Key Questions to Consider as a Seller

What’s my Why?

“Why are you Selling?” is typically the first question that comes up in the process from prospective buyers. To prepare yourself and your company for a sale in the near-term, it’s important to have good answers to these three questions…

Often, school owners want to retire and lack a succession plan. Sometimes, they want to grow; other times, they just want to take some chips off the table. Or maybe one partner wants out. The net worth of most business owners is tied up in their businesses, and owners should consider monetizing and / or exiting business assets in order to achieve value and reduce risk. Whatever the reason for selling, the first step to closing a deal with the right buyer, at the best price, is having a clear understanding of your Purpose, Objectives and Intended Outcomes.

Is the Time Right?

Timing is another important consideration. It’s almost impossible to perfectly time any market, but most owners should consider selling when the time is right. If you or your family don’t plan on owning the school(s) for the next 10 or 15 years then the best recommendation is to test the market with a qualified buyer.

As with other investments, owners can become emotional about the prospects of their businesses and, as a result, hold on too long. Keep in mind: sometimes, events out of an owner’s control affect value — such as shifts in the industry — so if you know a transaction is looming, it’s best to get a move-on while business is humming.

Who’s in my Corner?

Who’s in your Corner? When considering an exit strategy, it’s natural to consider going at it alone. You are probably thinking, “No one can present my school business better than I can. Why pay a fee when I can probably do a better job myself?” The early childhood market is highly dislocated and suffers from a severe imbalance of information and market access to private and institutional buyers. Driving value is achieved from running a broad but limited auction process among several qualified buyers.

“Just the presence of an advisor, like SchoolWise Partners, can increase the transaction price because buyers realize that they cannot take advantage of the seller.”