Business Exits By Industry
Selling a Child Care Center
In any market, there are sellers and then there are serious sellers. We'll give you the tools you need to be taken seriously when you decide to sell your child care center.
The child care center-for-sale marketplace is a nuanced environment, full of pitfalls for sellers who aren't prepared for its demands.
Fortunately for sellers, forward-thinking entrepreneurs continue to be attracted to child care centers that exhibit strong financials and potential for future growth.
Current Market Conditions
No one plans to sell a child care center in a down economy. Although the economy is gaining steam, recovery is slow and entrepreneurs are holding their cards close to their vests. However, many business sellers don't realize that a full economic rebound can have devastating consequences, particularly if sellers who have waited to list their businesses suddenly create a glut in the business-for-sale marketplace. So what's our point? The economy isn't the most important factor in the sale of your business. Instead, you should be focusing on making your child care center as attractive as possible so to buyers right now.
Seller Financing
Capital is hard to come by these days. Thanks to more stringent commercial lending requirements, sellers have become de facto lenders, providing the financing buyers need to get their feet in the door. Although 100% seller financing isn't recommended, sellers are financing up to 70% of the sale price to close deals.
Should I Hire a Business Broker?
When selling a child care center, you have two choices: Hire a broker to facilitate the sale or perform the sale unassisted. Is there a cost associated with hiring a broker? Sure - about 10% of the final sale prices. But a good broker will make selling your child care center much less painful. You can also expect to receive a higher sales price for your business in a broker-assisted deal.
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