”
“Our centers served close to 2000 children per day...... It did not take Brad [BFS®] long before we had multiple offers.”
To Receive Our Helpful Free Monthly Newsletter or To Know When Childcare Companies and Schools Are For Sale In Your Area >>>>>
If you own the real estate for your early education company, all of the following improvements are possible with a Sale and Leaseback transaction. Every case is different, but all of these improvements are reasonable and feasible. This same strategy has been used very successfully by sophisticated, publicly traded companies from multiple industries.
The one change is……Sell your real estate and keep your business. It’s done all the time. You can sell your real estate and simultaneously secure a lease under your terms and accomplish everything on the list above. Here is a typical example to show the difference with and without real estate.
Let’s say you’re going to invest $2,000,000 in a childcare center or school. You spend $600,000 for a business component that produces a return (EBITDA) of $200,000 a year and $1,400,000 for the real estate. Your annual return on investment for the business component is 33% ($200,000 / $600,000). In the last 15 years, the average return on unleveraged commercial real estate is 8.8% per the National Council of Real Estate Investment Fiduciaries (NCREIF).
So on a pre-tax basis, $2,000,000 invested at 33% yields $660,000 a year to you. Two Million dollars invested at 8.8% yields $176,000 a year to you. Owning the center / school described here (business and real estate) yields $323,200 a year to you. It’s the same money invested in the same industry…with remarkably different returns. This isn’t a new idea. According to SLB Capital Advisors, the sale leaseback transaction count for 2022 was 11% greater than prior highs reached in 2019 and 2021. Total dollar volume of $31.4 billion also set a record, besting the 2019 volume of $27.6 billion. Many of the largest and most successful early education companies in the country utilize this practice to better their companies……So can you.
”
“Our centers served close to 2000 children per day...... It did not take Brad [BFS®] long before we had multiple offers.”
”
“We got a price that was more than double the price we wanted before talking with Brad / BFS®. Brad set up a very professional win/win situation. We couldn't have been happier.”
”
“Your vast network of buyers and sellers could not be compared to anything we could've done on our own.”
”
“We are pleased and believe this happened so quickly because they know their business and are well connected in the industry.”
”
“If you're considering selling your schools, you couldn't be in better hands... They do genuinely professional work. They keep their word.”
”
“We were amazed that it happened in a shorter time than we expected. Not only did you sell it for us, but also negotiated an exceptional price. You performed above and beyond our expectations.”
”
“I had originally worked with another local M&A firm prior to BFS®. It was not a positive experience. Because of Brad’s knowledgeable expertise he was able to provide many qualified potential buyers, many making offers.”
”
“Over the many years and hundreds of transactions they have perfected the business of facilitating the sale of childcare centers and schools.”
”
“We met in June 2022 when you flew from Nashville for our meeting and things became active almost immediately. In a period of high inflation and steadily rising interest rates, we received over 40 non-disclosures from interested parties.”
”
“We considered using a local business broker or realtor, but we finally decided to use your company because of your in-depth knowledge of this industry.”
”
“Selling a business can be a complex and arduous process that warrants the talents, expertise and knowledge of a professional. I don't know how I could have done it without you.”
”
“Brad [BFS®] had prospective buyers identified within short notice. His experience...in obtaining the best possible price and terms for us was invaluable.”
”
“We hired BFS® to sell our childcare company based on their track record of many successful childcare sales in New York as well as the rest of the country.”
”
“BFS® attention to detail has been superb and greatly appreciated in such a detailed business transaction.”
”
“Brad was exceptionally patient and understanding through a stressful time in the industry. He helped us to understand the process and his procedures are set-up to make the process as easy as it can be.”
”
“Brad not only calculated the initial asking price higher than the other brokers I spoke with...In the end, we closed the deal with a sale price that was twice as much as my local brokers had originally estimated.”
”
“When your book came out, I immediately bought it...contact Brad to discuss your center and make your own millions.”
”
“They were professional and the best move I made.”
”
“You can really see their experience and professionalism in the way they are prepared for everything before it happens.”
”
“Amazing! The prompt results were due to you and your firm’s expertise, efficient preparation of the offer to sell, and most importantly, your knowledge of our immediate market area, including active buyers.”
”
“I was impressed with his knowledge and marketing abilities in the childcare business & his already existing portfolio of potential buyers.”
”
"Brad provided us with good information and advice. Though the facility was located in a smaller community, BFS® team was able to market our business to a much higher number of potential buyers that we would have had access to locally."
”
“His dedication, integrity, trustworthiness, and knowledge of the field separate him from all others.”
”
“We looked into several firms and did in-depth research before deciding on which firm would be best for us. We are very happy that we chose Brad Barnett and his company for the sale of our business.”
”
“BFS® had effective systems in place to ensure that the marketing and sale of our business was very discrete and allowed us to screen all inquiries.”
”
“After doing a little research and meeting with you we were convinced that BFS® was the company... I must say we were not disappointed. Your knowledge of the business and your professionalism produced a quick sale...”
”
“Thank you for all the help over these many years.”
”
“I was fortunate to have found BFS®, Inc. Brad presents a professional and knowledgeable insight to the sale of childcare facilities. My center was small in size, but I was treated with respect and importance.”
”
“Thank you for your assistance in selling our preschool. Your attention to detail, professionalism, and constant support allowed for a potentially difficult and confusing venture to occur without a hitch.”
”
“They are professional, courteous, hard working, knowledgeable, and diligent. This is the best company to sell your child care center.”
”
“I particularly thank you for the confidentiality that your staff displayed during the sale process, this was a very big sale and yet no one was aware of the sale until the proper time.”
”
“You made it clear that whatever we needed was most important. It was reassuring to call you with any question or concern, knowing that you will have an answer or several other options.”
As always, please contact us if you have any questions.