The Biggest Mistakes Multi-Site ECE Business Owners Make When Selling Their Schools
Selling a multi-site childcare business is one of the most significant financial decisions you’ll make as an owner, and one that requires expert guidance to get right. Over the years, HINGE Early Education Advisors has helped hundreds of multi-site owners sell their schools for maximum value, with complete confidentiality and seamless transitions to new ownership.
Too often, though, ECE owners underestimate the complexity of the transaction process. Some call us after an initial deal has fallen apart. Others reach out mid-negotiation, scrambling to address a valuation gap or stalled due diligence. These stories all have one thing in common: they started with good intentions and hard work, but without the right guidance. If you’re beginning to think about your own exit, take these lessons to heart. Here’s what not to do when selling an ECE business and how to avoid the most common, costly mistakes.
What Not to Do When Selling an ECE Business
1. Fly Blind Without Reliable Reporting Systems
The ability to quickly produce accurate reports, like financial statements, enrollment trends, staffing ratios, and real estate data, can significantly impact your transaction timeline. From the initial valuation to marketing, due diligence, and quality of earnings, reliable reporting directly affects how efficiently you can move from valuation to closing.
By implementing a strong reporting system well before going to market, HINGE Advisors can review your reporting structure during the pre-sale phase, identify gaps, and ensure your data is buyer-ready long before it’s shared.
2. Wait Too Long to Begin Succession Planning
At HINGE, we believe succession planning should begin the day you open your doors. The most successful transactions come from owners who think proactively, not reactively, about their eventual exit. Those who wait until they’re ready to retire or move on often lose valuable time to prepare their schools for sale and strengthen their business performance to maximize value before going to market.
3. Ignore Real Estate Strategy
Whether you sell your school properties with the business or separately, your real estate strategy is critical to the overall transaction. Buyers closely evaluate long-term lease stability, property condition, and flexibility in site control — all factors that influence both value and deal structure. HINGE’s in-house financial analysts will assess the value of your business and real estate assets to help you determine the most advantageous deal structure for your transaction, maximizing after-tax proceeds while keeping the opportunity attractive to top buyers.
4. Use an Inexperienced Attorney
Attorneys play a crucial role in negotiating the Letter of Intent (LOI), structuring the sale agreements, and finalizing closing documents. However, a family or estate attorney typically lacks the specialized experience required for a transaction of this complexity. HINGE recommends engaging with an experienced business transaction attorney, especially one familiar with childcare business and real estate sales. Our team will work closely with your lawyer to protect your interests, navigate licensing challenges, and help keep the deal moving forward to a successful closing.
5. Skip a Competitive Process
One of the biggest mistakes when selling an ECE business? Taking the first offer that comes along. Without competition, there’s no leverage and buyers take advantage of that. A structured, competitive process almost always results in a higher sale price and stronger terms. Buyers often have internal acquisition teams that evaluate each deal’s fit and price, and when multiple buyers are at the table, those teams sharpen their pencils.
In fact, HINGE has found that sellers who engage in a competitive process typically achieve a 21% higher selling price. And because our team maintains relationships with hundreds of qualified buyers, including private equity groups, strategic acquirers, and regional operators, we’re the best in the industry to help you gain maximum value for your business.
6. Try to Manage the Sale Process Alone
With more than 300 years of combined early education transaction experience, the HINGE Advisors team has seen it all — including how easily deals can go off track. Without expert representation, owners who attempt to sell on their own risk stalled negotiations, reduced valuations, and unfavorable terms simply because they don’t fully understand how buyers think or operate.
HINGE anticipates buyer needs, manages due diligence, and navigates negotiations with the goal of protecting our clients’ interests and securing the strongest outcome possible.
Ready to Sell Your Schools?
Selling a childcare business isn’t as easy as 1-2-3. There are dozens of potential missteps, but with HINGE Advisors, you don’t have to navigate them alone. From valuation to closing, we’re here to help you plan, position, and sell your schools with confidence. Get in touch with our team of early education transaction experts 864-664-3877 or contact us online.