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Selling Your Child Care Business (Second in a Two-Part Series) - Determining its Value

by Roger Neugebauer
May/June 1997
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Article Link: https://www.childcareexchange.com/article/selling-your-child-care-business-second-in-a-two-part-series-determining-its-value/5011510/

You invested a substantial amount of time and creative energy into building your child care organization. You carefully selected your staff, and are proud of the services you provide for children and families. To you, therefore, the business has substantial value!

The $64,000 question is: Would a prospective buyer of your business agree with you about this value?


This article is designed to help you project your organization's potential sale price. We will review the factors to be considered in valuing a "closely held business" - a business which is privately owned by relatively few shareholders or owners. The factors discussed are based on the guidance from CPA - and frequent Exchange writer - Thomas Lukaszewski from Naperville, Illinois, as well as on the insights of child care professionals with extensive experience in buying and selling centers. This article is not intended to serve as a substitute for utilizing competent valuation professionals.

Preliminary Considerations

Before you get your calculator out to tabulate your bottom line, here are a few points to take into account:

_ Be prepared. Your ability to sell your business for its best price will be dramatically impacted by how well you prepare for the sale process. Make sure you pay attention to ...

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