What should I check before buying a kids coding or robotics school?
Before buying a kids coding or robotics school, check enrolment and re-enrolment by term and age band, whether the curriculum and software accounts are owned or only licensed, the count and condition of kits and laptops, how many instructors can teach without the owner, and how much income comes from camps rather than terms.
A coding or robotics school sells a repeating program to families, so ask whether children come back. The equipment and the content matter too, because they are what a new owner must keep running. Ask for records under a confidentiality agreement, and have your accountant review the financial statements alongside the enrolment figures.
Enrolment and re-enrolment
Ask for enrolment by term and by age band for several years, plus how many children moved up to the next level or left. A school that holds students as they age is different from one that refills the youngest classes each term. Look at the sources of new families, and whether they came from referrals, schools or advertising the owner pays for.
Curriculum, software and equipment
Find out who owns the lesson plans. If the school is franchised or uses a licensed program, ask whether the licence continues after a sale. Check that software and learning-platform accounts are in the business’s name, not the owner’s. Count the robotics kits and laptops, note their age and condition, and ask what replacement costs the school has faced.
Instructors and income mix
If the founder teaches most classes, the school may not be easy to hand over. Ask who else can lead each level, how instructors are hired and trained, and whether any are likely to leave. Then split income between regular terms, summer and holiday camps, and other work. Camps can fill a gap, but they depend on school calendars and are seasonal.
What to line up next
- The lease or host-site arrangements, reviewed by your lawyer.
- Instructor agreements and any background checks the school requires.
- Waivers, insurance and incident records.
For host-site agreements, see how to check a STEM business’s school and community centre contracts.
Related reading
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Selling
Sources
This answer is checked against primary sources. Links were last confirmed on the dates shown.
- 01Business Development Bank of CanadaGovernmentHow to conduct due diligence when buying a business
- 02Business Development Bank of CanadaGovernmentWhat are the steps to buying a business?
- 03Business Development Bank of CanadaGovernmentWhat are financial statements?
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