Potential Preschool Buyer Meeting Agenda

SET THE FOUNDATION

• Have the potential buyer sign an NDA first
• Discuss your business’ background
• Explain why you are selling (be careful)
• Ask them why they want to buy a business
• Ask if they have the full support of their family

LAY OUT THE TERMS OF THE SALE

What They’re Buying

Don’t put a $ on the worth of these though – that will come later from your lawyer in the Asset Purchase & Sale Agreement.

• Future Business Income
  Show past 3 years of Profit/Loss Statements
• Mentorship
  Discuss if you’re going to stay on for a short period to ensure their success
• Goodwill
  All the reasons why the business will continue to be successful (the relationships of current and past families, the brand, the reputation of your preschool in the community, etc.)
• Assets
  All the furniture, materials, curriculum, supplies, digital assets, customer lists, etc.

Business Valuation

• Average past 3 years of Net Profit
  $60K, $80K, $100K = $80K average
• Multiply that amount by 4 (that includes goodwill, furniture/inventory, mentorship, etc.)
  $80K x 4 = $320K
• That equals your business valuation
  Your business is valued at $320K, aka what you want to sell it at

NEXT STEPS IF THEY AGREE TO THE TERMS

If potential buyer agrees on your terms (or if you eventually negotiate to a number you both agree on)

• Tell them you’ll have your lawyer draft up the Asset Purchase & Sale Agreement and will send it to their lawyer for review. Note that everything is still up for debate, and any term can be changed if both parties agree to it
• Move forward with the next step of helping buyer to secure a loan (in the end – it’s their responsibility to get it, and they’ll have to take all the steps in the application… but there’s no reason why you can’t help them along to ensure the sale goes through)