In this article, we will discuss a few important steps involved in selling a childcare business in Australia.
1: Prepare your financial and operational information
Before your business broker starts securing suitable offers, ensure that the information requested is readily available including key CCMS data, financial statements, staffing information and lease agreements.
2: Determine the value of your business
To determine the value of your childcare business, you can work with a business broker who has experience in selling childcare businesses. They will help you evaluate your business’s financial health and market position, assess the current market demand, and identify any areas that may need improvement before the sale.
3: Market your business
Marketing your business effectively is essential to finding the right buyers. Your broker should have a strong network of potential buyers without having to publicly advertise your business. Discretion of the sale is paramount as you don’t want staff or parents knowing the centre is for sale.
4: Negotiate the sale
Once you have secured suitable offers, you will need to negotiate the terms, including the purchase price and any conditions that need to be met before the sale can be completed. It is important to be open to negotiations while ensuring that you are getting a great price for your business.
5: Finalise the sale
Once the terms of the sale have been agreed upon, you will need to finalise the sale. This includes drafting a purchase agreement and ensuring that all necessary license and permits are transferred to the new owner. It is important to work with legal and financial professionals to ensure that the sale is completed smoothly and legally (we can recommend several experienced companies).
