Source: ChildCareEd
Description: Before buying a child care center, request and review all records and documents, and conduct a thorough due diligence: - Licensing & compliance: copies of current licenses, inspection reports, accreditation status, and any notices of violations or outstanding regulatory issues. - Financials: recent profit & loss statements, balance sheets, tax returns, cash-flow information, and disclosure of any debts or other liabilities. - Capacity & enrollment: licensed capacity, current and historical enrollment trends, waitlist size, and tuition rate schedules. - Staffing & HR: staff rosters, resumes and qualifications, certificates (CPR, early-childhood credentials), background-check records, turnover rates, payroll and benefit obligations. - Facility & assets: condition of the building, equipment inventories, safety and health compliance, and whether the property is leased or owned (include lease terms if applicable). - Operations & family agreements: parent contracts, deposit and refund policies, daily schedules and curriculum, and the primary sources of referrals or marketing. - Other: seller’s reason for selling and any contingent obligations that would transfer with the sale. Engage a CPA, an attorney, and an early-childhood consultant to analyze the information, identify risks, and plan a smooth transition. #referral #schedules #balance #background #records
