Top Things to Consider When Acquiring a New School

Acquiring schools to grow your early education brand can be a strategic move to expand your business and increase its overall value. However, it's essential to approach this process carefully and thoughtfully. Here are the top things to consider when looking to acquire a new school.

Culture Consistency

Thoughtfully consider the current operations, the team, and the existing culture of the school you want to acquire, and be sure you can continue and improve upon the existing situation without stressing the team and causing too much disruption initially.

1. Curriculum and Educational Philosophy
   Take time to understand the curriculum and educational philosophy of the school, and ensure it aligns with your brand's values and standards. Determine if any changes or improvements are needed to align the acquired schools with your brand's approach to child care and education.

2. Staffing and Talent
   Evaluate the quality and qualifications of the existing staff, including teachers, administrators, and support personnel, and consider how the acquisition might impact current employees and their job security.

3. Reputation and Brand Image
   Research the reputation of the school within the community. Are they well-respected and trusted by parents? It’s also important to investigate any past incidents or negative publicity that could affect the brand's overall image.

4. Long-Term Strategy
   Make sure the acquisition is in alignment with your long-term growth strategy and goals for your childcare brand. Consider how this acquisition fits into your overall expansion plans.

Do Your Due Diligence

A thorough due diligence process will confirm that all financial, legal, licensing, market, and facility information provided is complete and correct.  It will also help eliminate any surprises after the transition and will create a calm, controllable environment where you can focus on people and operations.

1.  Financial Due Diligence
   Conduct a thorough financial analysis of the school you're interested in by reviewing its financial statements, including revenue, expenses, and profit margins. It’s also important to assess any outstanding debts, liabilities, or contractual obligations.

2. Licensing and Compliance
   Ensure that the schools you acquire are properly licensed and compliant with all local, state, and federal regulations for childcare facilities. Check for any past or ongoing compliance issues, including health and safety violations, and understand the requirements for a new license to be issued upon closing.

3. Legal and Regulatory Considerations
   Consult with legal experts to navigate the acquisition process, including contract negotiations, permits, and legal documentation.

4. Facility and Equipment
   Assess the condition of the facilities, including the building, playgrounds, classrooms, and safety features, and consider any necessary renovations or upgrades and their associated costs.

5. Location and Market Analysis
   Evaluate the location of the schools you're considering. Are they in areas with a high demand for childcare services? How many other childcare providers are already in the are, and what is their reputation? What’s the tuition rate tolerance of families in the area? Consider all demographic factors including the population of children in the area and the income levels of parents.

Make a Plan

Developing a detailed transition plan that outlines how you will integrate the acquired schools into your childcare brand is incredibly important to the overall success of your acquisition — focusing on not disrupting services to children and families and creating a sense of inclusion for staff regarding impending changes over a period of time.

1. Transition Plan
   Communicating the transition plan to staff, parents, and stakeholders will help ensure a smooth changeover. Make sure to focus on small changes initially and to include stakeholders in go-forward decisions for their buy-in. Develop a strategy that builds positive relationships with parents and make an effort to become an active member of the community.

2. Support Teachers
   Focus on making the work environment for teachers better than before by increasing their benefits and resources. You should also be available to answer questions and make connections to build trust and good will. Investing in them will encourage them to invest in you and share positive communications with parents about the transition process.

Acquiring schools to expand your childcare brand can be a complex process, so it's essential to conduct thorough due diligence and seek professional advice when needed. If you’re interested in growing your brand of schools, don’t hesitate to get in touch with the HINGE Advisors team at info@hingeadvisors.com.