Special Educational Needs
At Phoenix we are a specialist sales agent, offering expert advice, guidance and support to help you sell your Special Educational Needs business.
We have over 60 years’ experience in the health, social care and education sector, including selling our own care agencies. This gives us a unique understanding of what is involved in establishing, developing and selling your Special Educational Needs business.
Along with the information on how to sell your business below, we have created a downloadable checklist of all the information you will need to provide throughout the selling process.
What you will need to provide before you sell your special educational needs business:
- Last 2 years of financial statements [annual accounts]
- Management accounts for the period since of the end of the financial year [if it’s more than 6 months since the financial year end]
- Documents to demonstrate the quality of care your school provides e.g. positive Ofsted reports, staff training records
- End dates for Local Authority [LA] and other contracts
Information for the buyer:
- The financial performance [profitability] of the company
- Details of the existing staff contracts, such as hours per week, charge & pay rates and their duration
- Details of the special educational needs delivered e.g. for children with Autism, ADHD etc.
- Number of staff employed
Once you have the necessary information the sales process will generally take between 10-12 weeks depending on the complexity of your business. We’ll spend the first 1-4 weeks getting to know your Special Educational Needs business and answering any questions you have. During this time, there are several things to consider:
Valuing your special educational needs business:
Depending on the size, geography and the mix of contracts your business has, Phoenix will generally use a multiple of your profits to estimate how much your business is worth. In addition to this there may be a further payment in lieu of net current assets.
Hiring an accountant and solicitor:
You will also need a solicitor and an accountant to help with the sale process. To ensure the speed and ease of the process it is recommended that you find someone with experience in education sector transactions.
Depending on the complexity of your company, which includes the number of employees, contracts, property leases etc. a corporate solicitor will provide you with a free quote before you start the process. This is typically +/-1% value of the sale.
Selling the shares or the assets of the company:
We usually recommend selling the shares of the company if possible, as this means there is no need to change the LA and employment contracts for staff.
Additionally, the sale of shares in a small to medium sized business will normally qualify for Entrepreneurs’ Relief. This means that you would only need to pay a one-off charge of 10% on the monies you receive from the sale.
Keeping the process confidential:
Before any information is shared with potential buyers a non-disclosure or confidentiality agreement will need to be signed. We will also ensure that any meetings with potential purchasers are conducted away from the school and that any contact with you is always via Phoenix.
Whether the buyer will want to buy or continue to rent the property will depend on their individual needs. Often the purchaser will wish to continue to trade from the existing premises post-sale and will either take on responsibility for the existing lease or will enter into a new lease for the existing premises.