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  #1  
Old 07-25-2011, 01:51 PM
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MsMe MsMe is offline
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Default Can You Sell Your Home/Daycare As A Buisness?

I run a daycare home in a small town (10,000).

I own the home it is used completly for daycare. We have been open 7 years and are VERY well known and repected in the community. The only 'turn over" we have had is when a family moves away (only 4 times) or a child outgrows our program (11yrs old)

The home is older, but clean and mantained. it is really a perfect house for dayare. LARGE (think the size of a big bedroom) entry coat room, cool 'storage' closet that converted perfectly into a baby changing area, two bedrooms, one bath, HUGE living room and large very shaded fenced in back yard. The home is located super close to the corp where most parents work and MAX drive time is 5-10min for all parents. The home is valued @ 107,000. 100,000 is the absolute LOWEST a home in this community goes for unless it needs completly redone.

I would love to be a SHAM when I have children of my own and the plan is to start a family in the next 1-2 years.

Has anyone ever heard of someone selling a home as an already established daycare? I am willing to leave everything behind, and even stay on to help train if needed. This community is not over stimulated with daycare providers there are actually very few. Our town is home to two major coorperations that emlpoyee most of the town (and those surrounding us) We have not been greatly effected by the economy.

We operate now as a two provider daycare (16 children) and have been VERY profitable every year.

Do you think it is possible to sell as a buisness and if so for what price?
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Old 07-25-2011, 02:27 PM
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Originally Posted by MsMe View Post
I run a daycare home in a small (10,000).

I own the home it is used completly for daycare. We have been open 7 years and are VERY well known and repected in the community. The only 'turn over" we have had is when a family moves away (only 4 times) or a child outgrows our program (11yrs old)

The home is older, but clean and mantained. it is really a perfect house for dayare. LARGE (think the size of a big bedroom) entry coat room, cool 'storage' closet that converted perfectly into a baby changing area, two bedrooms, one bath, HUGE living room and large very shaded fenced in back yard. The home is located super close to the corp where most parents work and MAX drive time is 5-10min for all parents. The home is valued @ 107,000. 100,000 is the absolute LOWEST a home in this community goes for unless it needs completly redone.

I would love to be a SHAM when I have children of my own and the plan is to start a family in the next 1-2 years.

Has anyone ever heard of someone selling a home as an already established daycare? I am willing to leave everything behind, and even stay on to help train if needed. This community is not over stimulated with daycare providers there are actually very few. Our town is home to two major coorperations that emlpoyee most of the town (and those surrounding us) We have not been greatly effected by the economy.

We operate now as a two provider daycare (16 children) and have been VERY profitable every year.

Do you think it is possible to sell as a buisness and if so for what price?
I think you could sell the building and contents. Whether or not you have value in the client base would depend on how they will react when they know it's for sale.

At that small size, I don't know if there is any value in the day care being full. The fact that you can show tax returns and profit should increase the value of it. Part of the value of it would be whether or not what you do is easily replicable in that setting. If you are doing odd hours, early hours, late pick ups, evening, allowing long hour days for same price ... etc.

Meaning... is your profit more a reflection of what you do that is special that the new owners would have to do in order to turn a profit. If you are running a regular 6-6 business that any incoming provider would expect to have to do... then that would increase it's value. If it's odd or special then maybe not so much value.
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Old 07-25-2011, 02:38 PM
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We do only 'normal' hours.

7:30am to 5:15pm. M-F All major Holidays paid. Paid vacation. I can't even begin to estimate how my families would react (would they stay vs would they go) as it would obv depend on the buyer.

What I think I have to offer is the space and the est setting ( it took as it doesn most YEARS to build up the 'stuff' we have). It would also save me the tiem of sell the proerty and the daycare items seperatly.

I reallyt think their is a 'market' for this type of sell in my town....MANY SHAMS.

My partner started this with a friend 8 years ago(it didn't work with her I can in 7.5 years ago) bc their kids were going off to to school and they both did DC for one child in their home. I am hoping there may be a couple of women wanting to get back into the working world usign the skills they 'know"
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Old 07-25-2011, 02:45 PM
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In the community in which I live this same scenario happened. The woman was a provider for many years and had built a fairly solid client base. She decided that she would like to venture with her husband into another area of employment and put her daycare home up for sale; contents and clients included.

How she managed this was to have each current parent agree to give the new owner a 30 day trial period once the business changed hands and if the parent and child were both happy with the new situation , they would agree to sign on with the new provider as a regular client.

When she finally did sell her business, almost all of her current clients ended up signing on long term with the new provider. I do know though that the new provider had been an assistant to her the final year she was in business so she probably ran the business much like the old provider which would explain why most of her client base stayed on. kwim?

So, IMHO, unless your situation is the same, I would think you could only sell the house and contents and not guarantee any new owner the clients would be part of the package.

Have you thought about renting out the business? Same way though...house and equipment but no guarantee of clients? Just a thought.
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Old 07-25-2011, 03:00 PM
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Originally Posted by Blackcat31 View Post
In the community in which I live this same scenario happened. The woman was a provider for many years and had built a fairly solid client base. She decided that she would like to venture with her husband into another area of employment and put her daycare home up for sale; contents and clients included.

How she managed this was to have each current parent agree to give the new owner a 30 day trial period once the business changed hands and if the parent and child were both happy with the new situation , they would agree to sign on with the new provider as a regular client.

When she finally did sell her business, almost all of her current clients ended up signing on long term with the new provider. I do know though that the new provider had been an assistant to her the final year she was in business so she probably ran the business much like the old provider which would explain why most of her client base stayed on. kwim?

So, IMHO, unless your situation is the same, I would think you could only sell the house and contents and not guarantee any new owner the clients would be part of the package.

Have you thought about renting out the business? Same way though...house and equipment but no guarantee of clients? Just a thought.
I like the idea of a 30 trial period....I know that I could never garentee clintes would stay with the new provider. I am also very willing to do a longterm transition.. The thing I worry about must would be the parents leavign prematurely when they learned of a sell. My families and I are very attached so I would liek to think that they would stick with me "till the end" but the truth is I know good care is hard to find and they would need to look and leave for new care when it felt right to them.

I never thought about renting...as I would prefer to be done with it all together.
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Old 07-25-2011, 04:09 PM
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I nearly bought a home and daycare like you are describing. It just ended up not being exactly what I wanted. She valued her daycare (clients and supplies) at $30,000. I like the idea of hiring an additional assistant or two for a year in anticipation of selling to them. I would have liked that deal rather than simply trying to jump in over the course of a month or two which is what was going to happen if I bought the one I had found.
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Old 07-25-2011, 04:48 PM
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I nearly bought a home and daycare like you are describing. It just ended up not being exactly what I wanted. She valued her daycare (clients and supplies) at $30,000. I like the idea of hiring an additional assistant or two for a year in anticipation of selling to them. I would have liked that deal rather than simply trying to jump in over the course of a month or two which is what was going to happen if I bought the one I had found.
was this on top of the cost of the home?
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Old 07-27-2011, 12:34 PM
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Yes that was on top of the cost for the home. Her house was appraised at $150,000. I would have needed to get two separate loans which I knew I couldn't do. She did say she would allow me to essential do the $30,000 as a loan from her and pay her monthly for the daycare stuff. She had lots of information about everything she needed for the daycare, how much utilities were and how much she'd expect me to pay her for the daycare and how much to pay her and the assistant for the transition time frame. She also had her monthly income figured out for me.
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Old 07-27-2011, 05:52 PM
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In CA daycare licenses are non-transferable.
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