If you are considering selling your Houston area daycare or pre-school center, there are certain measures to be taken as you prepare to list and sell the business. You may choose to save a little money and sell on your own, but there is value in seeking professional help from brokers, lawyers, and appraisers to ensure you are getting the most for your business.
In the US, there is a large demand for quality daycare services and the industry includes well over 50,000 commercial facilities across the nation. As parents in the Houston area continue to work away from the home, the demand for your facility continues to increase. If you are considering selling your daycare business, there is a lot to consider.
The Preparation Stage
If you are the sole proprietor of the daycare, you can make all of the decisions. However, if you have a partner or multiple partners, you need to ensure everyone is on the same page before you move forward. It is best to have everything in writing from everyone with ownership rights. Once the decision to sell is unanimous, you can move forward with the sale.
If you would like to work with a broker, choose one who has experience selling daycare businesses in Houston. Before hiring, it is appropriate to ask some important questions, such as:
- Inquire about their experience.
- Find out how they go about finding buyers.
- Ask what they consider to be the most successful marketing techniques.
Working with a broker will enhance your access to buyers and ensure you are getting the most out of your sale. An experienced broker will also explain the types of documents you need to be prepared to show an interested buyer - relevant licensing, financial statements, a list of assets, etc.
The Selling Stage
Once a listing price has been agreed upon, which can be done by consulting an independent appraiser, you are ready to list your business. The next step is marketing the daycare or pre-school. Your broker will provide ideas you may not have thought of and offer you the opportunity to stay involved or take the hands-off approach. Brokers are useful because they will ensure the sale remains confidential and that every detail is scrutinized from beginning to end. This means you will avoid backlash from your employees and parents of children enrolled in your facility before the sale takes place. Your broker will also help you prepare, when the time comes, to tell your clients and staff – this should be handled professionally and for the benefit of all parties, the message should be positive. This normally happens once the sale has been finalized to avoid any confusion should a sale fall through for any reason.
When a buyer has made an offer or has shown interest, this is where you are needed most! You are the most knowledgeable individual regarding the day to day aspects of your business. You can provide this information to the buyer and convince them to make an offer or sign on the dotted line. Everything from a great client list, an impressive staff, an ideal location and growing profits are best when shared by the business owner who loves this business and has worked hard to build it. An experienced broker will encourage your involvement especially when the sale appears promising.
Should you decide to pursue the sale of your daycare business, we would love to have a conversation about it with you. Call Transworld Business Advisors of Houston at (281) 940-3444 or email us at [email protected] to find out how our team of experienced brokers can help you prepare to sell your daycare or pre-school in the Houston area.
