Daycare for sale and child care centers for sale
A daycare for sale is priced on its cash flow, its licensed capacity and how full it runs, not on the building alone. Owner run centers commonly trade at roughly 2 to 4 times seller's discretionary earnings (SDE), with strong, full centers that run without the owner at the top of that range, and the real estate is either sold separately or leased to the buyer. On CompanyBrokers every daycare listing shows revenue, cash flow, licensed capacity, current enrollment, asking price and the implied multiple, while parent lists, staff files and licensing records stay in a data room you open after an NDA and a proof of funds step.
- NDA signed
- Proof of funds
- Data room
Daycare business for sale near me
Set a deal alert for daycares and child care centers by state, price range, licensed capacity and minimum revenue, and new listings reach your inbox the day an owner or a broker publishes them. Centers with a waitlist and clean inspection records sell fast, so an alert beats checking a search page once a week. Preschools, infant centers and after school programs each have their own filters.
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How much is a daycare worth
Buyers start from SDE, add back one time costs and owner perks, then adjust for how many seats are filled and who owns the building. A center at 90 percent of licensed capacity with a waitlist is worth far more than the same room at 55 percent, because the fixed costs of staff and rent are already covered. Staff ratios drive payroll, and payroll is the biggest cost, so a buyer checks that wages and ratios match what the state requires.
| Business profile | Annual revenue | Capacity and enrollment | Typical multiple | Indicative price |
|---|---|---|---|---|
| Licensed home daycare, owner runs it | $120,000 | 12 children, nearly full | 1.5x to 2.5x SDE | $40K to $120K |
| Single center, owner is director | $700,000 | 60 seats, 75 percent enrolled | 2x to 3x SDE | $150K to $450K |
| Full center with a director in place | $1,500,000 | 110 seats, 90 percent enrolled, waitlist | 3x to 4x SDE | $600K to $1.5M |
| Two or three site operator | $4,000,000 | 300 seats across sites | 3x to 5x EBITDA | $1.5M to $4M |
These rows are worked examples to show the math, not listings. Put your own numbers into the business valuation calculator to see a range for a specific center, and read the full method in the business valuation formula guide.
What buyers check before buying a daycare
- Three years of financials with tuition, subsidy and fee income shown separately
- Licensed capacity against average enrollment by month, and the waitlist
- State licensing history, inspection reports and any open citations
- Whether the license transfers to a new owner or the buyer must apply fresh
- Staff list with tenure, wages, certifications and whether the director will stay
- Lease terms and renewal rights, or the real estate if it is included
- Share of income from state subsidy programs and how reliably it is paid
- Insurance history and any incident or claims record
Licensing, staff and the deal structure
Licensing is the part of a daycare sale that surprises first time buyers. Rules vary by state, and in many states the license belongs to the owner or entity and does not pass to a buyer, so the buyer applies for a change of ownership and the deal closes on the approval. Plan for four to twelve weeks of regulatory time on top of lender and lease steps. Most sales are asset purchases that include equipment, curriculum, phone number and parent relationships, with a transition period where the seller introduces the buyer to families and staff.
Financing a daycare purchase
Centers with three years of documented earnings can qualify for an SBA loan to buy a business, and lenders like the recurring tuition. Buyers commonly put 10 percent or more down, and sellers frequently carry a note. Lenders want tax returns, an enrollment history, the lease and proof the buyer or a director meets the state's qualification rules for running a center.
Selling your daycare
Owners who want the top of the range spend six to twelve months before listing filling seats, putting a qualified director in place, and cleaning up licensing and staff files. Prepare three years of returns, monthly enrollment, the lease and the latest inspection report, then decide whether to list it yourself on the Owner Listing plan or work with a broker. The step by step version is in sell my daycare business.
How much does a daycare sell for
Most owner run daycares sell for roughly 2 to 4 times SDE, and a center with $150,000 of SDE would usually be priced between $300,000 and $600,000. Full centers with a waitlist and a director in place reach the top of that range, and real estate is added if it is part of the sale.
Is buying a daycare a good investment
It can be, because tuition is recurring and demand for child care is steady in most markets. The risks are staffing shortages, payroll that rises faster than tuition, licensing compliance and a center that depends on its owner. Buyers do best with full centers that have a stable director and long tenured staff.
How do I value a daycare business
Add net profit, the owner's pay and perks, interest, depreciation and one time costs to reach SDE, then apply a multiple based on enrollment against capacity, waitlist, staff stability and license status. Add the building only if it is included, and subtract any debt that stays with the business.
Can I get an SBA loan to buy a daycare
Yes. SBA 7(a) loans are commonly used for daycare purchases when the seller can document three years of returns and steady enrollment. Lenders typically want a down payment of 10 percent or more and look for child care experience or a qualified director who stays.
Does the license transfer when you buy a daycare
It depends on the state. In many states the license does not transfer and the buyer applies for a new license or a change of ownership, so the offer should be conditional on approval. Ask your state child care licensing agency early and write the timeline into the purchase agreement.