Daycare Center Business Appraisal


As an integral part of the first stage of the selling process, the valuation of the business, not to be mistaken with valuation of the commercial real estate property, is one of the most important issues. It is highly recommended that sellers obtain a third-party Business Appraisal from a well-respected Business Appraisal firm. A Business Broker / Intermediary should not be the one to appraise the business and they are typically not credentialed to do so as generally required by most lenders. Even if they feel that they are qualified, a broker's own Business Appraisal can create doubt in a buyer's mind.

The most important issue to understand is that regarding credibility and believability with potential buyers and lenders.

Credibility and believability with buyers is an issue when the seller's broker is the one who has appraised the business. They sometimes see the interests of the seller being placed in front of their own. Often, a Business Appraisal from a third-party Business Appraisal firm reduces or completely eliminates this issue.

Experienced and successful professionals in the Business Brokerage industry, specifically those who specialize in the sale of Daycare Centers, know this is generally the key to maximizing and credibly justifying the selling price of a Daycare Center, eliminating the largest portion of frustration and disappointment, and saving all parties involved a great deal of generally expensive time. While most sellers believe that their Center is worth more than what actual market value is, there are many instances in which sellers receive less for their Centers than they should. An Appraisal from a well-respected, third-party business appraisal firm creates credibility and believability with buyers and lenders while at the same protecting and maintaining the seller's interest in his/her investment.

If the seller waits until the buyer hires the appraisal firm to appraise the Center, then it is in the buyer's best interest to obtain a Business Appraisal on the Center that is as low as possible. Likewise, waiting for the lender to require an appraisal will only delay the entire process. Therefore, since an Appraisal will probably be performed sometime during the selling process, it is in the Seller’s best interest to obtain a Business Appraisal in the beginning stages, not after the Center is marketed to buyers. Additionally, it is critical that sellers realize and understand that most lenders and federal loan guarantors, especially the SBA, require a third-party Business Appraisal.

As previously mentioned, we use what many believe to be some of the most respected Business Appraisal firms on both a local as well as national basis. We have established relationships and a history of doing business with these Business Appraisal firms and have several optional plans for our clients who are considering obtaining a Business Appraisal. Business Appraisals range in price from around $2,000 to over $8,500. However, they generally average about $2,000 to around $3,500 depending on many factors.

Contact us for more information regarding Daycare Center Business Appraisals.


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