Selling Up!

[Guest]

After 11 years of owning/running a pre-school in partnership with a very good friend, I have decided to hang up my boots and give it all up.

 

This is the problem: My friend doesn't think she can work with anyone else and so has decided that the best way forward will be to sell the business, have half of the profits each and then hopefully she and all the staff will be employed by the new owner. If this cann't happen then we will close down and sell off all of our equipment.

 

Question: How do you go about valuing the pre-school and where do you advertise without parents getting wind of it and panicing!

 

We have a very good reputation in the town, we had a 'good' ofsted and we have always and still do have a long waiting list. We take in 24/25 children every morning.

 

Has anyone else been through this before. HELP

 

P.S. I am not a new forum member, I have just created this user name to protect our identity incase someone new me!!!!

[Guest]

Hi

 

My old pre-school is in a similar situation and it currently is running as a charity run community pre-school and wants to turn itself into a Private Nursery, if this does not work then they will sell it. All I can tell you is that they have contacted Local Authority who are going to take them through the process. The LA has lots of adviser than may be able to help you. (they did ask the LA to take in on but they didnt want it, so they decided to have a go at a private nursery instead)

 

Sorry I can offer any further advice and I wish you luck.

 

jx

[Guest]

I recall in Nursery world they have advertisments from 'preschool business selling agents' may be worth contacting one of them, I think they offer a valuation service and discreet advertising of the business. I'm sorry I can't remember the names of any of these 'estate agents'.

 

I closed my business in December, didn't consider selling as a 'going concern', rented premises without a lease etc. I sold off all my equipment and didn't get nearly as much as it was actually worth, total contents including all furnishings, resources, equipment of a full day care setting I got £2,000.

 

Has your partner considered what may happen if the new owners want to start afresh with a new team? Although you may be able to have retention of staff as a condition of sale.

Have you considered the possibility of redundancy payments which may be due to current staff?

 

Have a look at this google list, may give an idea of the current market

 

HERE

 

 

I wish you well in your future plans and that the position you are currently in has a positive, successful outcome.

 

Peggy

[Rea]

It seems a bit of an extreme way to avoid working with someone esle. Could you be a sleeping partner? Take some profit but get a job elsewhere. Or could your partner afford to buy you out?

If the setting is financially viable but you get no takers it will maybe keep you hanging on longer than you want.

I think your partner should have another think about it. She says she wont be able to work with anyone else but thats what we all do everyday. Is she overly anxious do you think?

 

Hope something works out

[Chill]

She would have to work with a new owner so maybe that would be difficult for her.

[Guest]

This is the problem: My friend doesn't think she can work with anyone else and so has decided that the best way forward will be to sell the business, have half of the profits each and then hopefully she and all the staff will be employed by the new owner. If this cann't happen then we will close down and sell off all of our equipment.

 

Its not that my friend isn't prepared to work with someone else, we have a very strong working relationship, I do all the admin and she does all of the planning preparation etc. she said she would find it hard to have the same trust and faith in someone else as we have in each other, we can almost finish each others sentences! I also know that change is good for everyone!

 

I would love to be a sleeping partner, but as we all know there is no money in childcare to fund this sort of set up!

 

We are in a rented church hall, so don't have premises to sell, only equipment, good will and a full waiting list.

 

We would like to ask parents, but I don't plan on leaving until next July. We want to get sorted by Christmas so that we have a clear plan of what we are going to do, if we ask parents now they will all panic and take there children elsewhere.

 

We are not committee run, we are private working 5 morning a week for 3 hours per session. So only have me and her to consider (and of course all of the staff)

 

Oh what to do for the best

[HappyMaz]

Hi unsure!

 

When I bought my nursery a couple of years ago it was relatively easy because the owner had identified a buyer - me!

 

She was advised by an accountant who looked at her books, and put a value on the business. I then had my accountant look at the books and he told me what he thought I should pay for it. In the end we reached an agreement which we could both live with: me from the point of view that I had helped build up the business over four years, and her from the point of view of recouping her investment and having a big enough sum of money to walk away with to spend on other things!

 

The price her account came up with was based on the likely turnover and profit, equipment and the goodwill.

 

Hope you can reach an agreement that you can both live with!

 

Maz