What Information is Needed to Sell a Preschool?
If you’re thinking about selling your preschool or early childhood education business, it’s important to take the time to prepare the right information in advance. Serious buyers expect transparency and will want to dig into the details of your business. Having key data organized and accessible can mean the difference between a smooth sale and a stalled deal. An experienced advisor group like HINGE Early Education Advisors can help gather, organize, and present this information to buyers in a way that builds confidence and drives value.
The Essential Information You Need to Sell Your Preschool or ECE Business
Three years of financials
Monthly Profit & Loss (P&L) statements
Balance sheets
Revenue breakdowns (tuition vs. subsidy, program types, etc.)
Documentation of owner add-backs and non-recurring expenses
Real estate details (if applicable)
A recent appraisal or property tax statement
Rent roll or lease terms (if leasing to your business)
Floor plans and square footage
Maintenance records and capital improvements
Enrollment and capacity data
Enrollment by classroom and age group (monthly over 2-3 years)
Licensed capacity and utilization rates
Tuition rate sheets (current and historical)
Waitlist or attrition data
Staffing information
Organizational chart and staff roster
Tenure, wages, and benefit information
Turnover trends
Leadership bios and management structure
Licensing and compliance records
Current childcare license
Past inspection reports
Fire marshal, sanitation, or health department approvals
Any open citations or compliance plans
Marketing and operational overview
Parent and employee handbooks
Operating hours, calendar, and program offerings
Technology stack (CRM, billing, payroll, etc.)
Community reputation or reviews
Legal and corporate documents
Business entity documents (LLC or Corp formation, EIN)
Lease or real estate deeds
Employment agreements or non-competes
Insurance policies and coverage details
Beyond the Checklist: 5 Strategies to Implement Now for a Smoother Sale Later
Even with perfect paperwork, buyers want to know they are ultimately investing in a well-run, future-ready business. In the year leading up to your sale, consider implementing these strategies:
Get ahead of information gathering: Organized records help everyone move faster and can give you more leverage during negotiations. HINGE Advisors offers a sample diligence list that makes it easy to get started now.
Automate wherever possible: Automate billing, payroll, financial reporting, and vendor payments to reduce friction and showcase operational excellence.
Track and document add-backs: Buyers want clean books. Separate personal expenses early and keep a running list of add-backs that will be removed from your valuation.
Evaluate for value: Revisit tuition rates, vendor contracts, and facility conditions. Small changes now can lead to big boosts in EBITDA and buyer interest later.
Involve and empower your team: A strong culture brings strong value. Preparing your staff to operate independently and including key leaders in your transition plan sets the tone for a seamless exit.
Buyers are drawn to sellers who have organized, and ideally automated, their operations — especially when those efforts result in a profitable, efficiently run childcare business. At HINGE Advisors, we streamline this process for you. From our ECE financial analysts and complimentary valuations to our in-house diligence team, we make selling as smooth and rewarding as possible.
Contact HINGE Advisors for Guidance
Ready to grow or sell your childcare business? Our team has the expertise, connections, and proven strategies to help you succeed. Contact us online, call (864) 664-3877, or email info@hingeadvisors.com to get started.