Putting Your Daycare Center Up For Sale? Tips For a Smooth Sale and Transition

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Are you currently the owner of a daycare center in the beginning stages of preparing your beloved daycare for sale? Here at NJ Broker Plus, we want to ensure your selling process is seamless and when you put up your daycare for sale, you receive the price you deserve. Every business is different, which makes no two buying and selling processes alike. So if you’re ready for some useful tips in selling your daycare center, keep reading!

Do Your Research!

After making the initial decision to put up your daycare for sale, your next step is to do your seller due diligence. This begins with research; if you’re reading this blog you must have already started! Doing a bit of market research is a great way to start understanding the industry in which you’re selling. Getting an idea of average sale prices and what buyers are looking for in the daycare business will help you evaluate your own current daycare center and target the right buyers for your business. Keep in mind the different types of buyers when selling. These buyers include those who self-pay and have cash available to spend, versus those who finance through a bank or require seller financing. You also want to perform a business valuation on your daycare to receive an accurate value for your business that can be used to create a fair asking price. You can always count on the experts at NJ Broker Plus to assist you in the valuation and researching process, to ensure you have all the resources you need for your sale.

Gather Your Most Important Documents

At this point, all of your important business documents should be gathered and organized for the beginning of your sale. Such as: copies of business tax returns, recent P&L statements and  lease (if you’re renting space). Having those documents on hand is essential for any questions that may come about from potential buyers. At this time you should ensure that all of the correct licenses and permits for your daycare center are up to date and your finances are in order. This will help your transaction go smoothly. Once all of your documentation has been gathered and organized, you are one step closer to your sale. 

Prepare Your Daycare Center

As a business owner, you understand how important it is to keep the operation of your daycare running efficiently. A successful transition of ownership relies greatly upon having accurate records and providing proof of sales and expenses during due diligence (post offer time period when buyer takes a deep dive in your financials to become comfortable with the business finances).  You should make sure all financials are well documented in preparation for the sale of your daycare center. Not only do you want your daycare center to appeal to many buyer candidates, but you want to make sure your records will support buyer due diligence. Finding a financially qualified entrepreneur to purchase your business is often not as easy as it may sound. Before your sale, be mindful of your current profits and make sure you have documentation to support that profit during due diligence.

Last but not least, prepare your site and employees for the sale. Whether you want to inform them of your decisions or not, make sure your daycare center can run efficiently without you. Make sure your center is clean and in tip-top shape for potential buyers to view.

Let The Experts Help You Along The Way!

When you’re ready, hire our team of experts to confidentially market your daycare center business! Now that you have done your daycare selling research, you are ready to contact the experts at NJ Broker Plus to set up a no-obligation meeting. 

Selling a Daycare FAQs

Mike Janis
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