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Frequently Asked Questions General |
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Q. What it is a PDF file?
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A PDF file is a file format used in documents on the Internet. It is a format which can be read by anyone who has an up-to-date version of Acrobat Reader. The latest version of Acrobat reader can be obtained free of charge from Adobe.
PDF files are used extensively on the Child Care Sales Australia website. If you are having trouble opening a PDF file, ensure you have an up to date copy of Acrobat Reader. If you’re still finding the file is not opening, please be patient as most files contain photos, and may take several minutes to load. |
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Q. How do I get details of new opportunities?
A.
Whether it be a leasehold or freehold, investment or ownership property, we’ll keep you up to date of opportunities in any area you’re looking, around Australia and
New Zealand.
If you are already receiving regular emails and newsletters from us then you are on our database. Immediately a new child-care centre investment freehold or business becomes available we will email the preliminary details to you.
This way you are constantly alerted when a new property or business is for sale on our website.
If you are not on our database please register for the E- Newsletter. |
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Q. Webmasters
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Child Care Sales Australia is proud of its tradition of sharing information within the industry. If you believe you have a product or service, association or group that would be of interest to our clients, and add value to their business, give us a call on 07 3218 2765, or email our Manager, International Business and Marketing Operations. |
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Frequently Asked Questions Buying |
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Q. I am new to child care. Is there any general information which may be of help to me?
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For further information we recommend you contact the Child Care Owners Association in your State or Territory, or the State or Territory you intend to buy in. Most State Associations have informative annual conferences and offer regular training days for prospective child care owners – an invaluable resource for a new owner. You will find links to all Australian State and Territory Associations by clicking here.
These associations offer help to new entrants to the child care business and it is a good idea to contact them before you buy a child-care centre.
The Commonwealth Government website is also an invaluable source of information. You can visit Family Assist by clicking here. Family Assist deals with child care and the child care subsidy known as Child Care Benefit. Child Care Benefit is paid by the Commonwealth Governments to parents with children attending long day-care centres.
All State and Territory Government control licensing, staff ratios and qualifications, building and playground requirements.
More useful Web Site Links can be found on the Links Page. |
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Q. How much will my bank lend me to buy a child care centre?
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The larger four Australian banks, as a guideline, are willing to lend 40% of the purchase price of a leasehold child care centre and 60% on a freehold child care centre.
Child Care Sales Australia though, has access to lenders throughout Australia and overseas willing to lend up to 100% Finance (provided there is adequate other security ) for most child care freehold or business opportunities.
Click Here to go to our Finance Page and complete a no obligation Finance Enquiry Form and one of our trained affiliates will get back to you immediately. |
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Q. What return can I expect when I buy a child care centre?
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The return you can expect depends on a number of factors, not the least of which is whether the opportunity is a leasehold child care business, or a freehold child care centre, and whether you are buying both the buildings and/or the business.
When buying a leasehold child care centre with a fairly long lease, say 12 to 20 years, you could expect a return of 16% to 25% of the purchase price.
The return on a freehold child care centre would generally be in the range of 14% to 20%.
Many factors influence the Return on Investment (ROI) such as age, occupancy, location, growth prospects etc
I hear people refer to a "factor" or "multiple" of net profit to purchase price when assessing the price and ROI, what does this mean? Simply if the profit after all appropriate adjustments is $200,000 per annum and it sells for $1,000,000 then the ROI is 20% or a factor of 5.
The returns listed on this website do not include management fees, or owners wages for administration. Net profit is referred to as Proprietors Earnings Before Interest Tax Depreciation and Amortisation (PEBITDA).
Child Care Centres offered for sale are often quoted on a "Price Per Licenced Place" basis. This is a rough rule of thumb but like most decisions of a buyer or an investor the important thing is profit. The profit is strongly influenced by average occupancy and the fees charged per child.
If you have any questions please call Kevin Stapleton on 0409 878352. |
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Q. What is the usual settlement time of a contract?
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At Child Care Sales Australia, our first priority is to settle all negotiations quickly and efficiently. A typical contract may allow 30 days for due diligence and finance if it is required. A further 30 to 60 days is then allowed for transfer of the child care centre licence. |
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Q. What is due diligence?
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Due diligence is the contractual terminology used to define the process by which a buyer gains access to detailed financial and other records such as the lease, to determine the suitability of the investment |
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Q. Do I need a suitability card?
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Before obtaining a transfer of any child care licence you are required to obtain a suitability card appropriate for the State or Territory in which the child care centre is located. Child Care Sales Australia recommends you apply for a suitability card immediately as it can take several weeks for your application to be processed. Your application for a licence transfer will be delayed if you do not have a suitability card.
We would recommend that if you are serious about purchasing a child-care centre business that you obtain a suitability card before entering into a contract. This will expedite the transfer of the business |
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Q. Are their professional management companies who will manage the centre for me?
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In a simple answer - yes. Specialist child care management companies are available throughout Australia. Companies offer management schemes including the total management of the centre and the business including staffing, subsidy report claims and the general running of the centre.
All reputable companies will ensure you receive regular financial and occupancy reports. If you’re looking for someone to manage your centre, take a look at Child Care Management section Links.
Management charges will depend on the number of licensed places and the location of the child care centre. |
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Q. Do I have to agree to a Confidentiality Agreement
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Yes. All potential buyers are required to sign a detailed, tailored Confidentiality Agreement in order to view any confidential information, or information that may lead to the identity of the child care centre for sale.
We would appreciate it if you could complete a Disclaimer, Acknowledgement and Confidentiality (DAC) Agreement for any property you are interested in although you may have completed Agreements for other properties previously.
This is to honour commitments to the vendor that we will obtain agreements specifically for their property.
The Agreements have been made as user friendly as possible - no printing or faxing required. A simple on screen form only.
After submiting and Agreement you will receive an email inviting you to contact the concerned broker to obtain details to access the confidential Information Memorandum file. |
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Frequently Asked Questions Selling |
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Q. Why choose Child Care Centre Sales Australia to market my child care centre business or property?
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Quite simply, Child Care Sales Australia are the largest child care property and business brokerage in Australia and an increasing presence in New Zealand. Dedicated exclusively to the sale of leasehold and freehold child care businesses, land for child care centres, and child care property investments.
With an extensive data base of qualified waiting buyers, we can often find a buyer or investor from within our existing database of buyers, with no need for expensive and timely print or other forms of advertising.
Child Care Sales Australia are proudly associated with all four of ’s largest banks and every Australian Child Care Centre Owners Associations. With satisfied clients and the industry claiming Child Care Sales Australia are the brokers to do business with, let us show you how to take the hassle out of your next transaction.
Our primary objective: to work in an honest, ethical and professional manner while maintaining the highest achievable sale price for you.
When you sell with us we will provide, at no cost to you:
1. The professional marketing of your property to our extensive database, targeted corporate advertising in child care industry journals and print advertising throughout.
2. Listing on three internationally renowned commercial business websites, containing preliminary details of your property.
Note that property information files containing addresses and confidential information is only made available to buyers following the signing of a detailed Confidentiality Agreement.
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Q. Will you request potential buyers to agree to a Confidentiality Agreement?
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Yes. All potential buyers are required to sign a detailed, tailored Confidentiality Agreement in order to view any confidential information, or information that may lead to the identity of the child care centre for sale.
After submitting and Agreement the potential buyer will receive an email inviting them to contact the concerned broker to obtain details to access the confidential Information Memorandum file.
We understand the need for confidentiality with staff and parents. |
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Q. Do I need to sign an agency agreement?
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Child Care Sales Australia requires a signed agency agreement by law, and cannot commence marketing a property until an agency agreement is signed by the vendor.
Child Care Sales Australia market properties on an Exclusive Agency basis only, for a minimum period of 120 days.
Childcare Sales Australia use industry standard agency agreements whether it is for a business sale or a freehold sale. |
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