Frequently Asked Questions
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The basis of the valuation is determined by the EBITDA (or cash flow). This is carefully analyzed and adjusted to create the strongest financial picture for the business. HINGE’s methodology for valuation increases value and is known and respected by our buyers.
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The average length of a selling process is approximately 3-6 months depending on the individual buyer and seller response time. Due to our team’s experience and long-term relationship with multiple buyers, HINGE can advise sellers on the average timeline for each buyer.
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HINGE’s extensive buyer list allows sellers to pick and choose who their schools will be marketed to. In addition, all potential buyers must execute legal confidentiality agreements before the selling business is revealed. During the process, HINGE manages all tours and communications in a controlled manner to promote privacy and parents and staff are only notified after the transaction is certain to close.
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For sellers who also own their real estate, you have the option to maintain and lease to the new business owner or sell your real estate outright. HINGE will provide a clear financial analysis of both options so you can make an informed decision.
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The team at HINGE understands that a strong culture fit is as important as monetary value for childcare business owners when selling their school(s). HINGE’s extensive experience in post-closing integration allows us to work with sellers and buyers to ensure a positive transition for both parties.
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The majority of HINGE’s buyers pay all cash at closing with an occasional structured payment for companies that are ramping.
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Majority of sellers choose to exit the day-to-day operations after closing. This allows for their teams to form new relationships with the new owners and for the seller to begin their new life.
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Our fees are calculated as a percentage of the value gained at closing for our sellers and customized based on the size of the transaction.
Have another question that wasn’t answer above?
Contact our team to learn about how we can help you grow or sell your early education business.