How to Sell a Remote Learning Company
The COVID-19 pandemic has shifted education from in-person classrooms to remote learning. Remote learning companies provide skilled instructors and apply technology to deliver education. Consider these examples:
Chegg: This site provides online tutors for high school and college subjects, using both chat sessions and video calls.
Etutorworld: Delivers tutoring to the K-12 market, including ACT prep. The company’s tutors create a personalized study plan, using diagnostic assessments.
Tutor.com: This company is a division of the Princeton Review, and delivers individual tutoring on a number of subjects.
A valuable remote learning company includes qualified instructors and technology that makes the tutoring delivery run smoothly. Increasing demand makes these online businesses more attractive to investors.
If you’re interested in selling your remote learning company, use a business broker to help you throughout the process. Once you find an experienced broker, explain your business and what makes your company valuable.
Starting the Process
Why are you selling your business? Managing a remote learning company is challenging because you have to retain great instructors, and also manage the expectations of your students. Some owners want to sell because of burnout.
On the other hand, you may decide to sell during a period of high demand for online remote learning companies. You enjoy the company, but you’re willing to sell at the right price. Help the broker understand your motivation for selling.
If you’re managing a profitable and growing business, you’re doing something right. Your company meets student expectations, and you generate business from referrals. A broker can help you dig deeper to uncover your value proposition. Here are some examples:
Niche market: Let’s say that you’ve developed a niche tutoring business covering high school math topics. Your tutors are effective, and you drive repeat business from students. Word gets around, and you receive lots of referrals.
Ease of use: Students who need tutoring may feel anxious, and you provide an attractive website that’s easy to navigate. Users can find a tutor and book a tutoring session easily using your site, and your technology adds value.
Trust: You treat students fairly by providing qualified instructors at a reasonable price. Your clients believe in what you offer, and they trust you.
Once the broker understands your value proposition, he or she can create marketing content that explains your business to potential investors.
Finding potential buyers
Many owners attempt to sell the business on their own and become frustrated. They can’t find qualified buyers, and they waste time with people who don’t have the financial resources to make an offer.
Brokers have networks of various types of vetted buyers who have the financial resources to purchase a business. You’ll have far more success in finding qualified buyers if you work with a broker. Let the broker search for the right buyer so you can focus on operating your business.
Managing due diligence
When the broker finds a qualified purchaser, you and your broker may decide to start the due diligence process. A broker will have the buyer sign a non-disclosure agreement before any documents are shared.
Due diligence can be frustrating, because the potential buyer may ask for additional documentation. You’ve already invested time and effort to put together this information, and added requests require more time. Your broker will handle any additional requests on your behalf, and explain why you should supply more documents.
Computing a business valuation
You need a business valuation for your remote learning company, based on industry standards. The brokers at Raincatcher can provide a market opinion of value or a certified business valuation prepared by an accredited valuation appraiser. This type of valuation eliminates the risk of bias and subjectivity and reflects your company’s true worth.
The broker will use the valuation as a basis for negotiating the sale price. Raincatcher’s brokers use their years of experience to secure an attractive price for your business.
Find your trusted advisor
You’ve worked hard to build a successful business, and the sale may be the largest financial transaction you will ever complete. Raincatcher will be your trusted advisor from the time you decide to sell until the sale closes.
Our experts will free up your time, so you can focus on running your company. Brokers understand the anxiety and emotions that come up during a sale negotiation, and they will keep the process on track. Talk to a broker from Raincatcher today, so you can sell your business with peace of mind.