Capitalization Rates and Child Care Real Estate Value

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…

Selling a Childcare Business – Owner Financing vs. Earn Outs

In recent years I have received an increasing number of calls (more than in years past) from childcare business owners about selling their childcare business and owner financing. However, the involvement of owner financing in selling a childcare business or any small business is common. In transferring small, medium, and large childcare businesses, the seller…

2023 Child Care Industry Mergers and Acquisitions Outlook

Around this time of year, I am often asked about the mergers and acquisitions outlook for the childcare industry.  Although I wish I had a crystal ball, I do not. However, I will share my thoughts about the childcare mergers and acquisition trends we will see in 2023. To put things in perspective, we must…

Endless Child Care Buyer Calls, Emails, and Letters

How many calls, emails, and letters have you received this week from people interested in buying your child care business? If you are like most child care business owners, particularly a large child care business owner, you have probably been contacted by at least a dozen or more people this week alone. Having specialized in…