1. Structuring your investment and realising value
Structuring your investment and realising value
November 2016
Tamara Brown and Amar Jassal

2. Agenda 1. Structuring your childcare business (Tamara Brown)
2. Realising and maximising value (Amar Jassal)
3. Questions
Structuring your investment and realising value
November 2016

3. 1. Structuring your childcare business
Structuring your investment and realising value
November 2016

4. Structuring your childcare business
Key objectives when structuring 01 02
Asset Protection
Tax effective
- Protects you, your family and other assets in the case of a claim.
Throughout life of investment
On an exit event
Optimal structure 03 04
Exit readiness
Provides for growth
- Provides for a clean exit on a future sale
- Ability to expand and grow your business
Structuring your investment and realising value
November 2016

5. 2. Realising and maximising value
Structuring your investment and realising value
November 2016

6. Value in your childcare business
Key financial value drivers
Revenue
Operating costs
Tax
- Pricing & Elasticity
Quality of offering
Occupancy & retention
Local area capacity and competitor offering
Metrics per licensed place
Demographic and socio-economic factors (numbers of children, working and lifestyle patterns, economic factors)
Price
Available places
Occupancy
Financial Model
Employee costs
NQF ratios / Mix of age groups
Director tenure
Property costs
Centre locations and size / type (conversion / purpose built)
Contractual arrangements with landlords
Centre overhead
HQ costs
Operating structure
EoS available
Additional services that can added
Structuring your investment and realising value
November 2016

7. 3. Questions Structuring your investment and realising value
November 2016

8. Thank you for your time...
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