Buying an Existing Centre
If you are in the market for an existing centre there are 2 types of childcare centres you can buy. Freehold or Leasehold.
Freehold is where you purchase the property and the business. Leasehold is where you just purchase the business and sign a lease to pay rent to the Landlord. Obviously Leasehold Childcare Centres are cheaper to purchase and generally have a higher return on investment in the short-tem however Freehold Centres have the added advantage of the capital growth of the property overtime.
If you have no or little childcare experience you can come to our centres for a 1 day course to see what is involved in running a service. This is a hands on experience that will be invaluable to set you down the path to successfully buying and running a childcare centre. Whether you purchase a Leasehold or a Freehold childcare centre we can help with the following processes:
Step 1 - Area Selection
You have heard the saying in Real Estate, LOCATION, LOCATION, LOCATION. It is exactly the same in the child care industry. In fact we believe it is the number one criteria to being successful. We can provide the following services
Step 2 - Childcare centre inspection and review of financials
Once a centre is available for sale we can join you on an initial inspection of the centre. We can also look over the financials to benchmark them against other centres. We can complete a SWOT analysis on the business to ensure you are getting a sound investment at the right price. If you are buying a Leasehold we really need to focus on the Lease documentation.
Step 3 - Help negotiate the price and getting finance
Purchasing a childcare centre is like purchasing any other business, property, car etc. The best way to make money is to purchase it at below the market value. It is extremely important to get the highest return on your money as possible especially if you have to borrow money to purchase the business. The market currently is a buyers market due to the ABC collapse, however childcare centres in key positions will always be valuable. Even if you have found a great deal you still need to get the money. We can point you in the right direction.
Step 4 - Insurance, Licencing and registering the service with appropriate government bodies.
The child care industry is highly regulated and in order for you to own and operate a centre you must apply for a licence and register the business with certain government agencies so you can operate the service. We can help with all registrations and also find you a competitive insurance policy.
Step 5 - Running your new service
The current owners will help you to run the new service. The most import part of the hand over is your introduction to the staff and the parents of the centre. We are here to help you put the right foot forward. It is at this time we can come in and look at how the service is running and suggest ways to improve it. Just because you bought a business doesn't mean the business is running well. In fact the best way to extract value from your business is to improve the way it is run. In childcare, like most businesses, you can only become more profitable by increasing income or reducing expenses. We can help with both.