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Governments all over the world are advocating education for all, and indeed the number of schools around has increased in recent years, but owning a school is rarely ever thought of as an investment option for established businessmen and women that are looking to buy a new business. Despite that, buying a school for sale should indeed be a possibility that you can look into. Schools are highly profitable and do not require any direct involvement from the owner and so are the perfect additions to the portfolio of any investor that wants to take a back seat in any new investments. The following tips on buying a school for sale should give you an idea of what is involved.

Profitability
The number of schools around the world has risen in recent years and the majority of new additions are private schools. As parents believe that private schools are often better than public or state schools, many are prepared to pay extortionate fees in order to ensure that their child or children receives the best education possible. As such, buying a school is actually extremely lucrative. They also bring a reliable source of income that is as predictable as it is steady because the school will accept a set number of students every year. As such, you can predict to the penny what return you will receive on your investment, with possible yields of between 12% and 25%.

You should expect to pay $2 million plus for a good school for sale. This is a solid investment because each student may pay $2,000 plus tuition a semester. You could pick up a profitable school for $1 million but this would not give the same profitability that a more expensive school does. The general rule is the better the reputation the higher the price, and a larger initial investment is likely to reap much better rewards. A good accountant can confirm the level of profit expected by examining the accounts for the last five years, but you should hire a lawyer to examine the legal status and local reputation of a school, although you can do the latter yourself.

Rules And Regulations
The rules and regulations of any school for sale will be more stringent than those associated with any other business so you should involve a good lawyer to examine the paperwork from any recent inspections. Every school is legally required to have health and safety inspections at least once a year and measures will be in place to vet all employees in terms of their performance and personal behaviour as well. If the school for sale withholds any papers from you then you should look elsewhere. Although they are legally obliged to provide potential buyers with all records, withholding information is indicative of something untoward.

Of course, some schools have local or national laws to conform to as well as a legal responsibility to implement any measures required by inspection staff in the past. Your lawyer will be equipped to advise you of any legal requirements.

The Administration
Good schools for sale should already be established and be held in good esteem by locals. It is possible to improve on that further but the groundwork should be there already if a school is to be a good investment and require little additional financial input. A good school for sale should also have good staff on board, including the necessary headmaster and heads of departments. As such, there should not be much to take care of in terms of initial recruitment so the administration can be kept to a minimum.

Although the tips on buying a school for sale above are useful, the most valuable tip is regarding the decision of whom you will go through to buy a school. You can indeed probably complete the transfer yourself, complete with lawyer and accountant on board, but there are transfer systems that you can go through. However, avoid using a broker if you cannot find a specialist one because the process for buying a school is a little different to a traditional business.