Healthcare, Education & Personal Services · Seller readiness
Selling a Daycare & Childcare Center business
Published · Reviewed by The Diligence Standard Team · Updated
Owners should document enrollment cohorts, tuition, staffing, licensing, facility capacity and how leadership transfers after closing.
How the business works
Enrollment, tuition yield, staffing ratios, licensing, facility capacity and director dependence drive value.
Issues to resolve
- Enrollment records are not cohort-based
- Staffing ratios or credentials are not organized
- Owner functions as unpaid director
- Compliance history is incomplete
- Waitlist is anecdotal
Evidence to request and reconcile
- Enrollment roster and tuition schedule
- Staff credentials/payroll
- Licensing and inspection records
- Waitlist and attrition history
- Lease/facility capacity
- Subsidy/payment records
Decision questions
- Who is the licensed/operating leader after closing?
- What is true enrollment retention?
- How much wage pressure exists?
- Are there facility or compliance upgrades required?
- Is the waitlist current, qualified and convertible?