{"id":10609,"date":"2023-08-02T22:35:38","date_gmt":"2023-08-03T02:35:38","guid":{"rendered":"https:\/\/www.solutions4childcare.com\/index\/?p=10609"},"modified":"2026-02-07T01:49:50","modified_gmt":"2026-02-07T06:49:50","slug":"mistakes-child-care-business-buyers-make","status":"publish","type":"post","link":"https:\/\/www.solutions4childcare.com\/index\/mistakes-child-care-business-buyers-make\/","title":{"rendered":"Mistakes Child Care Business Buyers Make"},"content":{"rendered":"\t\t
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In my 28 years of Child Care Business Mergers and Acquisitions, I have met and worked with thousands of child care business buyers. From the individual buyer looking to purchase their own child care business \u2013 to the business development officers making acquisitions for large regional and national child care chain operations<\/p>

You name it, and I have seen it good and bad \u2013 buyers that could not have been better to work with to those that ultimately, due to their poor decisions and actions, were told to move on by the child care business owner \u2013 the owner was no longer interested in having them purchase their child care business.\"\"<\/p>

My child care business brokerage services are focused on representing the owner\u2013seller of child care businesses. And thus, I rarely provide representation for child care buyers. However, I have often shared with the buyer that his\/her decisions and actions might not positively impact their ability to buy a child care business.<\/p>

If you are a buyer seeking to purchase a great child care business, below are some of the most common mistakes child care business buyers make \u2013 both individual and large chain child care buyers.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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\n\t\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/i><\/span>\n\t\t\t\t\t\t\t\t<\/i><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\tNot Protecting Confidentiality<\/a>\n\t\t\t\t\t<\/div>\n\t\t\t\t\t

The unfortunate truth is\u2026no one cares as much about confidentiality as the child care owner does. However, confidentiality breaches\u2013even small ones\u2013 can devastate a child care business. Buyers that do not understand the negative ramifications of confidentiality breaches \u2013 or even really care about the seller\u2019s confidentiality are, in a word, \u201cdangerous.\u201d<\/p>

Breaches in confidentiality can lead to the loss of teachers and staff, loss of enrollment, financial losses, and lots of trauma and drama. All of which the owner has to deal with \u2013 not the buyer. \u00a0When determined that a buyer can not be trusted to protect the confidentiality or does not care about protecting the owner\u2019s confidentiality, the only advice a child care Mergers and Acquisitions advisor can give the owner is to disengage with the buyer. \u00a0And brokers have the fiduciary responsibility to share with their owner client if they have any concerns about a particular buyer and confidentiality before the buyer learns which child care business is for sale. I advise child care owners to pass on buyers that do not protect confidentiality \u00a0– there are far better buyers to work with.<\/p><\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t

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We have all heard the familiar saying, \u201cThe customer is always right.\u201d \u00a0Many child care business buyers have the posture that they are the customer looking to buy the child care business, and they can demand this or that; the owner must please them and adhere to their wishes because they are the customer. Obviously, this is completely the wrong attitude. I have never represented a child care business seller that was not very concerned with selling their child care business to a good buyer \u2013 the buyer that would carry on their legacy, treat their employees well, and care for the children and families. The last thing a child care owner wants to do is sell their child care business to a demanding buyer.<\/p>

Child care business buyers need to understand that the owner is sizing them up to ensure they are the \u201cright buyer.\u201d It is up to the buyer to prove to the child care business owner that they are qualified, care, and can be trusted with the business the owner has often spent decades building. Viewing the opportunity to purchase a child care business is much like applying for a job and making a great impression. There are dozens and sometimes hundreds of potential buyers for each child care business that comes to market. The child care business owner will go with the best buyer \u2013 the buyer they like, trust and feel good about.<\/p><\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t

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Since I specialize in child care Mergers and Acquisitions, I am contacted by hundreds (yes, hundreds and some years over a thousand) of new child care business buyers yearly. Many individual buyers and those representing a larger buying group do not have a clearly defined acquisition target. They often give a vague answer or, even worse, say it doesn\u2019t matter when asked simple questions like:<\/p>