How to Sell Your Early Education Business: 5 Approaches to Know
Selling your early education business is one of the most important financial and emotional decisions you’ll make as an owner. From your final sale price to how smoothly the transition unfolds, the path you choose for selling can shape everything.
Whether you’re just starting to learn how to sell a childcare business or actively considering a sale, it’s important to know your options. Here we outline five distinct approaches for selling your school, plus key pros, cons, and considerations to help guide your next step.
1. Leverage Your Personal Network
Your network of current or former colleagues, staff, families, and industry peers can be an be an invaluable resource when learning how to sell your early childhood education business. Many owners begin by putting out feelers or having conversations with people they already know.
Pros of Using Your Network:
Familiarity and trust
Potentially quicker path to closing
Cons of Using Your Network:
Limited reach
May not surface the best or most qualified buyer
Difficult to gauge fair market value
Keep in Mind:
Without a clear sense of market dynamics, it’s easy to undervalue your school and real estate or compromise on terms, especially when emotions and personal ties are involved.
2. List on an Online Marketplace
Platforms like BizBuySell and LoopNet are popular places to list small businesses for sale. With the right listing, you might attract interest from independent operators or investors looking for childcare businesses.
Pros of Listing Your School Online:
Broad exposure
Full control over your listing and messaging
Cons of Listing Your School Online:
Time-intensive lead vetting
Many inquiries come from first-time buyers
Lack of confidentiality
Keep in Mind:
Online marketplaces often generate a high volume of interest, but much of it isn’t qualified. Owners frequently spend weeks fielding messages that lead nowhere and public listings can risk family and staff morale for those who want to explore options for selling their childcare business confidentially.
3. Sell Directly to a Buyer
Many owners are approached (often quite persistently) by local competitors, multi-site operators, or private equity groups. Others already have a potential buyer in mind, like a staff member or friend interested in owning a childcare business.
Pros of Selling Directly:
Fast process
No intermediary fees
Cons of Selling Directly:
Underselling without a competitive process
Difficult to negotiate from an equal footing
High risk of lower sale price at closing
Keep in Mind:
Without third-party involvement, it’s hard to validate what your early childhood education business is truly worth or ensure the deal terms are favorable. It can also be difficult to negotiate when the buyer has the upper hand or is someone you know or trust.
4. Work with a Local Broker
Brokers often work across a range of industries. They typically market the business locally and manage buyer inquiries.
Pros of Local Brokers:
Hands-on marketing and buyer approach
Guidance through negotiations
Cons of Local Brokers:
Lack of understanding key nuances of early education transactions
Limited, if any, childcare-specific buyer relationships
Variable quality and experience
Keep in Mind:
A local broker may not know how to sell a childcare business like an early childhood education (ECE) specialist. They might not be equipped to position your school effectively to strategic or institutional buyers who specialize in ECE. Their experience with childcare businesses can vary, and their marketing efforts may not reach the most qualified pool of buyers.
5. Partner with an ECE-Specific Advisor
Industry-specific advisors focus solely on early education schools and real estate and typically have established relationships with qualified buyers, ranging from regional operators to national groups and private equity firms.
Pros of ECE Advisors:
Childcare-specific valuations, negotiations, and deal structure
Access to serious, pre-qualified buyers
Typically higher sale prices, even after advisor fees
Cons of ECE Advisors:
May require more preparation up front
Some advisors claim ECE expertise but lack true industry depth, which can lead to missed opportunities
Keep in Mind:
The right advisor can help you maximize value, protect confidentiality, and navigate complex decisions with confidence. But not all early education advisors are created equal. In a highly specialized space like early education, an advisor’s experience, reputation, and track record make the difference between an average outcome and an exceptional one.
The Path You Choose Matters
There’s no one-size-fits-all approach for selling a school, but the choice you make will directly shape your financial outcome, your legacy, and the future of your staff and families. The most successful owners start preparing early and surround themselves with advisors who know the childcare industry inside and out.
Contact HINGE Early Education Advisors to Sell Your Childcare Business
Are you researching how to sell your education business and curious what your school is worth or how to attract the right buyer? HINGE Early Education Advisors works exclusively with early education business and real estate owners and can help you take the next step with confidence. Contact us confidentially online or call (864) 664-3877 to start the conversation.