SELLING OR BUYING AN EARLY EDUCATION CENTER
Child Care centers, private Elementary Schools, and Afterschool companies consisting of a single or multiple sites, can be sold and purchased with ownership transferred between entities. Businesses may be transferred by selling some or all of the company stock or designated assets owned by the company.
Business value in an educational setting is determined by historical income and expense items, and adjusting for any changes (such as rent, employee benefits etc.) that will be implemented post-closing. A multiplier is then applied to the derived annual cash flow which determines the business value.
Multipliers are based on current industry standards and vary depending on company size and programming quality.
PROFIT & LOSS REPORTS + EXPENSE REVIEW
Regularly produced profit and loss reports are vital to any organization. Management must receive accurate, timely information to make daily business decisions. Healthy educational businesses must designate expenses to ensure quality whilst maximising the overall financial health of the company. It is critical to have benchmarks for comparison and to make adjustments as needed.
OPERATIONAL FINANCIAL STRATEGY
Financial information should be analyzed to produce written goals and a strategy to maximize revenue and control expenses in order to produce quality services and prevent unnecessary waste. All team members, especially managers, should have a full understanding of the financial strategy and be trained to be effective in implementation techniques.