Creating a successful center leads to you building business equity $$s with your efforts.
As you prepare to do other things in life and consider selling your center and unlocking the equity you have built up
it is essential to prepare effectively for this important event to maximize your return on investment. Ideally, you should start preparing for a possible sale 6 to 12 months before the target sale timeframe; this will allow you to put your best foot forward to maximize the sales price. We can help you identify actions to get ready to streamline and prepare your program and financials for sale. For every $1K incremental annual profit you achieve, there is a 2x-3x impact on the sale price.
Why Consider PIVOT Advisors?
PIVOT Advisors have deep experience in Childcare Center business, focus only on Childcare Centers, and can help you get the maximum value for your Childcare Center business. Traditional business brokers are generalists, selling a wide variety of businesses, like Car Washes, Gas Stations, Grocery Stores, QSRs, etc; and Childcare Centers to them is just like any other business they may sell. They traditionally have no experience in the Childcare Center business and its unique characteristics and intricacies, so cannot help maximize the sale price,
A business broker, whether local or national, typically charges 10% of the sales price as a commission. Additionally, they charge 5%-6% of the value of the real estate if included and sold, or 5%-6% of the total rents for the initial lease term. While their motivation is to expedite the sale to unlock their commissions, they often represent both the seller and the buyer, creating a conflict of fiduciary responsibilities.
PIVOT Advisors Alternate Approach
With technology, the market has changed; yet traditional business brokers operate as if it is the 1990's. With technology, with well connected ECE networks, you may consider selling your center on your own with the support of experienced PIVOT Advisors. Online communities of ECE professionals make it easier to find potential buyers, saving you significant commission dollars and keeping more of the equity value you have built.
Our Services:
Before you decide whether to use a broker or sell on your own, consult with PIVOT Childcare Advisors. We'll help you create a game plan for selling your center, including:
Valuation estimate: How much is your program worth? How to price it?
Steps to take to maximize your business valuation
Steps to lower barriers to sale
Recommended method of sale; support you through the process
Sales plan development
Creation of an Offering Memorandum and financial packet
How to find and evaluate a buyer
Finding qualified potential buyers who compete to buy your business
How do keep the process confidential
Negotiation support, and assistance with sales agreement execution, and closing
California Centers
If you're in California, Rick Kapur, is also a CA Licensed Real Estate Agent (#02221265; Alliance Bay), and can act as the sales agent for your preschool business. With his firsthand experience as a preschool co-founder, owner, buyer and seller, Rick has deep expertise in the space. Rick is part of the Northern California ECE Owners/Directors networks, with access to qualified buyers.
To the local ECE community, Rick offers his services at a cost that is lower than the traditional business broker commissions.
Email: rick@thepivotadvisors.com