The daycare business market for sale is expected to grow significantly. With the global child-care services industry estimated to reach $520 Billion, now could be a good time to transition into or out of this dynamic sector. The timing is perfect for anyone who’s considering selling their existing daycare or buying one.
There is a growing market of buyers for those who are looking to sell their business or start a new one. A daycare center can be purchased by those who want to start a business, but do not wish to do so from scratch.
This guide will provide you with essential tips and insights that will help you navigate through the challenges and opportunities in the rapidly growing daycare market.
Selling a Daycare Business? Tips for Sellers
Organise Your Finances
Clarity and organization are essential when preparing to sell a daycare business. Your earnings and expenses will be important to any potential buyer.
You may already have this information at your fingertips, but it is often necessary to organize the data in a way that makes sense to people outside of your company. Consider consulting a financial analyst or bookkeeper to achieve this.
They can help you align your financial statements, your balance sheets and other financial documents to make your business more appealing and understandable for prospective buyers.
Clarify Your Enrollment Numbers
Your customer base is a key factor that buyers will consider. The easiest way to show this is by presenting your full-time student numbers. This number, which includes both full-time and partial-time students, is a good indicator of the clientele that your business has.
Molly Hanson, Business Broker at Baystate Business Brokers, highlights the importance this metric. She noted in an interview Small Business Trends, that although not all centers track this, full-time enrolment is a critical factor for buyers.
Upgrade Your Facility
The physical appearance of the facility you are selling can have a significant impact on a potential buyer’s initial impression. It is especially important if you own the property.
A simple enhancement, like a new coat of paint, will greatly enhance the appeal of your daycare center. Hanson suggests taking advantage of off-peak periods such as holidays or long weekends to make these improvements, particularly if you are selling your daycare facility along with real estate.
