Leah Turner, co-founder of Owen Froebel, which offers day nursery brokerage, valuations and sales, on why you should tell your accountant about plans to sell your setting.
If you are considering selling your day nursery, confidentiality is key.
The likelihood is that you have been working with your broker to prepare the business for sale, but you should also consult your accountant in good time before you start talking to buyers. Early involvement allows your accountant to:
- Prepare clean financial records. Your accountant can ensure your books are clean, accurate and professionally presented.
- Maximise business valuation. By analysing trends in profitability, occupancy rates and staff costs, your accountant can identify areas for improvement that might boost valuation.
- Ensure tax efficiency. Selling a business has significant tax implications. Your accountant can advise on how to structure the sale – asset sale vs. share sale – for optimal tax outcomes.
When informing your accountant of your intention to sell, you should also outline what you need from them. Here are key tasks to plan:
- Up-to-date accounts. While the deadline for the taxman may be ages away, a lender would expect full accounts within six months of the year end.
- Review and recast accounts. Have them adjust the accounts to best support the business for sale. This may mean splitting out individual settings within one limited company accounts. TOP TIP: If you run several settings through one limited company, this is much easier if you start doing this as standard a few years before sale.
- Provide tax planning advice. Ask them to review potential tax liabilities and available reliefs.
- Assist with due diligence.
- Co-ordinate with other professionals.
Selling your nursery is complex, but with your accountant's proactive support, you will be well-positioned for a smoother sale and stronger financial outcome.
