This blog concludes our series on the “3 Major Risks” in the industry school operators are now facing with their businesses.  This business risk is, of course, unlike the first and second risks in that it is not new to the industry. However, this dramatic increase in new school locations is happening in a period…

A long-time contact within the industry who operates two schools recently asked Bailey Routzong to look over her last year’s profit and loss statement for her business, something we have periodically done for her over the years. The last time we did a full business and real estate valuation for her was some three years…

In a recent poll by the National Association for Business Economics, 72% of economists predict a coming recession in the U.S.  Further, 34% predict 2020 as a period when such a recession would begin, with 38% predicting it would occur in 2021.  Also, in the last two weeks, the 30-year U.S. Treasury bond interest rate…

This is the third blog in our series on the “3 Major Risks for School Operators,” which focuses on the second major risk: governmental regulation rapidly increasing school operators’ costs, resulting in profit margins being squeezed downward along with operators’ business and real estate asset values! This trend in governmental regulations started off big several…

A previous blog summarized our new series about the “3 Major Risks for School Operators” that Bailey Routzong sees in today’s early childhood education marketplace. That first risk is rapidly expanding competition for school operators from none other than the school owners’ own local and state governmental entities. Preschool operators across the U.S. are being…

From new school development and franchising companies to changes in minimum wage legislation, several marketplace factors can impact the value of an owners’ business and related real estate assets. The key for any school operator is to not only stay informed on the positive and negative factors impacting the industry but to be proactive in…

Before Bailey Routzong was founded in 1994 by Ed Routzong and Dean Bailey, the school industry was significantly different for owners when they were ready to exit their business. At that time in the industry, school owners were limited in terms of potential buyers for their business, as the larger companies in the school operating…

When should I sell my school business? Can I afford to sell my business? How can I make sure I receive the maximum value from the sale of my business and related real estate? These are the questions many school business owners consider as they near retirement. Bailey Routzong is hard at work helping prospective…

The U.S. childcare industry is prospering, but with that comes increased competition for school business owners and operators. The Committee for Economic Development recently found that the U.S. childcare industry has an economic impact of $99 billion. Additionally, school businesses are predicted to have some of the fastest employment growth of all industries through 2020,…

If you own a successful family-owned school business, chances are that you have, or will, encounter private equity groups (PEGs) that are interested in acquiring your business. From marketing letters and emails to direct phone calls, these PEG funds often try to contact school owners with the single purpose of purchasing their business. The industry…

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