So, you’re thinking about selling your nursery business? Here at Phoenix we have a team of experts who will provide you with the best advice, guidance and support throughout the sales process.

With that in mind we’ve put together a list of our top 10 dos and don’ts when selling your business.

Along with this, you can also view or download our ‘Selling your Nursery FAQ’, which has answers to the most frequently asked questions we are asked about the selling process.

Download the FAQ here

Do prepare…
Before you start the sales process for your nursery business make sure you prepare all of the required paperwork. Ensure you have copies of your financial statements for the last two years and your management accounts for the period since the end of the financial year. Making these readily available to your corporate financial advisor will make the process for selling your nursery business quicker and smoother.

When selling your nursery business gather evidence for potential buyers

Do gather evidence for potential buyers…
Gather documents that will help you to demonstrate the quality of care your nursery business provides to potential buyers. Good examples include Ofsted reports, parent and staff surveys, staff training records and details of any ongoing contracts with Local Authorities (LA) and other organisations.

Do get an upfront quote from a corporate solicitor…
Typically, a corporate solicitor will charge between +/-1% of the value of sale, so make sure you agree this cost prior to starting the sales process for your nursery business. Depending on how up to date your financial information is, you may also need to ask your accountant to provide additional support throughout the process, so bear this in mind.

Do sell the shares of your company if possible…
As a general rule, it’s always best to sell the business’ shares. Selling the shares means there’s no need to change contracts and leases. There are also significant personal tax benefits, such as entrepreneur’s relief, meaning you will only have to pay a one-off tax charge of 10% of the net proceeds received from the sale of your nursery business.

Do offer buyers the opportunity to take over property contracts…
In the majority of cases, buyers will be keen for the nursery business to continue trading from the existing premises, so you will need to provide details of existing lease contracts or even give them the opportunity to purchase the property.

When selling your nursery business choose a corporate finance advisor with experience

Do choose a corporate finance advisor with experience…
When it comes to selecting a corporate finance advisor, make sure you choose a firm with previous experience of selling nursery businesses. Not only will you get the best advice and an accurate valuation, it will also make the sales process much easier.

Don’t withhold details about current staff and client contracts…
Potential buyers will want to see information about your current staff and client contracts, so be prepared to share details about the number of hours that staff work per week, the pay and charge rates, the duration of the contracts, the number of staff you employ and their shift patterns.

Don't underestimate how long the sales process will take when selling your nursery business

Don’t underestimate how long the sales process will take…
Once a buyer has been found and assuming all of the required information is readily available, the process of selling your nursery business will normally take 10-12 weeks, so make sure that you factor this into your future plans.

When selling your nursery business don't share confidential information with potential buyers without a non disclosure agreement

Don’t share confidential information with potential buyers without a non-disclosure agreement…
Confidentiality is very important during the sales process so before you share any information about your nursery business with potential purchasers make sure they sign a non-disclosure or confidentiality agreement.

Don’t pay over the odds to sell your business…
Of course when you are selling your nursery business there are a number of costs that you will incur, the first of which is the fee charged by an agency or corporate finance advisor such as Phoenix. Usually your agency or finance advisor will take an agreed percentage of the total sales price, which is paid on completion.

Ready to get going?

At Phoenix our team of expert advisors has over 60 years combined experience in selling businesses in the health, social care and education sectors. We will guide you through the sales process and produce a valuation with a detailed explanation of how it has been reached, such as multiples of adjusted profits, geography, the size of the business and the mix of contracts.

We appreciate that discretion is very important to our clients, so we make sure that every buyer we liaise with signs a confidentiality agreement prior to receiving any sensitive information. All meetings with potential purchasers are held away from the office or outside of working hours and all our communication takes place via a personal mobile number or personal email address.

For more information, or to discuss how Phoenix can help you sell your nursery business, get in touch.