3-Site Childcare Provider Sold in Minneapolis
HINGE Advisors is honored to have led the sale of Ladybug Child Care, an outstanding early education provider serving the suburbs of Minneapolis-St. Paul for more than 40 years. After decades of growth and service to the local community, the family owners elected to transition their three schools at an opportune time.
“There are many markets across the country that owners may be surprised to learn are highly attractive to buyers right now,” says HINGE Transaction Advisor Mike Pepper. “When strong market conditions align with thoughtful timing on the seller’s side, exceptional outcomes follow.”
No Pressure, Better Outcomes
Ladybug Child Care Founder Connie Kraus and her daughter, CEO Michelle Kraus, were part of HINGE’s ECE owner community long before a sale was ever under consideration. After being introduced to Kathy Ligon through the National Child Care Association, they engaged HINGE to identify a suitable site for their third purpose-built campus in 2017 and for ongoing insights into best practices in the business of early education.
“We don’t believe in rushing ECE owners to sell. We believe in empowering them to strengthen their business and real estate so they can maximize value whenever they are ready to exit,” says Mike.
“Connie and Michelle’s schools are the epitome of high quality, and we’re extremely proud of the long-term relationship we’ve enjoyed together,” he notes.
Understanding Value in Today’s ECE Market
To get a clear picture of their school’s value and begin planning for a future transition, Connie and Michelle attended HINGE’s VALUE Workshop for ECE Owners. There, they received a custom ECE valuation of their business and real estate based on expert calculations of their go-forward EBITDA and a thorough understanding of buyer objectives in today’s market.
This valuation, combined with on-site advisory support and expert presentations on key selling considerations, helped the Krauses better understand their strategic options and timing.
“After careful consideration, our family decided we were at an appropriate juncture to transition ownership and position everyone for continued success,” explains Michelle. “We initially thought about selling independently, but quickly realized that partnering with HINGE would pay off in several ways."
Results Driven by a Competitive Process
HINGE’s multi-disciplinary team of ECE specialists — including Transaction Advisor Mike Pepper, Financial Analyst Marnie Rhen, Diligence Manager Carrie Pergerson, and Transaction Marketing Director Annie Nicholson — launched a confidential, highly targeted marketing process designed to highlight Ladybug Child Care’s strong reputation, well-established operations, distinctive programming, and long-tenured staff.
By engaging a curated group of qualified buyers and structuring a competitive environment, HINGE generated multiple strong offers and created powerful leverage during negotiations. HINGE’s process typically results in 21% higher selling proceeds compared to dealing with a single buyer.
ECE Transaction Management Made Easy
HINGE also managed the transaction process from end-to-end on behalf of the sellers, guiding the owners through complex diligence processes, sensitive family dynamics, and ensuring confidentiality, enabling them to focus on maintaining strong operational performance across all three locations.
“HINGE is worth its weight in gold,” shares Michelle. “They saved us so much time, kept us on track, and ultimately delivered an outcome we could not have achieved on our own.”
Is the Time Right to Sell Your Childcare?
HINGE works with owners of premium childcare centers across the U.S. to build stronger schools and create powerful exits. If you’re considering whether now may be the right time to sell your childcare business and real estate — or simply want a clearer understanding of your school’s value in today’s market — we are here to support you.