If you are presently looking to sell your childcare business in NSW, you are selling at the right time. The supply of childcare businesses is limited, and the demand is extremely high. However, you will want to maximise this large and very important opportunity, so there are few things that you should be aware of.
There are many opportunities at present within the NSW childcare business market. In June 2018, the Australian Government announced that it is extending the childcare subsidy to children as young as three years. This has already increased the demand for childcare. The other big story you may have been hearing is the shortage in childcare placements. These and other factors are contributing to a strong market for selling a childcare business in NSW.
To understand the market, firstly we’ll put you in the shoes of the buyer of a childcare business in NSW. The buyer is looking for a childcare business that satisfies all their requirements and is local to where they live. However, there are not many childcare businesses going up for sale near them. The buyer can’t afford to start their own childcare business, because the upfront costs are high, so they are restricted to the limited businesses that are on offer. When you list your childcare business for sale, the buyer’s heart leaps – they have found what they are looking for… but so have many other buyers. It is very competitive and buyers are willing to pay a high price to get the business that they are looking for.
It is true that at present it is relatively easy to sell a childcare business. However, you should not rush the sale but instead, maximise the opportunity to sell at optimum market value.
As business brokers who have extensive experience in the childcare sector, ABBA Group can offer some tips that should improve the amount that you get from your business sale.
The first and most obvious tip is to avoid letting your customers hear about the sale. You don’t want customers to start switching to new childcare businesses before you sell. If this happens, then your prospective buyers will look at your accounting records and see a downturn in sales right before you plan to sell. This could turn prospective buyers off purchasing your business.
Next you need to invest in marketing your business for sale properly and ensuring in gets in front of the right buyers. Depending on your business, you should look at printed, online and network marketing channels. Also, get some advice on what will capture the attention of prospective buyers, such as an image of children playing in a well-kept childcare centre playground.
The most important aspect of your sale is the asking price. This figure should be the result of extensive research, market knowledge, market analysis and strategy. You need to consider what you think your business is worth and what you expect to get for it. Finally, talk to a business broker who has the expertise and experience and who can help maximise the sale of your business.
The sale of your childcare business is incredibly multi-faceted and complicated. Your area of expertise is in childcare, not in selling childcare businesses. You have a lot of insight into the childcare industry that will help the sales process, but you should consult a business broker who has insights into the strategy, economics and legalities of selling a childcare business. ABBA Group is Australia’s fastest growing business brokerage, founded by some of the most experienced brokers in the industry. We can provide the following benefits to you during the sale of your childcare business:
Talking to an expert from ABBA Group can be invaluable and will help you maximise the sale price of your childcare business. Our professionals have experience in the childcare sector and can advise on the best strategy for the sale of your business. To request your free consultation, please contact us below: