Outside School Hours Care (OSHC) Businesses For Sale
Outside School Hours Care is the before-school, after-school and vacation care segment, and it behaves quite differently from long day care. OSHC businesses generally operate from school premises under a licence or service agreement with the school or its governing body, serving school-aged children during the hours either side of the school day and across the holidays. For buyers, the defining feature — and the defining risk — of an OSHC business is the school relationship. Revenue is real and CCS-supported, but the right to operate from the site usually rests on an agreement that can be re-tendered, which makes the terms and tenure of that agreement the first thing to examine.
Sessions
Before / after / vacation
Key asset
School agreement
Revenue
Seasonal pattern
Regulation
NQF / ACECQA
The school agreement is the business
Most OSHC services run on a contract with a school: a licence to use the hall or dedicated space before and after school and during vacation periods. The length, exclusivity and renewal mechanism of that agreement effectively define how durable the revenue is. A long agreement with a strong school relationship is a defensible asset; a short or rolling arrangement that can be put out to tender is closer to a contract you are renting. Buyers should read every school agreement in the portfolio, understand renewal and termination rights, and weight the valuation accordingly. A multi-site OSHC operator with staggered, long-dated agreements is materially lower risk than a single site up for renewal next year.
Understanding the seasonal revenue pattern
OSHC revenue is not flat across the year. Term-time before- and after-school sessions produce steady attendance, while vacation care produces concentrated bursts that can be very profitable but vary with local demand and program quality. School holidays, pupil-free days and term timing all shape the cash-flow rhythm. When you assess an OSHC business, normalise revenue across a full year and across multiple years, and understand the mix between term-time and vacation care. A centre that relies heavily on vacation care for its margin carries different risk to one with strong, consistent after-school attendance.
Operating model and cost structure
OSHC is comparatively light on fixed assets — you are typically using the school’s space — which keeps capital requirements lower than long day care. The dominant cost is labour, and the challenge is staffing split shifts (early morning and late afternoon) plus full days during vacation care. Educator recruitment and rostering capability is therefore a real operational competency, and a business with a stable, experienced coordinator team is worth more than one with chronic staffing gaps. Buyers should assess the staffing model, the program quality that drives vacation-care demand, and the systems used to manage attendance and CCS.
Due diligence priorities
Read every school/service agreement and map renewal dates and termination rights; confirm the service approval and NQS rating; normalise revenue across term-time and vacation care over several years; assess staffing stability and the coordinator team; check CCS compliance and attendance records; and understand any capital or program commitments made to the schools. Because the operating right can be re-tendered, agreement tenure should be front and centre in both your pricing and your financing conversation.
Other business types
OSHC: frequently asked questions
What makes OSHC different from long day care?
OSHC serves school-aged children before and after school and during vacations, usually from school premises under an agreement with the school. The school relationship, seasonal revenue and lighter asset base make it a distinct business with its own risks and valuation logic.
Why is the school agreement so important?
Your right to operate usually depends on a licence or service agreement with the school. Its length, exclusivity and renewal terms determine how durable your revenue is. Short or re-tenderable agreements carry more risk and should be priced accordingly.
How does seasonality affect OSHC revenue?
Term-time before- and after-school sessions are steady, while vacation care is concentrated and more variable. Always normalise revenue across a full year and several years, and understand the term-time versus vacation-care mix.
Is OSHC cheaper to buy than long day care?
Capital requirements are usually lower because you operate from the school’s space rather than a leased building. Value still depends on agreement tenure, revenue stability and staffing capability.
What is the main operational challenge?
Staffing split shifts before and after school, plus full days during vacation care. A stable, experienced coordinator team is a genuine asset and supports higher value.
What should I prioritise in due diligence?
The school agreements and their renewal/termination terms, multi-year normalised revenue, staffing stability, the NQS rating, and CCS compliance. Agreement tenure should drive both pricing and financing.
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