Thinking of Buying a Center?
Request a Business Valuation
Have a Buyer Already Identified?
Consider our Hourly Consulting Service For Childcare Owners
Consider our Hourly Consulting Service For Childcare Buyers
Your Current Loan is Too Expensive?
See How Much You Will Save With Refinancing
Request a SBA Loan Pre-Qualification to Find Out The Lowest Interest Rate You Qualify For!
Participate in a Benchmark Survey of Childcare Center Owners
We Know The Business Aspects Of Childcare Centers.
- Since 2002, we have helped individuals & companies with:
- Over 100 Sales & Acquisitions of Childcare Centers
- Over 200 Valuations of Childcare Centers
- Over 100 Financing & Refinancing of Childcare Centers
- Over 50 Profit & Valuation Consulting for Childcare Centers
We work with clients nationally!
Childcare Center Sales
- We provide “Childcare Center For Sale By Owner” consulting services in the following situations:
- You are considering selling in the next few years. You want impartial advice to help decide if you should sell now, or not!
- You have been approached by a potential buyer to sell your childcare center.
- You are thinking of selling your center, and you (or your CPA) knows of one or several potential buyers. (If you are a franchisor, your franchisor may introduce buyers to you.)
- Most childcare center buyers are local. As such, a local broker is best to find local buyers. Childcare center owners can use a broker local to the center to maintain confidentiality while finding local buyers, while also using Childcare Brokers to prepare the valuation, prequalify the center for a SBA loan, and provide expert consulting. only when the seller and the local broker want it.
- When your retirement depends upon selling your childcare center (because if often does), you should have someone assisting you with the sales process provide completely unbiased recommendations. This is because instead of being paid a commission only upon a sale (and therefore, tending to have a biases toward recommending a sale), we are paid a consulting hourly fee.
- Compared to a typical business broker commission, our hourly consulting fees can save the seller plenty (See example for a center that sells for $1 million. Our fees will typically save the seller $98,501 to $62,500 in broker fees.)
Childcare Center Acquisitions
We know childcare centers. If you want to buy a childcare center and have never bought a business before, we can provide experienced consulting to prevent major mistakes throughout the process. Such as:
- Overpaying for a childcare center. (A mistake is also offering too low of a price, and therefore missing out on buying a good business.)
- Getting financing that has a higher interest rate than it could be, or not being able to get a loan when loans are available.
- Not doing a complete due diligence. (Buyers don’t want to discover after an acquisition that the center makes less profits than they were lead to believe.)
- Buying a center when the buyer really should not have acquired it.
We often consult with clients considering buying a childcare center both when 1) the buyer is in direct contact with the seller, and 2) the seller is using a broker to market the center for sale. In both cases, we can offer substantial benefits to the buyer.
Childcare Center Valuations
You can’t good decisions if you don’t know what a childcare center is worth! For many small business owners, 60% to 80% of their net worth is tied-up in their business. For Childcare Center owners thinking of retirement planning, one of the first steps is to understand what price their business will sell for.
Many business owners are shocked by their business value when they decide to sell. While most have a value goal in mind, few actually determine its current value until it is too late to do anything about it.
For example, if you have determined that you need to sell your childcare center for $2 million to retire in the style you want to, yet it is only currently worth $1.5 million, then you need to start setting the right benchmarks now, and implementing value enhancing improvements to reach your future business value goal.
Childcare Center Financing and Refinancing
If you are looking to obtain the financing to acquire another childcare center, buy your first center, or refinance an existing childcare center to get more favorable terms; but do not know where to start… Call us…We know where to go to find the funds.
If you approach lenders unprepared, you may face 1) rejection, 2) a lower loan amount than you need, 3) a higher interest rate then you want, or 4) other loan terms that are not as favorable as possible.
As of August, 2021, we can help borrowers get as interest rates low as the following: (As of August, the Prime Interest Rate is 3.25%)
- 3.2% to 4.0% – Refinancing franchised childcare center – up to a 20 year loan – Fixed rate.
- 3.5% to 4.25% – Refinancing an successful independent childcare business and real estate. For childcare centers that are preforming less well: 4.25% to 5.0%.
- 3.5% to 4.25% – Financing the acquisition of a franchised childcare center.
- 3.5% to 5.0% – Financing the acquisition of both a childcare business and real estate. For Business only acquisitions (not including the real estate) and for childcare centers that are preforming less well: 5.0% to 6.0% (prime interest rate plus 1.75% to 2.75%).
- Very financial qualified borrowers with independent childcare centers, can get interest rates as low as the rate for franchised centers.
Exit Planning – i.e. What Should You Do in The Years Before Selling Your Childcare Center?
At some point, every business owner leaves his or her business – by the owner’s choice or otherwise. The key is to know when to sell. We understand that there are many personal and business issues that effect your timing decision to sell and can provide impartial advice to help you make the right decision. We are paid on an hourly basis, so our advice is not clouded by receiving a commission just on the sale of your center.
If you are interested in selling your company, now or in the future, please call or e-mail us at your convenience to confidentially explore your options. We will provide information about the current status of the business sale marketplace for childcare centers, the process of selling a business, an approximate market value of your company, and techniques to save taxes on a business sale – all to help you arrive at a decision.
Business Value Enhancement for Childcare Center Owners
This service is closely tied to all of the above services, but also includes taking an active ongoing role in increasing the value of your childcare centers. Primarily, this service is directed to centers that are managed by an absentee owner, owners of multiple childcare centers, and centers with very high labor expense as a percentage of revenue (+60%).
We focus our expertise on the business aspects of the childcare industry. We apply our 25+ years of expertise and knowledge to deliver three key values: We understand the childcare industry, so we speak your language.