How to Value a Preschool

Early childhood education is becoming increasingly important to parents seeking the best ways to prepare their children for the future. Parents are often willing to pay premium prices for preschool education and child care, making for a lucrative business for buyers and sellers alike. Whether you’re seeking to enter the preschool business or sell and move on to other business ventures, it’s important to understand how to value a preschool properly. Use these tips from Sunbelt to help you determine the most accurate valuation of your Knoxville preschool.

tips for valuing a preschool

Determining Value

Valuing a preschool can be done by assessing two main factors: what’s included in the sale and the preschool’s reputation.

First, determine what specifically is listed for sale. Is the actual facility included with the preschool business for sale? Will the remaining staff and clientele remain? Acquiring a facility can either drive the selling price up or down depending on the condition of the building and whether it will need renovations and updating. Seeking a new staff and marketing the preschool for a new list of customers can be costly, and needs to be determined before closing the deal.

After determining exactly what you’re buying or selling and if applicable, what you’ll still need to invest in, consider the reputation of the preschool. Industry research points to a growing demand for quality child care, and parents are doing more research on their children’s early education now more than ever before. A preschool that comes with a gold star reputation will sell for a higher price. If the staff is certified in any safety protocols or special care, that will also drive the price up. After assessing the current reputation, you can also decide if you will keep the same curriculum. Some teaching methods rank higher than others, resulting in another price-determining factor.

Invest in Extra Help

Valuing a preschool is best done when you spend extra care and time. Consider hiring a Knoxville-based business broker to help you weed through offers and crunch the numbers. Preschools require a particular type of owner, and the selection process needs close attention. Before buying or selling your Knoxville preschool, be sure you’re prepared to take on the duties and tasks required for expert childcare. Not everyone is the perfect fit, so be selective during the buying/selling process.

A business broker will help field offers and determine which deals are the in the best interest of the preschool for both the buyer and seller. Many Sunbelt Business Brokers are also certified business intermediaries, meaning they rank as the top business brokers with expert experience. Consider enlisting help to make sure you land the best deal possible and determine the most accurate valuation of the preschool.

Sunbelt Business Brokers of Knoxville is part of the Sunbelt Network, the world’s largest business brokerage operation. With our years of expertise, we’ll help you buy or sell a preschool business in the Knoxville area! Contact Sunbelt of Knoxville today to get started on your next business venture.

Related reads:

Stay Up-to-Date on The Latest
Subscribe to our newsletter and never miss our latest news.

"*" indicates required fields

Select your subscription list
This field is for validation purposes and should be left unchanged.