When it comes to selling a small business, the odds are often stacked against owners hoping for a successful transaction. Statistics show that only 20% to 30% of businesses (including all types of small businesses) that are offered for sale actually sell, leaving many owners disappointed and wondering where things went wrong. The primary reasons…
Child Care Mergers & Acquisitions Tip of the Day – Financial Management & Growing Profitable Gross Revenues Today’s tip focuses on why financial management is crucial for child care businesses, and why it’s not just about growing revenues, but about growing profitable revenues. Gross Revenue vs. Profitable Gross Revenue Many child care business buyers look…
For many child care business owners, a significant portion—often 50% to 90%—of their personal wealth is directly tied to the value of their child care business and associated real estate. This concentration of wealth in a single asset, particularly an illiquid one like a child care business, poses unique challenges and opportunities for long-term financial…
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…
The value of child care buildings and land (commercial real estate) often involves considering many things, including capitalization rates, often referred to simply as cap rates. In short, a cap rate reflects the risk associated with the property investment. It is also a projection/estimate of the rate of return the investment will provide. In commercial…
