Long Day Care Centres For Sale in Australia
Long Day Care (LDC) is the flagship segment of the Australian early education and care market and the most sought-after acquisition for childcare investors. A centre-based long day care business operates extended hours — generally 6:30am to 6:30pm — across roughly 48 to 50 weeks a year, drawing the bulk of its revenue from Child Care Subsidy (CCS) funded fees. For buyers, LDC offers the highest revenue ceiling of any childcare format, but it also carries the most regulatory weight under the National Quality Framework, so disciplined due diligence is essential before you register interest or proceed to settlement.
Typical hours
6:30am – 6:30pm
Approved places
40 – 150+
EBITDA multiple
3.5x – 6x
Regulation
NQF / ACECQA
What you are actually buying
A long day care acquisition is the purchase of an approved service with a defined number of approved places, a service approval issued under the Education and Care Services National Law, a National Quality Standard (NQS) rating, an established enrolment base and — almost always — a long-term commercial lease. Buyers should look past the headline asking price and model the underlying economics: occupancy as a percentage of licensed capacity, the CCS-funded versus full-fee revenue split, the daily fee relative to the CCS hourly rate cap, staff wage costs against the centre’s educator-to-child ratios, and rent as a percentage of revenue. These inputs determine sustainable EBITDA far more than the number of children enrolled on the day you inspect.
Approved provider status and the transfer process
You cannot simply take over a long day care centre the way you would buy a café. Ownership of an approved service requires you to hold (or apply for and be granted) approved provider status with the relevant state or territory regulatory authority, working under ACECQA’s national system. The provider approval assesses the fitness and propriety of the applicant and its key personnel. Most LDC transactions are structured either as a share sale (you acquire the entity that already holds the approvals) or a business/asset sale combined with a service-transfer application. Each path has different timing, risk and tax consequences — buyers should map this with their accountant and a childcare-experienced lawyer early, because settlement timing hinges on regulatory approval.
Valuation drivers specific to LDC
Long day care businesses are valued primarily on a multiple of normalised, maintainable EBITDA — commonly in the range of 3.5 to 6 times for single sites, with quality portfolios attracting more. The multiple a particular centre commands is driven by its NQS rating (an Exceeding National Quality Standard service is materially more valuable than one Working Towards), occupancy trend, lease tenure and rent-to-revenue ratio, approved places and any latent capacity to grow them, educator stability and key-person dependency, and local supply and demand for places. Because LDC carries the heaviest fixed-cost base, occupancy sensitivity is high: a centre running at 70% can become dramatically more profitable at 85% without proportionally more cost, which is exactly where value-add buyers focus.
Due diligence checklist for buyers
Before you commit, verify the service approval and provider history, the current and historical NQS rating and the date of the last Assessment and Rating visit, the lease (term remaining, options, rent reviews, make-good and permitted-use clauses), enrolment and occupancy records, the CCS compliance history and any debts or conditions on the approval, staff award classifications and entitlements, the Working With Children Check status of educators, and any outstanding compliance notices. A change of provider can trigger a fresh Assessment and Rating cycle, so understand where the centre sits in that cycle. Our broker network can introduce you to specialist lawyers and accountants who do this work daily.
Other business types
Long Day Care: frequently asked questions
How much does a long day care centre cost to buy in Australia?
Single long day care centres typically transact on an EBITDA multiple of roughly 3.5 to 6 times maintainable earnings, so the price depends far more on profitability, NQS rating and lease quality than on the number of places. Smaller suburban centres may sell for several hundred thousand dollars, while larger high-occupancy services in metro markets can exceed several million.
Do I need to be an approved provider before I buy?
You must hold approved provider status before you can legally operate the service. In a share sale you may acquire the entity that already holds the approval; in an asset sale you generally need your own provider approval and a service transfer. Either way, plan for the regulator’s assessment timeline.
What occupancy rate should I look for?
As a general guide, sustained occupancy above 80% of approved places is considered strong for long day care. Lower occupancy is not necessarily a red flag — it can represent value-add upside — but you should understand why it sits where it does before pricing it.
Will the NQS rating transfer to me?
The service’s current rating stays with the service, but a change of approved provider can prompt a new Assessment and Rating cycle. Factor the possibility of a re-rating into your post-settlement plan.
How important is the lease?
Critically important. Most LDC centres operate on long leases, and remaining term, options to renew, rent review mechanism and permitted use are primary valuation inputs. A short remaining lease with no options can materially reduce value and financeability.
How long does a typical purchase take to settle?
Allow several months. Regulatory provider approval or service transfer, finance, lease assignment and due diligence all run in parallel, and the regulator’s timeframe usually sets the critical path.
Register to buy a Long Day Care business
Tell us your buying criteria and we will match you with suitable, qualified opportunities across Australia.
Ready to take the next step?
Register your buying criteria or request a free, confidential valuation. We respond within one business day.