I have been teaching for more than ten years, and part of my work included managing education centres. I decided to quit the job and started my own business, hoping to leverage my knowledge of teaching and school management.
I’m aware that applying for respective licenses to operate an education centre, from my years of experience, is a lengthy and costly process. School renovation is the most time-consuming and uncertain factor of the project, and it’s illegal to operate before the license is granted. Taking all the risks into account, a buy-out of an existing business seems to be a smarter choice.
If you do the math right, keeping the existing students and teaching crew as well as saving the cost of renovation and uncertainty of license application, well justify the asking price of the existing school.
For me, the location is everything. Since I am familiar with schools on the Hong Kong Island side, I decided to look for the education centre in this area. Competition of education centres on Hong Kong Island is high, and the parents tend to be much more demanding. With that in mind, I chose areas on the Island that are densely populated with fewer education centres. Sai Wan Ho district came at the top of the list.
I approached several agencies. I was not able to talk to anyone directly, the replies were via WhatsApp, and the responses were very slow. I didn’t like the choices they offered, until we found AGPS.
A professional consultant soon called me after we made our first inquiry. He interviewed me thoroughly of my budget, passion, experience and background, in order to find the most suitable match to help pursue my dream. It didn’t take long for them to introduce me to the candidate which fits my criteria. I went to sign the NDA (non-disclosure agreement) in AGPS’ office the next day and proceeded to the next step.
I was briefed in great detail of the entire business buying and selling process: from negotiation to signing contracts and transferring of licenses. After signing the NDA, they are now able to share with me the reason for selling, the development potential, and any room for improvement if we agree to take over the business. I’m eager to meet with the existing owner to understand more about their school.
A site visit has been arranged. I was accompanied by the consultant who toured me around the neighbourhood and explained the challenges the school is facing. AGPS provided a lot of information to prepare me for the purchase as well as future operation. We met with the owner, and I reached out the consultant immediately after for a speedy closure.
It only took a day to finalize a reasonable offer with help from AGPS. They also assisted us by looking after the new rental agreement, tenure and deposit transfer. The business purchase contract was adjusted to both parties’ comments and explained in detail. Once the ownership transition was completed, AGPS contacted the landlord immediately to make sure of a seamless switch of the tenant.
AGPS also helped with another favour. I was wondering if I could be onboard before the official hand-over date to be up to speed with operations. The seller was reluctant to begin with, but they eventually agreed thanks to the intervention of AGPS.
It has been few months since we took over the school. We improved the operation flow and focused on teaching quality, and as a result, the student count has increased 3-fold. None of this would be possible without the help from AGPS, who understood our needs, and guided us through the journey.
I will recommend to anyone who seeks to be their own boss without the slightest hesitation: talk to AGPS about your dream, and you will be amazed to see how wonderful guidance and support they provide can be. Wish you all the success in your future endeavours.
Dedicated Education
Louis Chung
The Founder
Louis Chung
