Two-Site Texas Childcare Business Sale & Leaseback
HINGE is thrilled to announce the closing of a two-site childcare business in the I-35 corridor between Austin and San Antonio as well as the leaseback of the two facilities from the same seller.
The sellers started this business at one location more than 20 years ago, purchasing a beautiful site amidst a pecan tree orchard. Taking advantage of their entrepreneurial enthusiasm, the lack of organized competition and the expansive back yard space, they were able to capitalize on the growth of the surrounding single-family neighborhood and consistently deliver long-term enrollment stability.
The second location was started soon after the Great Recession in another burgeoning neighborhood. This building featured an indoor gym area and all the newest, top-of-the-line features.
However, after running these two sites for the past eight years, the sellers decided to capitalize on the current strength of the market for childcare businesses and transition out of the day-to-day obligations of running two centers.
HINGE helped the client evaluate the pros and cons of selling the buildings or retaining the buildings as a leased investment and identified the positive attributes of real estate income from a national operator. These factors fit nicely with the seller’s personal financial goals.
HINGE coordinated the production of marketing and financial information on the business, but also required buyers to provide feedback on the recommended form of lease and the rent to be paid over a 15-year period. After one buyer was identified that had the best combination of business acquisition price, credit strength and lease compatibility, we engaged in a thorough due diligence process to get the transaction completed.
The quality of the buyer’s attention to detail in operations, together with a robust business operations software, enabled this transaction to come to a satisfactory conclusion. Last-minute negotiations on some of the licensing and health regulation compliance issues were resolved, which improved the quality of the seller’s property and will allow the new operator to expand their scope of childcare services.
For many clients of HINGE who happen to own the real estate in which their business operates, exploring the idea of becoming a landlord has many positive attributes. Of course, some sellers prefer to sell everything and diversify into other forms of real estate investment. HINGE helps each seller identify the best approach for their personal needs.
To learn how HINGE Brokers can support your buying or selling needs, please contact us at email@example.com.