Childcare Center for Sale by Owner

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 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:

$499 Calculation of Value Estimate of the Market Price and Terms based on the information provided to us on the “Confidential Business Value Form” and a discussion we have with the Childcare Center’s Owner. This is only to be considered a “value range” and not an exact value. This “ball park” value of your Childcare Center business is far short of the below Calculation of Valuation priced for $1,499, but it could be a first step in understanding the value of your center. If you are going to negotiate with potential buyer(s) about the price or start marketing your center for sale, we recommend the below Professional estimate of the market price and terms because it will give you the confidence that your asking price is a realistic price. If you purchase the below Professional estimate of the market price and terms, then the $499 paid for this Calculation of Value Estimate of the Market Price and Terms applies to the $1,499.

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.

$1,499 Professional Estimate of the Market Price and Terms of your Childcare Center business – includes everything you need to get ready to actually negotiating with potential buyers about the price. Without a good idea as to what your childcare center is worth, if you want to sell your childcare center, you could either tell potential buyers too high of an asking price (and likely not sell it, because the asking price is not reasonable which will turn buyers off), or tell potential buyers too low of an asking price (and give up money).

(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.)

$3,999 Everything for you to Market your own Childcare Center for Sale – includes everything you need to get ready to actually market your childcare center to potential buyers. This includes our above professional estimate of the Market Price about the price, as well as the following additional services.

Exit Planning – to discuss with you the current childcare market of buying and selling childcare centers and the options for selling now or latter, and what can be done to increase the value of your childcare center in addition to just increasing its profits. We are not tax experts, but, because we deal with selling businesses all the time, we see want good tax planner are recommending. If all you have is an tax preparer, instead of a tax planner, we could help you save taxes. For a recent client who sold her childcare center for $1.9 million, we recommended an approach to save $200k in taxes.
Preparing a marketing package that you could use to market the business for sale. Do you know what information potential buyers are looking for? We do… and we know how to present it! If you do not provide all income and balance sheet data to us in MSexcel form, we charge an additional $275 because we have to re-key all financial information.
Pre-Qualifying your business with business lenders. Most potential childcare buyers are not experts in getting business loans. Make sure that if you agree to a deal price, that the buyer can secure the financing needed.
A copy of a sample non-binding Letter Of Intent (LOI) for a childcare center that could be used as the basis of the negotiations between the buyer and seller. The issues addressed in this LOI will allow you to minimize the hours required by an attorney to negotiate “business” issues (price, seller financing terms, transition period, non-compete period & distance), good-faith deposit, timing for due diligence, securing financing, and closing on the deal, …), so that they can concentrate on preparing the Definite Purchase Agreement and negotiating the legal agreement.
To help you make the best impression with potential buyers, we can offer all of the above services for a price of only $3,999. Owner does all sales and marketing.

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. 770-410-7582

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