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The ABCs of Selling Your Childcare Centre

Selling your childcare business can be easy as pie! Just read this.

As you begin the process of readying your childcare centre for your exit, it’s important to take the time to get organised and put all your ducks in a row. Here are a few steps that are as easy as A-B-C to ensure the successful sale of your business.

Step A: Hire professional help.

Selling any business is stressful to some degree. That’s why it is highly recommended that you hire a commercial real estate broker, preferably one who has experience selling day care businesses, to make the process as smooth and profitable as possible.

It would also be beneficial to enlist the help of an attorney to draft a sales agreement and an accountant to make sure all your books are in order.

This isn’t the time to cut corners. Hiring professional help will most likely save you money in the long run and help secure a larger profit on the sale of your centre.

Step B: Sort out your financials.

A prospective buyer and their accountant will want to inspect the last three years of your business’s financial statements. This is a perfect time to enlist the help of your accountant to make sure that your statements are up to date and professionally prepared.

If you provide a clean financial record for your business, a buyer’s independent advisor can quickly and easily confirm the overall performance of your childcare centre.

Step C: Improve the condition of your facility and equipment.

Make sure everything is in optimum condition. Have a look around with the eyes of a prospective buyer. What would it look like to a critical new observer? The condition of your premises can say a lot about your profitability, so make cosmetic repairs where needed.

Step D: Tie up loose ends.

An area of great concern to a prospective purchaser is the state of your debtors. Based on your figures, the buyer will have to do his cash flow and working capital forecasting to justify the purchase.

A prospective buyer will be hesitant to purchase your centre if your accounts are not up to date, so now is the perfect time to make sure you are in good standing.

Step E: Take steps to ensure a smooth transfer of ownership.

For all prospective buyers, you want to present a facility that is a smooth-running machine. Here are a few suggestions to help set you on the right path:

  • Develop and document foolproof processes and routines for all operations.
  • Cultivate a dream team workforce that is highly skilled and satisfied. Give your employees reasons to stay loyal, using long-term incentives such as equity ownership or bonuses to reward profits.
  • Retrain your staff to ensure they are up to date on all tasks and policies. Prospective buyers will appreciate a highly trained and motivated staff that promises a smooth transfer of ownership with little to no staff turnover.
  • Maintain compliance with all applicable government agencies, keep clear and thorough records for the replacement owner, and prepare all your documentation, including tax returns and employee files.

It is essential that you do your best to convince your potential buyers that they’ll be able to take the reins and keep operations running smoothly. Paying attention to details like those listed above plus completing a thorough due diligence process will help guarantee a smoother transition.

Step F: Prequalify potential buyers.Sell Your Business

Ask your broker about requiring prospective buyers to sign a confidentiality agreement to protect the details of your childcare centre and to help secure a profitable sale. This is especially important if you have not publicly announced the sale of your business.

A confidentiality agreement will help keep things quiet until you’re ready to announce your intention to sell. Ask the broker for advice on how to prequalify serious buyers to save time and ensure a smooth transaction.

Gaining information about a prospective buyer's financial background allows you to see that he/she has the means to purchase your business, which is vital to know before you reveal any financial details about your business.

Step G: Close the deal.

Make sure that you are present to consult with serious buyers. You are the best source of knowledge about your childcare business. Give potential buyers firsthand information that will convince them that buying the centre is a smart business decision.

For instance, if you have an impressive and highly qualified staff in place, explain the added value that a well-trained group of childcare professionals bring to your already profitable business. 

Once you are ready to list your childcare centre for sale and say a final “sweet dreams and goodnight,” visit here and let us help you get started! Or extend your search to other potential businesses.

Faye Ferris

About the author

APAC Sales & Marketing Director for, the world’s most popular website for buying and selling businesses globally and attracting over 1.5 Million visitors each month. To contact Faye please email [email protected]


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