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How To Value Your Preschool Business So Buyers Do Not Take You To School


Valuing And Selling Your Preschool

Owning a preschool can be a lucrative and rewarding career.  However, like any other career there comes a time when owning a preschool business is no longer the right fit.  Before you get to that point, I suggest you consider your exit strategy and start the process of determining a value for your business.

If you are the owner and operator of your business, a solid exit strategy is even more important as the families that come to your school have most likely become attached to you personally.

There are several things to consider when placing a value on a preschool You not only need to take into consideration the business's assets that will be sold along with the company but also the preschool's reputation in the community.  Businesses that are regarded as leading preschools in their area can go for premium prices so know what you have so a potential buyer can't take advantage of your lack of knowledge.

Consider What Is Included In The Sale

The first step in determining a value for your preschool is to decide what is going to be included in the sale.  Are you selling the business and the customers that come along with it?  Or are closing down and liquidating assets?  Is the facility that the preschool operates out of part of the sale?  As I am sure you know setting up a preschool and making it meet state requirements can be an expensive task so if you are selling your facility along with the business, be sure you are placing a value on the business itself, the property and everything in between.

Other factors to take into consideration include your competition, your staff and other parts of your business that may set you apart from another preschool business for sale.  For example, if you have a unique curriculum or a program that has landed you an accreditation by a governing party in your state; you will be able to value your business higher than a competitor without these accolades.  As you are thinking through things like this also consider any higher education you've provided your staff including additional health and safety training courses.    

Find A Business Broker, Preschool Consultant, Or Specialty Advisor

Once you assess what you have to offer, I suggest you begin the process of finding a business broker to work with.  Not only will they help you determine a fair valuation but they will also help you in the next phase of the sales process when the business actually goes to market.  An experienced business broker will have a good handle on your market and be able to help you establish a fair price that will be attractive to buyers yet beneficial for you.

Find The Right Buyer

Understand that the preschool business is not for every buyer.  Some buyers may start the process thinking that they want to own a preschool but once they dig in a little deeper they realize it's just not for them.  It takes a very patient individual that truly loves children to own a preschool, especially if they are going to be the owner/operator.

Along with being a good fit for the job, a buyer that has had exposure to the industry will appreciate the importance of a good reputation in this industry.  They will also value things like a clean, well-maintained facility and an educated staff.  Not only will finding the right buyer ensure your business succeeds once they take over but it will also set you up to receive a fair price as they will appreciate the efforts you've put forth to separate your preschool from its competitors.

Industry Outlook

Parents are more focused than ever on their children's education.  Each year, parents spend thousands of dollars to put their kids in the best preschools.  Many parents believe that a good education begins at the preschool level and President Obama agrees.  In the past year, President Obama has suggested that in the future preschool may be mandatory and/or provided to all children as a means of better preparing them for school.

As an owner looking to sell their preschool, this is great news for you and something you should definitely be pointing out to potential buyers if they don't already know about it.  While nothing has been passed or set in stone that indicates this will actually happen, the possibility is there.  For your business, this shows that there is potential for growth in the future.

More Information / Resources On Buying And Selling California Preschools:

All California PreSchools For Sale & Wanted To Buy Requests:

http://www.bizben.com/business-for-sale/daycare-centers-preschools-for-sale-type-california-ca.php

All Business Brokers & Agents Who Assist With Buying And Selling Preschools:

http://www.bizben.com/business-brokers/daycare-centers-preschools-business-brokers.php

Preschool Resources To Asssist You With Consulting, Financing, Due Diligence:

http://www.bizben.com/business-resources/daycare-centers-preschools-resources-california-ca.php

More Articles & Blog Posts Regarding Buying And Selling A Preschool:

http://www.bizben.com/blog/daycare-centers-preschools-blog-posts.php

One last thing . . .

Keep in touch - let me know if you need any assistance with either buying, searching for, or sell a California preschool - I will point you in the right direction. If you have a specific question about buying and selling a preschool contact me and I will answer it for you.

About The Author:  Peter Siegel, MBA is the Founder of BizBen.com and the Director of the BizBen Network. If you are searching to buy a California preschool make sure you are a part of the BizBen ProBuy Program and get the word out about your search criteria to all business brokers and agents throughout California that sell preschools.  If you have a question about the BizBen Network or BizBen.com's ProBuy or ProSell Programs please feel free to phone Peter Siegel direct at: 866-270-6278.


Categories: BizBen Blog Contributor, Business Valuation Issues, Buying A Business, How To Buy A Business, How To Sell A Business, Selling A Business



  Helpful Resources To Assist In Selling And Buying California Businesses
William Park, Business Broker - Southern California

Highest Volume Broker in California, Simply Check our HUNDREDS of Listings! Over 25 Associates, Speaking Dozen Languages, Helping Buyers and Sellers of Small Business since 1982, Centrally Located between Los Angeles and Orange Counties, while Riverside & San Bernardino Counties are Very Accessible.

AJ Rana - Business Broker, San Francisco Bay Area

Professionals who understand the importance of world class business brokerage service and the value it can create. Specializing in assisting sellers and buyers with retail stores, restaurants, hospitality & lodging, manufacturing operations, distribution companies, e-commerce and service businesses.

Mark Chatow, Esq.: Legal Services For Buying, Selling Businesses

Mark has a broad range of small business purchase & sale experience from analyzing potential acquisition targets to successfully guiding buyers and sellers through the purchase & sale of small businesses. Mark can assist with contracts, negotiations, legal matters, etc. Reach Mark at 949-478-8393.

Chris Seaman, Business Broker - San Diego County Area

Founded in 1994, First Choice Business Brokers has accelerated to become one of the most successful Business Sales Organizations in the world. Our team of agents have gone through extensive training to become experts in the field of business brokerage. Call Chris at 858-578-4111 for more info.

Brad Steinberg, Broker - Laundromat Specialists

PWS is the leading laundromat broker in California. Since 1968 PWS has brokered over 2,500 laundromat sales. With over 90 employees dedicated to the coin laundry industry, PWS has 18 licensed agents, a 3 person in-house finance department, 10 service technicians and a 20 person parts department.

Lee Petsas, Business Broker - Orange, San Diego Counties, Inland Empire

UBI Business Brokers has been successfully selling businesses in Southern California since 1965. Our Agents have over 100 years of experience in selling small to medium size businesses throughout Southern California. We service Orange County, Inland Empire, San Diego. Phone Lee at 714-363-0440.

Helen Yoo: Escrow & Bulk Sale Services - Southern California

New Century Escrow, Inc. is a fully licensed & bonded independent escrow company. Over 20 years combined experience in handling bulk escrow transactions. Multi-lingual staff that speaks your language, including Korean, Chinese, Vietnamese. Call Helen Yoo direct at 626-890-1151.

Janet Carrera - Escrow & Bulk Sale Services - SF Bay Area

Redwood Escrow Services, Inc. is a full service, licensed independent escrow company. We are EAFC Fidelity bonded, fully insured & licensed with the Department of Corporations. Committed to offering our clients the most comprehensive variety of escrow services available. Phone Janet at 510-247-0741.


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