Get Planning! A Roadmap for Selling Your Childcare Business
Whether your sale is one year out or ten, the preparation that drives a strong exit is the same work that keeps a school financially healthy today. In this webinar, Kathy Ligon of HINGE Early Education Advisors draws on 40 years in the industry to lay out a practical roadmap for owners preparing to sell, and for operators in growth mode who want to understand the market they’re buying into.
Kathy returns again and again to the point that the cash flow a school generates sets both its business value and, for owners who hold their property, its real estate value. That puts five pillars at the center of any exit plan — occupancy, tuition rates, discounts, staff costs, and rent or mortgage. With enrollment now the industry’s biggest pain point, occupancy sits at the top of that list.
In this session, you’ll learn:
Why cash flow determines both business value, through a multiple, and real estate value, through a cap rate applied to the rent stream, and why getting the five financial pillars right puts a school about 95% of the way to financial health
How to build an enrollment system that holds up in today’s market, plus tuition strategies like pricing to your cost of care and pairing a smaller rate increase with eliminating outdated discounts
What today’s buyers look for, from individual investors and local operators to regional and national groups, search funders, private equity firms, and real estate investors, including which ones typically need financing and why a steady enrollment decline raises concern
Steps to take now to protect your value, such as building a team that can run the school without you, lining up a transaction advisor, keeping financial records clean and defendable, and moving long-term vendor contracts to year-to-year terms
Low-cost improvements that shape a buyer’s first impression, including curb appeal, a decluttered lobby, strong online reviews, and a ready explanation for any negative licensing reports
Learn from the Nation’s Leading Early Education Advisors
Whether you’re preparing for a future sale or looking to grow or strengthen your childcare, HINGE offers educational resources, webinars, and expert guidance for every stage of the journey.
Get the latest early education news and insights.
Check out our free ECE webinars.
Join our mailing list.
Having closed more than 350 early education transactions and created more than $1 billion in value for childcare sellers, HINGE has helped ECE owners maximize their business and real estate since 2003.
Have questions about selling your childcare business, leveraging your early education real estate, or preparing for a future transition? Contact us to speak with an experienced advisor.