Financial benchmarking measures a child care business’s financial performance by comparing it to the financial performances of similar child care businesses, industry standards or best practices. The goal is to identify areas where the business is performing well and areas that may need improvement. By understanding these benchmarks, child care business owners can make informed…
Having worked as a child care business mergers and acquisitions advisor since 1995, I know that when a child care owner contacts me, they are often interested in selling their child care business. One of the primary things they would like to know is its value. Knowing the value is key when considering the sale…
“If You Hide the Money Too Well, Nobody Will Be Able to Find It.” When I began my business brokerage career in 1995, it was common to find that business owners were not reporting all of their business revenues. In addition, they were also incurring numerous personal expenses (cars, house payments, country club memberships, personal…
At a minimum, you should receive monthly (not quarterly) financial reports – Profit and Loss Statement and Balance Sheet. These reports should be timely – you should receive both reports no later than the 10th of the following month. Old financial statements – say several months old – are useless when providing data that you,…
Childcare businesses, just like people, can be described as either healthy, a little sick, anemic, or gravely ill. When sick, humans often need a consultation with a doctor, the right medicine, and often a change in diet, lifestyle, habits, or a change from things that lead to their illness. We do not often think of…
