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Exit-readiness check · Singapore

Is your education business ready to sell?

Ten questions a buyer's accountant and lawyer test before they put a number on a childcare, tuition or enrichment business. Answer honestly rather than optimistically, and you will get a score out of 100 and the three gaps worth fixing first. About three minutes, no email needed.

0 of 10 answered
Could the business run for three months without you?
01

Could the business run for three months without you?

Why buyers ask this

This is the largest single discount buyers apply. If parents, staff and suppliers all deal with you, a buyer is pricing in the risk of you leaving.

Do you have three years of financial statements that reconcile to your bank and IRAS filings?
02

Do you have three years of financial statements that reconcile to your bank and IRAS filings?

Why buyers ask this

Three years is the standard look-back. Figures that need explaining get discounted, or stall due diligence.

Is there a principal or centre manager (not you) who would stay after a sale?
03

Is there a principal or centre manager (not you) who would stay after a sale?

Why buyers ask this

Buyers pay for continuity. A leader who knows the families, the teachers and the regulator reduces the risk of the handover.

Is enrolment at 85% or more of capacity, or do 85% or more of students re-enrol each term?
04

Is enrolment at 85% or more of capacity, or do 85% or more of students re-enrol each term?

Why buyers ask this

Full classes and high re-enrolment are what buyers believe will continue. Empty places and churn are priced as risk, not upside.

Has profit been stable or growing over the last three years?
05

Has profit been stable or growing over the last three years?

Why buyers ask this

Buyers price on earnings they believe will continue. A falling trend in the year before a sale pulls the multiple down, and often moves part of the price into an earn-out.

Does your lease have at least two years left, with landlord consent to a new owner likely?
06

Does your lease have at least two years left, with landlord consent to a new owner likely?

Why buyers ask this

A short lease, or one that cannot pass to a new owner, can cap the price or stop a deal late.

Are your licence or registration (ECDA, MOE) and premises approvals (HDB, URA) current, with no open issues?
07

Are your licence or registration (ECDA, MOE) and premises approvals (HDB, URA) current, with no open issues?

Why buyers ask this

Approvals decide whether and how the business can change hands. Gaps found in due diligence lead to price cuts, conditions or a failed deal.

Does every teacher, including you, bring in less than a quarter of revenue?
08

Does every teacher, including you, bring in less than a quarter of revenue?

Why buyers ask this

When families follow one teacher, a buyer discounts the price or ties part of it to that teacher staying.

Are personal and business expenses separate, with deposits, prepaid fees and CPF records up to date?
09

Are personal and business expenses separate, with deposits, prepaid fees and CPF records up to date?

Why buyers ask this

Add-backs only count if a buyer can verify them, and deposits and prepaid fees are settled at completion. Loose records lower the profit a buyer pays a multiple on.

Do you know what you want from a sale: a price range, timing, and your role afterwards?
10

Do you know what you want from a sale: a price range, timing, and your role afterwards?

Why buyers ask this

Owners with clear goals negotiate better and choose the right buyers. Unclear goals are a common reason deals drift and fail.

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How it is scored

Weighted the way buyers weigh them

Each question carries points in proportion to how much it tends to move price and terms in a real sale. Yes scores the full points, Partly scores half, and No scores none. Dependence on you carries the most weight, because it is the largest single discount buyers apply.

What buyers testPoints
Could the business run for three months without you?15
Do you have three years of financial statements that reconcile to your bank and IRAS filings?12
Is there a principal or centre manager (not you) who would stay after a sale?10
Is enrolment at 85% or more of capacity, or do 85% or more of students re-enrol each term?10
Has profit been stable or growing over the last three years?10
Does your lease have at least two years left, with landlord consent to a new owner likely?10
Are your licence or registration (ECDA, MOE) and premises approvals (HDB, URA) current, with no open issues?10
Does every teacher, including you, bring in less than a quarter of revenue?8
Are personal and business expenses separate, with deposits, prepaid fees and CPF records up to date?8
Do you know what you want from a sale: a price range, timing, and your role afterwards?7

80 to 100: Ready to talk to buyers

Your business shows the things buyers pay for. The remaining gaps are worth closing, but they are unlikely to stop a sale. A proper valuation and a quiet, well-run process are the next steps.

60 to 79: Nearly ready

The foundations are in place, but a few gaps would likely cost you on price or terms. Most owners in this range benefit from three to twelve months of focused preparation before going to market.

40 to 59: Worth preparing first

A buyer would find enough here to discount the price or push part of it into an earn-out. Twelve to twenty-four months of preparation usually adds more value than selling now.

Below 40: Early stage

Today a buyer would be paying mainly for you. That is common, and fixable. Starting two to three years ahead gives you time to build a business that sells for what it is worth.

Questions owners ask

Look at it the way a buyer will. Could it run for three months without you? Is there a principal or manager who would stay? Are three years of accounts clean and reconciled? Are classes full and families re-enrolling? Will the lease, licence and premises approvals pass to a new owner? If most answers are yes, you are close. If not, the gaps are usually fixable with one to three years of preparation.

Ideally one to three years. That is enough time to step back from day-to-day running, tidy the accounts, extend the lease and build a record of steady enrolment, all of which buyers pay for. Owners who start early tend to sell on better terms, with more of the price paid at completion.

Dependence on the owner is the largest single discount buyers apply: an owner who is also the principal or the main teacher. After that come low enrolment or re-enrolment, a short lease, licence or premises approvals that may not transfer, a falling profit trend and accounts that do not reconcile. Each one either cuts the multiple or moves part of the price into deferred payments or an earn-out.

No. It shows how a buyer is likely to see your business on the points they test hardest, and where to focus first. For an indicative range, use the valuation calculator. For a number you can act on, we offer a written valuation for a fixed fee, credited against our success fee if you sign with us within 6 months.

Not ready to sell yet?

Many owners come to us one to three years early, and they are the ones who sell best. We show you how a buyer would read your business today and what would make it ready. The first conversation is free and confidential.

WhatsApp Ben →Book a confidential call

ben@edugrow.sg · +65 8088 1201 · All enquiries are confidential.