Wee Folk Early Learning Center and Early Learning Center
Industry
Location
Business Broker
Situation
Connect United, Inc., a multi-ministry organization that stewards connection through Connect Church, Connect Caribbean Mission and MetroWest Christian Academy, decided to sell two childcare centers it owned that were not affiliated with the Church or its mission. Connect United owned Wee Folk Early Learning Center in Bellingham, MA since 1984 and Early Learning Center (ELC) in Grafton, MA since 1996.
In 2025, Connect United completed an online search to find a business broker to manage the sale of the two large childcare centers and real estate. Through the search, Connect United found BayState Business Brokers and Molly Hanson, offering vast experience in the childcare industry.
Molly initially met with members of Connect United’s board of directors to learn more about their goals for selling each center. In parallel, Connect’s corporate attorney discovered the board was speaking with Molly to broker the deal and added his recommendation as he had worked with her on another successful business transaction.
BayState Business Brokers’ Approach
Selling two childcare centers and real estate owned by a non-profit organization adds complexity including valuation of each childcare center and associated real estate to prepare the Confidential Information Memorandum (CIM) and take the childcare centers to market. The CFO of Connect was highly effective offering well-organized financials to enable the spinout of the two centers and real estate from the non-profit organization. This, combined with the corporate attorney’s experience in carve out transactions, was essential to determine the valuation and launch the marketing of the two centers with unique real properties.
Molly’s strategy to bring the two large childcare centers to market was to conduct a limited auction focused on a select group of strategic buyers. With significant experience in the childcare industry, Molly identified a list of targeted strategic buyers based on the seller’s goals which stressed the importance of cultural fit. It was important to the sellers to secure new owners who would continue the high operational standards in place and the importance of caring for the existing staff and families.
Business Broker Molly Hanson facilitated two back-to-back days where a number of prospective strategic buyers toured the centers and presented their proposals. This process enabled the leaders of the non-profit to efficiently compare prospective buyers. A debrief meeting was then facilitated by Molly to focus on a short list of the top two prospects. Hanson assisted the owners in carefully evaluating each prospective buyer, selecting a buyer with deep industry experience and local knowledge.
With a buyer selected, the process proceeded to financial due diligence, adeptly led by the CFO who both seller and buyer recognized for the effectiveness of the process. As is the case with any sale of childcare centers, the regulatory and licensing processes are typically onerous and in this case, was doubled in effort with the sale of two childcare centers. The Executive Director was instrumental throughout the sale, but especially for managing and spearheading licensing and regulatory requirements up to the close.
Results
A group effort by experienced professionals resulted in enabling a complex transaction— two childcare centers with real estate carved out by a non-profit organization—to proceed and close successfully. The seller and its board were happy to achieve their goals while having the peace of mind of successfully completing the divestment of non-mission aligned businesses through a competitive process. They were confident the selected buyers were a strong cultural fit and would serve both the staff and the families of each childcare center.
The buyers achieved their goals by acquiring two large childcare centers with strong reputations and community presence and existing staff that they were happy to retain.
