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Negotiating A Day Care For Sale - How To Get The Best Terms


You've always dreamed of owning a day care, and now you've found the right day care for sale with an appealing location and the potential to be an excellent purchase. The due diligence you conducted showed that this day care for sale is a good buy with clean financials. The last step is to simply agree on the final purchase price and payment terms. Even this late in the process, a misstep could hurt your chances at running a successful business. Being saddled with bad terms or burning through too much capital to buy a day care for sale can ruin your opportunity before it even gets started.

Negotiating the final terms on a purchase of a day care for sale is an opportunity to start your business on the right foot by satisfying the needs of both the buyer and seller. Here's how to make sure to get the best deal.

Find The Seller's Key Point In The Deal

Sellers will have a number one priority in making a sale. It may be walking away from the deal with a specific amount of money in hand or securing seller financing to generate a stream of payments over a period of time. Whatever their top priority is, finding it and hitting it enables a buyer to get the terms that they want on a day care for sale.

There are a number of subtle ways to find out this priority, such as offering a deal and analyzing the counter offer. However, the direct approach is often the best. Don’t be afraid to come right out and ask the seller of a day care for sale what is more important to them, the down payment or the purchase price, as an example.

Getting What You Need Out Of The Deal

Once you identify what the seller really wants out of their day care for sale, you can focus on getting the terms that you need in order to be successful in your new business venture. Use the concept of concessions, meaning that when you give up something to satisfy the seller you should get something you need in return as the buyer. Some terms that you can negotiate on include:

• Reduced interest rate on the balance of the sale
• A grace period of 3 to 6 months on the first payment
• Principal only payments for the first year
• No penalties on early payments
• Non-compete agreements
• Lease terms

This give and take is the core of negotiation for a day care for sale. Once you satisfy the seller's primary need, you can get the best deal and terms for yourself as a buyer.

Looking to buy a day care business? See all day care businesses for sale in California - or sell a day care business and reach thousands of day care buyers. Also keep up to speed on the California day care market (with industry business brokers & experts) with upcoming BizBen Online Talk Shows & Webinars.

About The Author: Peter Siegel, MBA is the Founder of www.BizBen.com (established 1994 - 7000+ California businesses for sale, 200 new listings daily) and the Director of the BizBen Network (16,000 business buyers, 4,000 small business owners, 1,800 California business brokers & agents). Peter Siegel can be reached direct at 866-270-6278 to discuss selling a day care, financing a day care purchase, or buying a California day care service.


Categories: BizBen Blog Contributor, Buying A Business, How To Buy A Business



  Helpful Resources To Assist In Selling And Buying California Businesses
Ranvir S. Sandhu, Esq. - Legal Services For Buyers And Sellers

I've worked at top Bay Area law firms and have extensive experience with business entity formation, mergers, dissolutions, conversions, employment matters, including experience in reviewing and negotiating transactional documents such as leases and purchase agreements.

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.

Joanne Weber, Broker - Preschool Specialist - Southern California

The Ryan Craig Company is in its 35th year as the recognized expert in Southern California, dealing exclusively in the sale of preschools, Montessori schools, day care centers, and private schools. Our extensive list of references speaks for itself. Phone Joanne at 818-760-3684 for more info.

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.

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.

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!

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.

Rick Carlson, Business Broker - Southern California

You Will Never Feel Lost In The Shuffle. Many Brokers Simply Send Out An NDA And That's The End Of Communication. All Buyers Receive A Personal Meeting With An Ace Acquisition Specialist So They Can Recommend The Perfect Business For You. Phone Rick direct at 800-985-4939.


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