Selling a Childcare Centre:

It is highly recommended that you first prepare your child care business prior to placing your business on the market in order to maximise its potential value. Preparations may include:

• Seeking financial advice on any tax implications on the sale of your child care centre, and when any payments are due to ensure that there are no arrears.
• Ensuring that your child care centre's financial records are up to date and that all necessary statements have been lodged. Prospective purchasers typically perform due diligence on the records of a business prior to making an offer. This process allows the interested party to determine the viability of the business, project future profits and determine the value of the centre, all of which will affect the offer submitted to the vendor.
• Update all administrative records and ensure that they are legible and accurate. For example, ensuring that the details of all registered students have been centrally recorded and that immunisation records have been filed.
• Liaising with existing staff about the impending sale of the child care centre and discussing with them their future intentions. If employees indicate they will seek alternate employment, termination payments and the payment of other entitlements should be taken into account.
• Ensuring that all employment contracts are up to date and that they comply with the most recent Awards and legislative requirements. Should there be any inconsistency, these contracts should be updated to achieve compliance.
• Review compliance with workplace, health and safety regulations together with food and safety regulations and make any necessary modifications.
• Review the terms of the licence and any Council conditions imposed and ensure that the child care centre is operating accordingly.

Navado Lawyers can assist you in the smooth and efficient sale of your child care business. If you wish to speak with one of our Child Care Law Lawyers, please contact our firm by telephone on (02) 9233 4048 or send an email to info@navado.com.au.

This webpage (and any material or wording appearing on this webpage) is provided for general information purposes only and does not constitute any Legal Advice. It does not take into account your objectives, your instructions or all of the relevant facts and/or circumstances. Navado accepts no responsibility to any person who relies on the information provided on this website. We further refer you to our Disclaimer.