Selling A Childcare Business

It is essential to plan the sale of your business and get your ‘house’ in order. A meeting with a childcare specialist Broker will guarantee a smooth sales process and achieve the best sales price by preparing your business in advance for the sale by maximising its efficiency, earning potential, structure and presentation. Find a broker for childcare sales is imperative to achieve the desired result. The following points should be considered:

1. Childcare multiples:

What multiple will my business sell at? There has there been a shift to higher multiple at which childcare businesses are sold or is there. Realisation of where the business sits in the market place and what can be done to improve the performance.

Does your Centre meet National Quality Standards (NQS)? Meeting these standards of the NQS and National Regulation will enhance the business.

2. Worker issues:

Are your business procedures with staff and administration set up and do they conform to the industry standard and Fair Work Act Requirements?

Have you considered any modifications for long service leave and accumulated annual leave that may be off set from the Purchase Price or an offer on the business due to worker commitments may have impacts on an offer on the Business.

3. Lease:

Is your lease current? Longer leases are a prerequisite to maximise the sale of a business. Renegotiating the lease will ensure the stability of tenure ship of the business and marketability of the business. 

4. Financials:

Are your financials up to date with supporting management records which enable the purchaser to undertake due diligence? Are they reflecting the true state of your business? These documents are required to justify the asking price and drive the sales process.

5. Changes in the Child Care Industry

The business is changing rapidly with numerous foreign investors, developers and larger corporate providers are trying to grow in the market place. Make your business an alluring target by creating a niche position, specialised teaching programs, a point of difference and motivated staff.

6. Managing the Contract process

A good childcare broker will liaise with all parties to ensure a seamless sale process. Ensuring buyer approvals are obtained before an offer is made can shorten the Due diligence considerably. Significant time and cost can be spent going into and arranging an agreement with a ‘subject to finance’ clause and the purchaser eventually does not get finance leaving the Vendor frustrated, a good broker will manage a buyer to have finance approvals in place to circumvent any hiccups along the way.

7. Contracts

LINK Business can draw up contracts, which reflect the agreed conditions by both parties.

Frequently childcare specialists will use a Heads of Agreement or Memorandum of Understanding (MOU) or Terms sheet (written offers), these can be valuable in larger transactions.

It can frequently be hard to arrange formal terms into the formal contracts on the off chance that they are not in the underlying MOU or Heads of Agreement.

8. Presentation

At some stage of the sales process the purchaser of a business will want to inspect the premises, a well presented centre will easily recoup any money spent on the presentation of the centre.  A well-presented centre will drive a higher price with a smoother offer process.


These are only a couple of the issues to consider long before the business is taken to market. There are various unique Child Care Centre operators in the business and it is imperative to utilize a specialist childcare broker. Work with your specialist Childcare broker long before you intend to sell, your business will be in a far better position to optimise the positive outcome you require.  We service Brisbane, South east Queensland, Western Queensland and North Queensland. For more information about selling your Child Care Centre please contact me today.


David Hall, LINK