Build a Team
Buying an established childcare business or school is not the time to fly solo. This is likely one of the most significant financial events you will ever experience. To ensure this transaction goes as smoothly as possible, you need to develop a team of professionals to assist you throughout the process. This team should include a business intermediary, legal advisors, and financial advisors.
Our job as the business intermediary is to coordinate between the seller and you, the buyer, to facilitate productive discussions that work out differences effectively, and to lead the seller’s team of advisors to the successful sale and transition of their school to your new management. It is also our responsibility to work with each member of the seller’s team and your team to keep all parties involved focused on the final transaction in a timely manner.
Typically, legal advisors are attorneys experienced in transactions and real estate.
• Transaction attorneys specialize in the financial, tax, planning, and procedural matters associated with the buying and selling of a business. These are attorneys you wouldn’t normally use in everyday business matters.
• Real estate attorneys specialize in negotiating real estate contracts, real estate leases, and can help you avoid pitfalls associated with buying real estate or assuming an existing lease.
• Other attorneys may be required for a transaction. These can include employment attorneys, immigration attorneys, licensing attorneys, or attorneys highly experienced in a particular industry that can help with the structuring of the transaction or transferring contracts or operating agreements. After you’ve decided to buy a school, start thinking about what kinds of legal advisors would be most helpful to you.
Financial advisors typically involved in transactions are accountants, CPAs, and transaction CPAs.
• Your own accountant or CPA will still be working with you for your personal accounting needs, financial due diligence, and managing the future needs.
• Transaction CPA firms specialize in the financial, tax, planning, and procedural matters associated with buying or selling a business. They are a great asset in structuring the purchase agreement and allocation of the purchase price. Transaction CPAs structure the transaction to maximize your long-term tax benefits. This kind of structuring often requires balancing your interests as the buyer with the interests of the seller. Since general accountants and CPAs are not as familiar with these intricacies as their transaction counterparts, consider a transaction CPA to help when you’re building your team.
There are other advisors you will need when putting your team together, such as bankers, investment advisors, wealth managers, insurance advisors, and others.
Gateway School Sales represents the seller in any transaction, but we will help prospective buyers find childcare businesses and schools and help facilitate successful sales. Your legal and financial advisors represent you in the sale and will protect your interests in the sale and the contracts.