Seven things to consider when selling your day nursery
Our Head of Brokerage - Childcare & Education, Nick Brown, shares his seven top things to consider if you are selling your day nursery setting.
Deciding to sell your day nursery or educational business can be a little daunting. No one size fits all and, with close to 24 years in the sector, I know that each sale can bring its own nuances and challenges.
However, considering these seven things before you sell will undoubtedly stand you in good stead!
- Prepare, prepare, prepare
Buyers will want a clear picture or path of the nursery's financial health in the past and what the future may hold, so ensure you have detailed financial records, and up-to-date accounts and management numbers. Robust financial information and forecasts are a must if you are looking for a premium price.
Are you selling on a freehold basis, long leasehold basis, a standard lease, a license, is there is ground rent or are there any property covenants…? Ensuring that you have a good feel for the legal tenure of what you are selling is always important and will help avoid any unnecessary delays in the sale process.
All operational policies and procedures should be well-documented - this will help create a smooth transition of ownership. Throughout a nursery’s life cycle, it will likely face some challenges such as potential Ofsted issues, parental complaints etc. but it’s important to remember that a buyer will focus less on what has happened and more on what was done to remedy the issue and stop it happening again.
... For the full article in Nursery World, click here.
