Share This Info:  

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: 925-785-3118.

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
Chris Seaman, Business Broker: Southern California

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.

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.

Ryan Clark, Business Broker: Southern California

The Veld Group provides a refreshing approach to Business Brokerage, Mergers & Acquisitions and Business Consulting and Valuations. From Your Street to Wall Street, we cater to Main Street Businesses as well as more complex Strategic Firms and Start-Ups. Phone Ryan, Business Broker at 310-652-8353.

Harry Sidhu, CBB, Broker: SF Bay Area, Central Valley, SAC Region

Assisting both sellers and buyers of businesses - dealing mainly with Liquor Stores, Grocery Markets, Gas Stations, Smoke Shops, Restaurant Related, Retail Related, Service Related. Serving SF Bay Area, North Bay, Sacramento area. Call Harry Sidhu, CBB for assistance at 510-366-6130.

Elizabeth McGovern: Escrow Services - San Francisco Bay Area

McGovern Escrow Services, Inc., is a leading independent escrow company. We are a trusted partner with our clients, assisting them through the tangled bulk sale & liquor license transfer process. We provide attentive, quality & innovative customer service. Phone Elizabeth McGovern at 415-735-3645.

Christina Lazuric CBI CBB, Business Broker: Orange County

Premier Brokerage for Selling Orange County Service Based Businesses since 2005! C.B.B. provides a step by step approach to Business Brokerage, Mergers & Acquisitions, Business Consulting and Valuations. We work on creating the best possible presentation for your business! Call today 949-257-7823.

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.

Michael Davidson, Business Broker - Southern California

Los Angeles Business Broker providing M&A quality services for Small Business Owners. We leverage our technology and expertise to Simplify & Expedite the Business Sales Process. Matching the right buyer with the right business is how we define success.


  Related Articles, Events, Blog Posts, Discussions, Videos, Interviews
How To Value A Pre School: A Primer For All Pre School Sellers And Buyers

Pre schools that are regarded as leading schools in their area can go for premium prices so know what you have so a buyer's can't take advantage of your lack of knowledge. Peter Siegel, MBA (Pre School Purchase Financing Expert & BizBen ProBuy, ProSell Director at 925-785-3118) discusses this topic.

How Many Listings Is Too Many For One Broker To Handle? Is It 5? 10? 20?

Peter Siegel, MBA in this Vlog/Podcast discusses how many listings is too many for one business broker to handle at one time. Is it 5 is it 20? I recently had a coaching call with one of my BizBen broker clients who asked that question this week. There are many factors that go into the answer.

Uncover Hidden Problems In Due Diligence When You Buy A Small Business

Most everyone who's decided to buy a small business in California knows the importance of due diligence. That involves close examination of a business prior to removing contingencies. But not everyone knows how to uncover problems that are not obvious. Here are five of the most common hidden issues.

Sellers Ask: How Long Should I Wait For The Buyer To Do Their Due Diligence?

Business sellers & buyers ask the question in the buying process-how long should I ask for due-diligence when buying a small business? The answer really depends on several factors. They include: type of business, demand for the business, complexity of the business. Advisors weigh in on this topic.

Find Out Why 80% Of California Business Buyers Never Find And Buy A Business

First the dreaded statistic: 80% of all California business buyers looking to buy a small to mid-sized business in California never end up doing so! Peter Siegel, MBA BizBen Founder And Director at 925-785-3118 covers successful tactics all business buyers of small businesses should utilize.

Tips When Using Escrow Bulk Sale Services When Buying Or Selling A Business

The final part of the business for sale transaction is the escrow and bulk sale process by Peter Siegel, MBA (Business Purchase Financing Expert, ProBuy & ProSell Program Advisor) answers questions and describes the escrow and bulk sale process. Peter can be reached direct at 925-785-3118.

5 Myths About Selling A California Business: Best Tips For Sellers & Brokers

Peter Siegel, MBA (at 925-785-3118) - BizBen Director discusses myths associated with the process of selling a business and some of them can actually cause deals to fall through. Don't let your sale be comprised, be aware of these common misconceptions related to the process of selling a business.

How Many Months Should I List My Business With A Business Broker?

It's important to remember that selling a business takes time. Unlike selling a house, which can be sold relatively fast, a business can take up to six months to a year to sell. Joe Ranieri (Orange County Business Broker) at 714-292-5448 explores this topic from a Business Brokers perspective.


Escrow Services Diane Boudreau-Tschetter
Willard Michlin Due Diligence Services
Tim Cunha Business Brokerage
Rob Harman Business Broker SF Bay Area
Facebook
Twitter
Linkedin
Vlogs and Podcasts
BizBen ProSell Program
Advertise On BizBen
California Educational Events Buying And Selling Businesses
Instant Email Alerts On BizBen
New Postings Reports On BizBen Sign Up

BizBen - Where California Deals Get Done! 888-212-4747
7172 Regional Street #364 · Dublin, CA. 94568
BizBen · Copyright © 1994 - 2019, All Rights Reserved



Clost Login


Please confirm your registration by clicking the link we've sent to .

If you can't see it, please check your junk mail folder.

If you have any problems registering, or need assistance with your new BizBen User Account please phone BizBen Customer Support at 888-212-4747.



First Name:*
Last Name:*
Email Address:*
Confirm Email:*
Create Password:*
Confirm Password:*
Phone:
(   
 


You Are A:
Individual
 
Intermediary
 

Email Address:
Password:
 

500 New & Refreshed Detailed Postings Daily
Over 2500 Resources Available On BizBen
Since 1994. Where California Deals Get Done!
How To Value A Pre School: A Primer For All Pre School Sellers And Buyer...
Read More News
What Factors Are Considered In Valuing A Small Business? Advisors Weigh ...
Read More News