Exit Planning Case Study: Underfunded Retirement

At our initial meetings with a childcare center owner, the Owner (age 68), told us that her childcare center was worth $1.5 million. We questioned her on her goals. She was ready to retire soon and needed the money from the sale of her childcare center to fund her retirement. Unfortunately, our valuation of her center indicated that it was only worth $1.0 million. She had two basic options: 1) continue running the center until the value increased, or 2) sell now, and retire – but not in the style that she was expecting.

We gave her some ideas as to how she could increase the value of her business. Some of these ideas could be implemented in the short-term (Like painting a house can be done quickly when trying to sell a house) and some would require work over a long-term. For some ideas that can increase the value of your childcare center, please refer to other articles on our website, or contact us and we can send you a report on on Exit Planning and how to increase the value of your center.

If you are thinking of retiring within the next 5+ years and want to know now what your center is worth instead of what you think it is worth, contact Childcare Brokers. Do not be surprised. We can help you better plan for retirement.

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