- The Ecential
- Posts
- Pilgrims & IPOs? USA!
Pilgrims & IPOs? USA!
Why Private Equity Wants To Buy Your Business!
đ¶ You need some feel good news: So meet Sander and Hero, two therapy dogs who have been specially introduced into schools to support students' well-being. Sander works with students at Hancock Central School in New York, where his warm, calm demeanor helps children feel less anxious, more focused, and more connected.
Meanwhile, across the ocean in Northamptonshire, England, Hero plays a similar role, bringing comfort and emotional support to students, enhancing their ability to learn in a nurturing environment. The impact of therapy dogs like Sander and Hero goes beyond academic outcomesâthey also help students develop empathy and a sense of responsibility, making the school a more inclusive and welcoming place for everyone.
Bonus Feel Good: In honor of Veterans Day and all of our military veterans who sacrifice so much for our country!
INDUSTRY NEWS TO KNOW
KinderCare (KLC), You can now own KinderCareâŠâŠâŠwell kind of! KinderCare hit the public market in October which means you can now buy shares of the largest child care provider in the world! If you canât beat âemâŠ..buy some shares!
Bright Horizons, Another child care industry giant has a market capitalization of 6.5 Billion (With a B) and recently reported their Q3 earnings. You may not be Warren Buffet so weâll summarize: Bright Horizons had a huge quarter and is having a great year financially. Does their 2024 reflect the industry as a whole?
Hinge Brokers, Hingeâs very own Kathy Ligon has been an industry advocate, thought leader, business owner, and speaker for many years. She can now add published author to her list of accomplishments. Itâs been a few years, but we like THIS podcast that Kathy did on the Child Care Business Podcast where she talked about the 5 Pillars of operating a successful child care business.
Know Your Numbers: The child care industry is a unique mix of independently owned centers, nonprofit organizations, and corporate chains. Recent estimates show that about 5-10% of child care centers in the U.S. are part of large corporate chains. This means that the vast majorityâaround 90%âof the early childhood education (ECE) industry is made up of small business owners, just like you!
But did you know that large financial institutions, private equity firms, and other financial organizations have increasingly targeted ECE businesses as a profitable investment? It might seem surprising, especially since so many independent child care owners are struggling. Why are professional investors pouring money into child care, and what insights do they have that you may not?
This detailed article from Early Learning Nation provides a comprehensive look at this trend, offering both information and perspective on why private investors see child care as a promising venture. We believe itâs a worthwhile read because, for independent child care owners, the future of this industry demands more than compassionate, high-quality careâit calls for strong business skills and a strategic approach.
Why are investors attracted to your ECE business? Here are a few of the key reasons:
Resilient Demand: Child care and early education have proven relatively resilient to economic downturns, as working parents still need reliable care.
Scalability: Larger PE groups often consolidate smaller operators, building regional or national networks that benefit from economies of scale.
Social Impact: There's also an appeal to investing in child care due to its social impact, as quality early education is linked to long-term benefits in society.
Growth Potential: The demand for child care continues to rise, particularly with increased workforce participation and changing family dynamics, creating room for growth.
Recurring Revenue: We come from the software business where MRR and ARR (monthly recurring revenue and/or annual recurring revenue) are king! Investors love businesses where customers are paying a monthly recurring fee (Tuition)!
Valuable Real Estate: Many child care centers are located in prime real estate areas. Investors see a dual benefit: the operational revenue from the child care business and potential property appreciation.
In our next issue weâll explore some practical, common, and available ways for independent owners to approach the business in the same way these large investors do.
ON THIS DATE: November 19th
1863 â Lincolnâs Gettysburg Address: President Abraham Lincoln delivered the Gettysburg Address at the dedication of the Soldiers' National Cemetery in Pennsylvania. This brief but powerful speech became one of the most famous in American history, emphasizing liberty, equality, and democracy.
1928 â Mickey Mouseâs Debut: The iconic Disney character Mickey Mouse made his first appearance in the animated short Steamboat Willie on November 19, 1928. Fun fact: He wasnât originally called MickeyâWalt Disney first wanted to name him âMortimer Mouse,â but his wife thought âMickeyâ was catchier.
1990 â Milli Vanilli Stripped of Their Grammy: The pop duo Milli Vanilli had their Grammy revoked on this date when it was revealed that they hadnât sung any of their hit songs. The scandal rocked the music industry and became a running joke for years. Maybe they should âBlame it on the Rainâ.
THE BIG IDEA
Creative Writing Corner:
Once a month, weâre handing over the spotlight to you creative geniuses out there! Got a story, poem, or hilarious anecdote just begging to be shared with the world? Send it our way! Just email us at [email protected], and who knows? You might just be the reason someone laughs, cries, or double-checks their coffee before they spit it out in surprise. Let the fun (and maybe a little chaos) begin!
Here is a beautiful piece called âThe Pilgrimâ written by my favorite creative writer, Mrs. H!
I am just a pilgrim, slowly passing through. And yet, I hear a voiceâalways beside me, always within meâinviting me to build a home here.
"But I only have this," I say, offering out into the air the little I possess. Cloth wrapped around the few things that haven't faded to meaningless dust like all the rest, long ago.
"Let me see," the voice, like water, says.
Slowly, I undo the wrapping, trembling. What if I lose this too? The last binding falls away, revealing the small handful of seeds I hold.
"Give them to me, back into the earth where they belong." Silence follows, a stillness so deep that even my gentle breaths disrupt it.
"But what if they don't grow? I don't even know what kind of seeds they are. What if they won't flourish in this soil?"
"Touch the soil; it is ready. Trust me, there isnât a better time than now."
The voice isnât angry at my hesitation. It simply invites me to trust, always encouraging me to expand my horizons. So, I get on my hands and knees, right where I am, and plant the little I have.
"I will send rain," says the voice, and it is a promise. But two days after planting, I am still waiting for rain.
"I am just a small pilgrim. I donât need to know anything you donât wish to tell me, but when will it rain?" My question doesnât startle the voice; I sense it turn toward me, this presence, like the wind. It could even be the wind, I, the little pilgrim, think.
"Donât worry," the voice says, gentle and warm. So I wait, trying not to worry.
Later, the rain comes. I watch it roll toward me, clouds like an entire kingdom, like a herd of wild horses galloping closer and closer. And then it rainsâfirst a sprinkle, then a downpour, until everything has been touched by the rain.
"What if they drown?" I shout, looking down into the dark earth. Iâd rescue the seeds if I could.
"Donât worry. The little youâve given is now mine, and it also hears my voice."
"I donât understand what this is for. Iâm so small, and I donât understand."
"I know."
"What does this have to do with building a home here?" my heart cries out.
"You will need a forest to build your home with."
Mrs. H
RECOMMENDED READING
đŽ Hall of Famers? My Little Pony & The Transformers were inducted into the National Toy Hall of Fame last week! They join legends such as Barbie, Crayola Crayons, Etch A Sketch, Play-Doh, and 81 other all time classics!
đș Arctic FoxâŠ.: Itâs not every day you see an arctic foxâŠâŠâŠ.in Portland, Oregon, but this little guy made headlines last week when dozens of concerned citizens rallied to help rescue him.
YOUR VOICE COUNTS
Is there a topic you want more info on or want to share a funny story? Then let us know! Shoot us a quick email at [email protected]. This newsletter is for you, and well, you should have a say, don'tâ you think?
HELP US GROW
Enjoying The Ecential? Have some friends or coworkers that should be âin-the-knowâ?
Share the newsletter with them!
(Click the button and share the landing page)
What did you think of today's issue? |