Approached by a Buyer? 5 Things to Consider First
Has your education business recently been approached by someone interested in buying or growing your brand? Many buyers believe the industry is ripe for innovation and investment — and the competition in today’s selling environment means there are plenty of opportunities for owners who are ready to exit.
Interested in confidentially exploring selling opportunities? HINGE Early Education Advisors can help.
If you are considering selling your early education business and/or real estate in the near future, keep the following in mind before signing any dotted lines.
1. A competitive process will always get you the highest value.
In fact, at HINGE Early Education Advisors, our clients receive, on average, a 21% higher value running our competitive process than when they sell directly to a buyer — often exceeding their initial pricing objectives.
2. Today’s transaction process is even more demanding and complicated.
Before beginning your transaction, make sure you have a team of experienced and industry-seasoned consultants including a CPA, an attorney, and a transaction management team.
3. If confidentiality is a concern, be sure your advisor is well-equipped to protect you.
This includes having legal agreements in place, strategic guidance to steer staff and parent announcements, and experience navigating a secure process from start to finish.
4. Partner with advisors who have deep relationships with industry buyers and who will include you in the buyer selection process.
An experienced transaction advisor will be able to coach you on the idiosyncrasies of each buyer that you won’t always find on paper, including their growth objectives, their culture, and their processes.
5. Work with people you trust.
Selling your early education business can be an emotional journey. It helps to have a team of people behind you that you can count on and who truly care about the outcome for you and your school community. Our commitment to doing what’s best for our selling clients is what has enabled HINGE to successfully close more childcare transactions than anyone else. Plus, we provide seller-friendly contracts with no up-front fees or long-term tails on commissions, meaning we don’t get paid until you do.
