Regardless of everything the last two years has thrown at us – actually, because of it – childcare property and business assets remain investors top pick, driving the current sellers’ market deeper, and broader. We have qualified buyers ready to buy the right asset today, with more interested parties than we’ve experienced in decades of specialising in childcare sales. Why?
- The strength of the childcare industry as a whole
- The new appeal for businesses with longevity and demand
- It being a sector that’s essentially underwritten by Government
In this blog:
Let’s look at the strength of the childcare industry.
As a nation, we’ve survived uncertainty, volatility, lockdowns, mandates and job insecurity. For many months no one had any idea what the future would hold. But, childcare not only survived two years of uncertainty, many experienced operators have come out on top financially. Enrolments are now trending higher over previous years, and with recent funding changes for siblings there is already a noticeable increased demand for places.
The government has put its full financial support behind the industry, giving parents more affordability to enrol their children in care and go back to work.
What about business owners? We’ve become stronger through these years, being forced to adapt, and find new ways to thrive when circumstances change. After walking through the fire, the new childcare standards in education, quality, care, safety, and security are ever evolving.
In the same way, consumers have become more flexible in how they use services like childcare. They’ve become resilient in working around constant changes in protocol, and more confident that childcare will still be there when they need it.
Investors want businesses with staying power.
Investors, especially high net worth and corporate buyers, are looking for businesses that can stand the test of time. They’re actively chasing earnings, scalability and consistency. Those factors are synonymous with childcare centres, and been proven through the trials of the pandemic.
We’ve seen many businesses fall throughout Covid-19, but the childcare sector in general has shown the opposite: growth, resilience, and expansion.
As our nation has moved into the next season of ‘normal’, we’re now also expecting things can get even more normal with time. This sentiment is fuelling buyer interest – they’ve watched from the sidelines during the global crisis, and they’ve identified the industries that have shown their mettle.
All these circumstances have led us to where we are today: in the midst of a driving sellers’ market. It’s an exceptional time to capitalise on buyer demand and the obvious strength of the childcare sector.
Getting an appraisal tells you where you stand.
Even if you’re not sure about selling, we can provide a confidential market appraisal. We’ll be able to offer more than just an estimated sale price, too; we also identify any potential improvements and exit advice to maximise profit. That way, you’ll be prepared whether you’re ready to sell now, or later.
One extra tip: when you sell, you need to make sure your agent is a specialist in childcare centre sales specifically. For instance, we specialise in all aspects of centre operations, its niche sales market and how you can enhance your centre for greater profit.
Getting an appraisal now can help regardless of when you plan to sell. But, we’re in the midst of the best sellers’ market we’ve seen, with buyers waiting in the wings. It might be the best time for you to take advantage.
What are buyers looking for?
Right now, anything and everything: all childcare assets including businesses, DA sites, passive investments anywhere in Australia. Top of the list are freehold going concerns. These buyers are motivated and well-funded, looking for centres of all license sizes, condition, and in all Australian States and Territories. We’re the only properly licensed childcare brokers who operate Australia-wide.
If you’d like to book an appraisal, you’re welcome to contact Lincoln directly on 0424 370 025, or Andrew Urquhart on 0408 439 762.
You can also register your interest as a seller for more information about the sale process, appraisals, and your profit potential.