhance the sale of your business. We “co-broker” with other brokers both locally and nationally to enhance the process of selling your business.

8. Business, Marketing and Sales Advice. After a careful review of your business and in conjunction with your expertise, we will determine the things that would be prudent for you to do or change in order to prepare your business for sale. We will determine the areas that may mean new potential or opportunity for a buyer or ways that a new buyer may change, grow or expand your business. We will also discuss the various ways to structure the sale of your business. Such things as terms and owner financing will have an enormous impact on the success that you will have in selling your business.

9. Pre-Qualify Potential Buyers. We will identify interested buyers and determine their qualifications to pursue your business opportunity. We will have them complete a Buyers Profile and provide a confidential Financial Statement. If a potential buyer is qualified, we will have them sign our Buyers Confidentiality Agreement before we will provide any specific information for them to review regarding your business.

10. Bring Buyers and Sellers Together. We will review your company with the interested qualified buyer and answer all relevant questions. After determining a potential good fit, we will discuss the interested buyer with you and arrange for the potential buyer to meet with you and have a tour of your business and discuss your opportunity. This is your chance to present your business and discuss its potential with a qualified buyer.

11. Getting an Offer. If all goes well and you are comfortable with the buyer and the buyer is interested in your business we will encourage the buyer to submit an Offer To Purchase for your review. We are able to work with and provide information to potential buyers on how to make a serious offer.

12. Acceptance of an Offer. You will either accept, reject or counter any offers that you receive. We will help you review and negotiate any offers and assist you in preparing counter offers until a deal is acceptable. We represent your interests all through the intense process to work out the fine details of the formal agreements. Once you and the buyer have agreed to all of the terms and conditions of the sale, you will formally accept the offer.

13. Due-Diligence and Financing. Once you accept the negotiated formal offer to purchase your business, the buyer will be given a scheduled “due-diligence” time to further examine your company with access to all business and financial information. This is the buyers’ opportunity to confirm that all information regarding your business is accurate. We will assist you in the due-diligence process and assist the buyer in securing financing.

14. Closing the Sale. To protect both the seller and the buyer, closing the transaction will require careful preparation of all necessary documents. We will co-ordinate bringing together all of the professionals necessary to close on the sale of your business. We have a network of qualified closing attorneys who specialize in business transfers that we will recommend handle the legal sale of your business. They will save you money on closing costs, and you can be confident that your sale will be handled properly.

15. Start the next chapter in your life…

JayWhitney@ChildcareBrokers.com 770-410-7582

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