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?