In addition to our exclusive marketing services (See our website page “14 Step Process to Sell a Childcare Center” for the details), we have two options to assist you in selling your childcare center for center owners who prefer the “For-Sale-by-Owner” approach. Using a “Childcare Center For-Sale-by-Owner” approach, you can save lots of money in business broker fees. Using this approach, you sell your own center and use our professional assistance only when you want it.
Warning: Selling a Childcare Center (as any business) can be difficult, long, and involved process. Most business owners are not success in selling their own business for the following reasons:
- Do not have the time to sell the business in addition to successfully managing their business. (Because if the business suffers, the price drop.)
- Do you know what information buyers are really looking for when buying childcare centers?
- Difficulty in maintaining confidentiality.
- Do you really know how childcare centers are valued? (i.e. Could you reject a great offer, or accept a poor offer?)
- If you have not sold a business before, do you really want to sell one of your most valuable assets without experienced help?
However, if your childcare center is outside of the State of Georgia, we will help you using a “Childcare Center For-Sale-by-Owner” approach. Why do we do this? Because we know that in every state of the country there are real estate brokers and business brokers who do not anything about the childcare industry and childcare centers who will “list” childcare center businesses for sale… and they do not do most of the key steps correctly.
Option 1. Non-exclusive Marketing. You make us aware that you may be interesting in selling, to the right buyer. You are free to find other potential buyers. We only get involved if we find a buyer in which case our fee is a percentage of the sales price. We market your center for sale on for the www.ChildcareBroker.com website and to the buyers in our database. You are free to market it on any of the many websites that advertise “businesses-for-sale”, and we are not going to duplicate your advertising efforts.
Option 2. Childcare Center For-Sale-by-Owner. Pay for Individual Services: (There is no broker fees based on a percentage (%) of the sales price.) The prices are listed below. If you feel comfortable selling your childcare center yourself, this can be a way to save money on the broker fees, but still obtain some of the benefits of having a business broker experienced with Childcare on your side.
Services on an a-la-carte basis:
We also provide Childcare Tax Consulting for childcare centers childcare centers to reduce taxes:
- Identify yearly income tax credits which your childcare center is not using as compared to tax credits that other childcare centers are using. Tax credits are often available for hiring new employees, major tax credits are often available for expanding a childcare center (varies by location).
- Identifying tax strategies that a childcare center owner can use when selling a childcare center. If your childcare center’s CPA is great at “preparing income tax returns”, but not good at “Tax Planning” to reduce taxes, we can provide tax strategies that other childcare centers use to reduce taxes.
- If you are buying a childcare center, if the seller doesn’t have a good CPA, and you can present ideas to the seller to save the seller taxes with a sale, the seller may accept your offer price, even though it was not as high as they wanted, because your offer will net them more after-taxes than what they were hoping for!
- If you are buying a childcare center and you don’t yet have a good CPA, you may want some ideas on structuring the acquisition transaction to save yourself taxes on a yearly basis after you buy the center, and in the future, when you sell the center, save you taxes also! Planning from the very start will help you save the most.
If this tax consulting specifically for childcare centers is done in conjunction with the the $499 Calculation of Value Estimate of the Market Price and Terms detailed above, the total price is $749. The cost of the Childcare Tax Consulting for childcare centers is purchased separated, the cost is $499. If we don’t provide you tax strategies that will likely save you over $749 in taxes, we will refund the purchase price for the tax consulting. Most Childcare center owners generally can reduce their taxes by $2k to $5k per year as they continue to own a childcare center, or up to about $180,000 when selling a childcare center.
(Note: This market price is based on the profitability and business aspects of the childcare center business. Since most childcare centers are special use facilities and are expensive to convert to other uses, this is a good estimate of what the real estate is worth, but it is not a real estate appraisal, which an appraisal firm local to you should do. This estimate of the market price and terms is NOT a valuation that should be used if it has the potential to go to court, or if this calculation of value needs to be reviewed by others, such as the IRS for tax implications because we are not coming to a “conclusion of value”, but merely a “calculation of market price and terms” based on a limited amount of investigation and due diligence. A business appraisal meeting the standard requirements for legal disputes will typically cost much more than $1,499. Although this Professional Estimate of the Market Price and Terms cannot be used in court, it can be a very valuable tool for business owners or professionals. Typical uses are as follows:
- Assisting an owner to establish an initial asking price for the potential sale of a childcare center business
- Estate planning
- Business planning
- Developing a “preliminary” value for litigation matters
- Any matter where an “initial” or “calculation” of value is acceptable
If our estimate of a Market Price is higher than a real estate appraisal, use our Market Price. If our Market Price is lower than a real estate appraisal, then most potential buyers will likely have a difficult time securing bank financing to buy your center. This is because our Market Price considers bank’s lending criteria in the valuation (i.e. If a buyer is not able to finance an acquisition, then a sale is not likely to happen.)
If you feel comfortable selling your own childcare center, the above services will get you started. But, it does not include all the other tasks that will need to be done for you to have a successful business sale. These other tasks include: Screening and Qualifying potential Buyers, Negotiations, Due diligence, updating the Professional estimate of the market price and terms of your Childcare Center business if financial conditions change,…
If you require our expertise in consulting with you on any issues that may arise until your business is sold, you can hire our childcare business sale expertise on a hourly basis. For example, here are some common situations where you may want advice on that specific situation:
- Before you start giving confidential information on your business to a potential buyer, you want our opinion on if the buyer has the financial strength to acquire your business considering the current financing situation.
- During the middle of the negotiations you may want advice on if you should accept an offer or what you should counter-offer with.
- The potential buyer is asking for specific conditions, and you do not know if those are customary in childcare center sales.
- You want assistance to prepare the due diligence requested by the buyer.
If you truly want to sell, and have never sold a business before, we can do just about everything to make sure that your business is prepared to sell for the highest price your business sells. If you are prepaying and purchasing 100 hours or more of consulting time, you get discount rates:
- $250 per hour ($250/hour) – prepaying for hours
When we market and sell a childcare center using an exclusive marketing services agreement, we typically spend an average of 300+ hours on the project. As long as you have the time to sell your center in addition to operating your center, or if the typical broker commission on the sale of your school would more than $100k, you can save lots of money in business broker fees using the “For-Sale-by-Owner” approach.
$60,000 Profit Improvement Consulting / Exit Planning / Selling Your Childcare Business (fixed price) – We work with you for up to 24 months to both increase the value of your business and to sell your childcare center. For most childcare centers with a licensed capacity of +140 children, we will be able to increase profits by a minimum of $20k to $30k per year with a goal of at least 5% of revenue. In addition to the yearly profit goal, the goal of this fixed price plan is to increase the value of your business by much more than $60k.
Our fixed fee pays for itself! For example, if we identify profit improvements of $30k per year, over two years you will save $60k. At the time of the business sale, those $30k of profit improvements would likely increase the value of your childcare center by at least $75k to $90k. By you selling your childcare center using a fixed fee arrangement, versus a percent commission, you will also likely save money.
For the a-la-carte services, we accept credit cards, PayPal, and checks.