Where Do I Start?
Buying a business is very different to buying other Real Estate. It is important to contact an agent who specialises in this specific industry. We at Australian Sales & Leasing specialise in the sale of Childcare/Centre businesses, Freehold/Properties & Proposed New developments throughout Melbourne & Victoria, with contacts via our network throughout Australia.
What Next?
If you wish to receive advice and information, it is necessary to provide a few details about yourself to the Consultant at
- Australian Sales & Leasing.
- Ask yourself these questions:
- How much money do I wish to invest?
- How much money do I need to make?
- Do I want an older, newer, larger, smaller, purpose built or converted centre?
- Where do I want the centre to be located?
- Do I want to buy the real estate as well?
Must I sign a Confidentiality Agreement?
Australian Sales & Leasing request that intending purchasers sign a Confidentiality Agreement before submitting to you the owner’s private income & expenditure details, etc. about centres. You may naturally, seek the advise of your accountant or legal adviser regarding the purchase of your business.
We stress the importance that you keep all the details supplied to you strictly confidential, especially including names & locations of the centres.
Your income is defined by the size of your registration so generally it is a good idea to buy the largest Centre affordable. Decide if you intent to work within the centre yourself or to operate the centre under management, but you must have qualified & some experienced staff. Calculate the amount of money you need to replace your existing income & compare this with the income & likely profit from the centre under consideration.
Arranging Finance
It is a good idea to discuss your position regarding a business loan with several banks & compare the deals being offered OR In many instances we are able to advise you on sources of finance that are available, or through specialised financiers generally at the lowest rates.
Section 52/Form 2 (formerly form 19)
What is it?
According to Government regulations when a sale of any business is $350,000 or below, a form 2 must be provided to the purchasers which is known as a vendor’s statement under Section 52 of the Estate Agents Act. This Statement must be on the Prescribed Form 2.This form provides most of what you will need to know about the operating income & expenditure of the business you are considering. Upon deciding on a Childcare Centre, request a copy of the Lease for your perusal, consideration & acceptance together with a list of the chattels.
Note: We at Australian Sales & Leasing offer a unique service in providing you with an analysis of the Vendor’s expenses advising you of the add back items generally personal to the vendor and not relating to the running of the business.
Is the Price Fair?
Consider these important points.
- Size of the Centre
- Fee Structure
- Type of building (purpose built or converted premises)
- Quality of the fixtures & fittings
- Quality & quantity of toys, equipment, incl. external play items & the condition of the play areas
- Terms of the lease, options & conditions
- Staffing levels
- Level of profit
- Is it a good business?
- Accredited (number of years)
If centre complies to the current D.H.S Children’s Services requirements. We can assist you with compiling your offer for the vendor. The vendor then needs to accept your offer, in writing, before we can proceed.
Documentation for your Purchase
Before completing your purchase, you will have received a Form 2 (Section 52) or a Profit & Loss statement & complete an offer to purchase
You need to familiarise yourself with the following documents:
- Profit & Loss OR Form 2 (Formerly Sec 52)
- Copy of the lease
- List of toys, equipment & chattels
- Copy of certificate of registration
- Staff Roster
- Completed Letter of Intent to Purchase
- Copy of accreditation certificate
- Copy of council health compliance certificate for the kitchen
