We offer three levels of valuations.
- A Calculation Of Value when you just need a ball park valuation.
- A Professional Estimate of the Market Price when you are ready to negotiate.
- An Advisory Estimate of the Value provides childcare center owners with a realistic price in today’s marketplace and the report can be used to detail out the center’s value drivers to the center’s potential buyers.
Unrealistic price expectations kills deals. We provide valuations that you need to hear, not always what you want to hear, in order to make a critical decision. Most childcare center owners plan to sell their childcare center to fund their retirement. Often, these owners need that sale to cover 60% to 80% of their retirement income. Yet, when it comes time to sell their centers, less than half of all childcare center owners plan ahead.
- Image you worked in corporate America, and waited until retirement to open a retirement account and talk to a financial advisor. This would be considered poor planning, but, many childcare business owners do it all the time.
- Image you had kids entering kindergarten and you didn’t get a report card until they graduated from high-school, this is very much like a childcare center owner not getting regular business valuations.
- The “Proud Parent Syndrome” is when a parent says “My kids are the best”. Similarly, many childcare center owners believe that their centers are worth “Millions & Millions”.
$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 “Professional Estimate”, but it could be a first step in understanding the value of the center. If you are going to negotiate about the price, we recommend the below “Professional Estimate” of the market price and terms. (Click to download the: Childcare Brokers Business Value Form )
- Ready to get started with a Calculation of Value Estimate of the Market Price and Terms? Click the “Add to Cart” button and then go to the Checkout at the bottom of this page to submit your payment. After the payment is submitted, send the Confidential Business Value Form to Value@ChildcareBrokers.com, and let us know when you are available to schedule a phone call with us in the next day or two.
$1,499 Professional Estimate of the Market Price and Terms of the Childcare Center business – includes everything you need to get ready to actually negotiate about the price.
- Childcare center owners – Do you really want to sell your childcare center? Without a good idea as to what your childcare center is worth, 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).
- Buyers – You may know that the Asking Price is, but, do you have a good idea as to what the childcare center is worth?
- If the Seller’s asking price is too high (this is often because the seller doesn’t know how to value a business, or because the listing broker got the listing by promising to the seller a higher price than the business is worth.) – The Buyer should offer a fair price for the childcare center, no matter what the asking price is, or not buy the center.
- If the Seller’s asking price is reasonable or low – Sometimes, because Buyers expect to negotiate, a Buyer may offer a substantial discount from the asking price, and therefore lose out to other potential buyers on buying a good childcare center for a great price.
- Ready to get started with a Professional Estimate of the Market Price and Terms? Click the “Add to Cart” button and then go to the Checkout at the bottom of this page to submit your payment. After the payment is submitted, send the Confidential Business Value Form and all of the other information (as detailed out in the Frequently Asked Questions) to Value@ChildcareBrokers.com, and let us know when you are available to schedule a phone call with us in the next day or two.
Advisory Valuation Estimate provides childcare center owners with a realistic price in today’s marketplace, and the report goes into much more details (than the Professional Estimate) to show why the price a reasonable price based on the center’s value drivers. This valuation can be used by a seller on likely the largest financial transaction of her life.
- Are you a childcare owner selling your center (both business & real estate), and you don’t know what potential buyers are looking for?
- Are you an business broker or real estate broker considering listing a childcare center, and you don’t know how to value the center and exactly what type of information should be presented to potential buyers so to influence the buyers offering price?
We provide a 12 to 15+ page report. This report covers in detail the risk factors and the value drivers. This level of details can provide potential buyer with assurance that the price is a fair and reasonable price. The valuation report shows:
- Trends in the marketplace of business sales & acquisitions
- Market data recent sales & acquisitions of childcare centers
- Trends in the childcare industry
- Current economy
- Historical cash flow, financial analysis, and future earning potential
- Analysis of enrollment & capacity
- Benchmark analysis – comparing the center to the industry.
- Value drivers and risk factors
- Loan Pre-Qualification letter of the center showing interest rate, terms, and the required down payment from a potential buyer.
We can vary the contents of the “Advisory Valuation” to fit your needs. Contact Childcare Brokers for pricing.
Increasing Valuation After Taxes
The purpose of obtaining a valuation for most of our clients is to to negotiate the sale or acquisition of a childcare center. But, sellers, in making their decision to sell, will often be more concerned with what they will net from the sale after taxes. Buyers base their offer price on what they expect to make in the future, and taxes will have an effect.
We provide Childcare Tax Consulting for childcare centers childcare centers to reduce taxes. We are not tax experts, but, because we deal with selling businesses all the time, we see what good tax planners recommend. The options we recommend can be taken to your CPA to determine if they can reduce your taxes.
If all you have is an tax preparer, instead of a good tax planner, we can suggest tax planning options to consider to help save taxes and make deals happen. For a client who sold her childcare center for $1.9 million, we recommended an approach that saved her $200k in taxes.
- Identifying tax strategies that a childcare center owner can use when selling a childcare center. If a 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.
- Buyers, when negotiating, if you are able to present ideas to the seller to save the seller taxes (that the seller doesn’t know of because the seller doesn’t have a CPA good at tax planning), 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 CPA good at tax planning, 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 more taxes! Planning from the very start will help you save the most.
- Identify yearly income tax credits available for childcare centers. is not using as compared to tax credits that other childcare centers are using. Tax credits of $2,400 to $4,800 each year are often available for hiring new employees, and major tax credits are often available for expanding a childcare center (varies by location).
Our childcare centers tax consulting fee is $250. If we don’t provide you tax strategies that could save you over $250 in taxes, we will refund the purchase price for the tax consulting. Most operating childcare center owners can reduce their taxes by +$2,400 per year. Many sellers can reduce their taxes by up to $200k if they are selling soon, and have a greater tax saving if they are selling in more than five years. Most buyers can structure the transaction such that they will be able to reduce their taxes by up to 10% of the purchase price allocated to the “value of the goodwill”.
- If you are getting a valuation, are you also ready to get information with Increasing the Valuation After Taxes? Click the “Add to Cart” button and then go to the Checkout at the bottom of this page to submit your payment. After the payment is submitted, during our scheduled phone call to discuss the valuation, we will also cover tax planning strategies and provide you with written documents that you can provide to your CPA, or, if you are a buyer, to the seller in your negotiations.
Contact us if you have any questions on requesting a childcare valuations.