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.
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:
All Business Brokers & Agents Who Assist With Buying And Selling Preschools:
Preschool Resources To Asssist You With Consulting, Financing, Due Diligence:
More Articles & Blog Posts Regarding Buying And Selling A Preschool:
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.
|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.
|Joe Sandbank, Esq. - Legal Services
I have provided legal counsel to business buyers, sellers and brokers for over 17 years. With prior experience as a business broker and SBA loan officer, Joe brings both a practical and legal approach to all aspects of the business acquisition process.
|Christina Lazuric, CBI, Business Broker - Orange County
California's 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!
|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.
|Rob Hartman: Business Broker, SF Bay Area
Business brokerage services in the SF Bay Area. I bring skill, integrity and energy to all of my clients and our projects. I'm accustomed to working with a wide variety of clients and their businesses; large or small, simple or highly complex. Get a free consultation by phoning 650-279-3097.
|Ken Oppeltz, Business Broker, San Diego County
We have been San Diegos premier business broker and merger and acquisition specialist since 1989. Staffed with some of the best-qualified and most experienced business brokers in the industry, our professionals have all earned or are candidates for the Certified Business Intermediary (CBI).
|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.
|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.
|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 866-270-6278) discusses this topic.
|5 Myths About Selling A California Business: Best Tips For Sellers & Brokers
Peter Siegel, MBA (at 866-270-6278) - 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.
|Selling Your Business To One Of Your Employees - A Good Idea? Pros And Con
After investing years of time and talent into a company, many small business owners want to feel like they are leaving their business in good hands and for that reason, some sellers opt to sell their business to an employee. Peter Siegel, MBA talks about the pros and cons to taking this route.
|Before Buying A California Business, 10 Questions You Should Ask Yourself
Before buying a business, all serious business buyers should ask themselves some key questions about possible buying a small California business, franchise, or opportunity - from Peter Siegel, MBA (Business Purchase Financing Expert, ProBuy & ProSell Program Advisor with BizBen) at 866-270-6278.
|Buy A Business Or Start From Scratch? 5 Key Differences For Business Buyers
Some buyers believe it's better to start a business from scratch rather than buy an existing enterprise. While this may be good advice in some cases, usually it's not the best strategy. Here are five tips to help a buyer make the right decision from from Peter Siegel, MBA (BizBen Director).
|Unreported Income: Should Sellers Disclose Unreported Cash To Buyers?
Should owners who offer a business for sale reveal to prospective buyers any income that is not recorded in the books? This is a controversial topic with arguments both for and against. Most business sales intermediaries believe if you don't pay tax on it, you can't claim it. Some sellers disagree.
|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.
|Thinking Of Selling My Business: What Factors Create Value And Drive Price?
There are a lot of misconceptions about what enhances the value of a business. The following factors in this Discussion Post on BizBen are aspects of a business that really drives its value and pricing. Business owners thinking of selling should check these out these factors before selling.
|See All News, Tips And Events|