How Much Can I Sell My Daycare Business For?

Mar 11

Amid heightened demand for childcare nationwide this year, the industry is seeing a very strong seller’s market for early education and daycare centers. More ECE owners than ever are exploring a sale, whether for retirement, a career pivot, or to unlock capital for reinvestment. If you’ve built a solid, financially sound business, you can reap the financial rewards with a strategic sale that also positions your school, students, and staff for continued success.

Determining how much you can sell your ECE/daycare business for hinges on understanding your true market value as well as how you approach selling. While school values vary, most valuations in early education are calculated by multiplying EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) and a market-driven multiple.

Factors That Impact How Much You Can Sell Your ECE/Daycare Business For

EBITDA adjustments: Valuations should reflect go-forward earnings, with adjustments for personal expenses, new classrooms, or one-time costs.

Multiples: This number varies based on location, size, real estate quality, tuition model, and growth potential.

Real estate: Leasing or owning — and the condition, size, and flexibility of your property — all impact total transaction value.

Buyer strategy: Your school will demand a higher selling price if it aligns with strategic or well-capitalized buyers’ expansion goals.

Leadership and team: Strong staff and stable management make transitions smoother and more valuable.

Market trends: Local competition, buyer demand, and national trends shape what buyers are willing to pay.

How to Maximize the Value of Your Childcare Business Sale

Get an industry- and market-specific childcare valuation: HINGE Advisors is known for providing the most trusted and comprehensive ECE-specific valuations.

Set realistic expectations: An expert valuation from HINGE Advisors helps you understand what buyers are willing to pay and helps you avoid leaving money on the table.

Evaluate your business and real estate separately: If you own your school’s real estate, it needs to be appraised independently. This gives you more flexibility and often increases total transaction value.

Strategic Real Estate Options When Selling Your Childcare Business

Unlock equity through a sale-leaseback: Sell your property, stay in place as a tenant, and use the capital to grow or retire.

Sell both business and real estate together: Ideal for buyers looking for long-term investment stability.

Consider holding the real estate: Retaining the property and leasing it to the new operator can generate passive income and long-term wealth.

Explore a 1031 exchange: Reinvest the proceeds tax-deferred into another investment property to preserve your wealth.

Learn more about leveraging or selling your early education real estate.

How to Increase Your Sale Price by Running a Competitive Process

Create a bidding environment: Multiple offers lead to stronger deal terms and better pricing.

Choose the right buyer: The buyer you choose can impact not only the culture of your school but also the price and terms you receive. Strategic buyers or those with strong financial backing may be willing to pay more for the right fit.

Let your advisor manage the process: A skilled advisor positions your business to attract the strongest offers, negotiates the best possible price and terms, and facilitates the mechanics of the deal. At HINGE Advisors, we manage the entire sales process from start to finish, from confidentially marketing to pre-qualified education buyers throughout the U.S. and abroad to negotiating deal terms and facilitating a smooth close.

Prioritize Confidentiality Throughout the Sale Process

Avoid disruption: Staff and families shouldn’t hear rumors before you’re ready.

Work with an advisor who protects your privacy: HINGE Advisors uses proven strategies to include stakeholders at the right time and in the right way.

Maximize Your Value with HINGE Advisors

HINGE Advisors is a full-service advisory firm dedicated to representing early education owners exclusively: From valuation and buyer outreach to deal negotiation and closing, we manage the full process with one goal in mind — helping you secure the highest possible sales price with the terms that align with what’s most important to you.

ECE is all we do: With unmatched industry experience and a vetted network of 600+ buyers, HINGE Advisors has the proven expertise to position your business for maximum value in today’s competitive market.

We follow a proven 10-step transaction process that helps owners prepare, market, and close on the sale of their education business and real estate with confidence. Using this process, we’ve gained more than $1B for ECE owners and know exactly what it takes to maximize business and real estate value in this industry specifically.