Why Not Use a Traditional Real Estate Broker When Selling or Buying a Center?

Traditional read estate brokers know real estate, but they do not understand how to value and sell businesses. Most do not know how to read the financial statements of small businesses… which would make it extremely difficult to value goodwill (which is primarily based on the profitability of a business). So, they are likely to value a childcare center business either too high or too low.

To prepare this article, I perused the ads for childcare centers for sale that are being represented by traditional real estate brokers. This is what I found included in the ads to attract potential buyers:

  • Pictures of the Childcare Center. (i.e. Easy for employees, parents, and competitors to discover that the center is for sale.)
  • Information on the number of bathrooms in the center, but no information on the revenue or profits. (i.e. How many potential buyers are really more interested in the number of bathrooms than the profits of the center?)

If you are thinking of selling your childcare center and you have only talked to real estate brokers, call us. We understand childcare centers.

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