HINGE Closes Transaction for Multi-Site Operator in New Jersey/New York Metroplex

HINGE Brokers is pleased to announce the closing of a collection of early childhood education businesses for a multi-site operator in the New Jersey/New York metroplex.

The sellers took over the childcare business from family members who had originally started the company more than 30 years ago. After completing some operational, financial and marketing upgrades, the sellers fine-tuned the business until they were ready to sell.

HINGE performed a financial analysis to help identify cost savings and synergies that a national buyer might enjoy after the purchase of the package, and we were able to demonstrate to buyers the credibility of this financial approach. This helped boost the profit calculations, upon which all businesses are bought and sold.

In order to get the best exposure and pricing, a comprehensive sales package was assembled and a vast data room was compiled. After signing NDAs, buyers were given coded access to the data room and multiple sets of tours were organized. Several buyers submitted offers in writing and HINGE communicated with buyers and the sellers to optimize the best combination of price, certainty and culture. 

HINGE provided assistance to the seller during the diligence phase with support from our Diligence Department. This helped take some pressure off of the seller—after all, they still have to run their business! HINGE was in constant communication with the buyer, assisting with their Quality of Earnings investigation and discussing market comparables as well as the state of the industry. 

HINGE has a unique vantage point to assist not only our sellers, but also to keep the buyer community informed, engaged and focused on satisfying contracts that have been executed with HINGE clients. 

As often happens with complicated transactions, there was some drama at the 11th hour. Given the collaborative approach and trust established during the process, the parties agreed on a unique management structure which resulted in the closing of this multi-site transaction at the scheduled time—even though there were some modest licensing and paperwork issues still getting wrapped up.

If you would like information about how HINGE Brokers can help support your intricate business or real estate issues in the childcare industry, please contact us at info@hingebrokers.com.

Meredith Martin