Sell Your Long Day Care Centre
Selling a long day care centre is one of the most significant transactions a childcare operator will undertake, and Long Day Care commands the deepest buyer pool of any segment — from owner-operators expanding their footprint to institutional groups and private equity. That demand is good news for value, but it also makes a confidential, well-prepared sale process essential. Premature disclosure to staff and families can unsettle enrolments and erode the very EBITDA your sale price is built on. We help long day care owners prepare, price and present the business to genuinely qualified buyers while protecting confidentiality.
Typical hours
6:30am – 6:30pm
Approved places
40 – 150+
EBITDA multiple
3.5x – 6x
Regulation
NQF / ACECQA
Why long day care attracts strong buyer demand
Long day care is the most institutionalised part of the early education market. Its recurring, government-underpinned CCS revenue, defined capacity and scalability make it attractive to acquirers seeking stable, growing cash flow. For a seller, that translates into competitive tension when the business is presented well — but only if buyers can trust the numbers. The strongest outcomes come from a clean data room: normalised financials, an occupancy history, a clear lease position and an honest read on the NQS rating. Owners who prepare twelve months ahead consistently achieve better terms than those who go to market reactively.
What your centre is likely worth
Most long day care centres are valued on a multiple of normalised, maintainable EBITDA — typically 3.5 to 6 times, with the exact multiple set by your NQS rating, occupancy trend, lease tenure and rent-to-revenue ratio, staff stability and the local competitive landscape. Add-backs matter: owner’s wages, one-off costs and non-recurring items should be normalised so a buyer sees the true earnings. Before you commit to an asking price, a proper valuation that reflects these drivers will usually pay for itself, because mispricing — high or low — costs you either time on market or money at settlement.
Protecting confidentiality
For most long day care owners, confidentiality is non-negotiable. Educators are in short supply and families have choices, so news that a centre is for sale can trigger departures before settlement. Our process screens and qualifies buyers before any identifying information is released, uses non-disclosure agreements, and stages the release of sensitive detail. You decide when, and whether, staff are informed. The goal is a process that runs quietly in the background while your centre keeps performing exactly as it should.
Preparing for sale and settlement
A smooth long day care sale depends on documentation a buyer’s lawyer and financier will scrutinise: clean financials with clear add-backs, occupancy and enrolment records, the lease and any assignment requirements, your CCS compliance position, staff award classifications and entitlements, and the service’s rating history. Because a change of provider can trigger a fresh Assessment and Rating cycle for the buyer, being able to show a strong, well-evidenced quality position supports both price and deal certainty. We coordinate with childcare-experienced lawyers and accountants so your sale stays on track to settlement.
Other business types
Long Day Care: frequently asked questions
How is my long day care centre valued?
Primarily on a multiple of normalised maintainable EBITDA — usually 3.5 to 6 times — adjusted for your NQS rating, occupancy trend, lease terms, staff stability and local competition. We arrange a confidential valuation that reflects these drivers before you set an asking price.
Can I sell without my staff and families finding out?
Yes. Confidentiality is central to our process. Buyers are screened and bound by non-disclosure agreements, and sensitive detail is released in stages. You control if and when staff are informed.
How long does it take to sell a long day care centre?
From preparation to settlement, expect several months. Marketing to qualified buyers can be quick, but regulatory provider approval or service transfer, finance and lease assignment determine the settlement timeline.
Should I improve my NQS rating before selling?
Where time permits, demonstrable quality supports both price and buyer confidence. Even without a formal re-rating, well-evidenced quality practices and a clear improvement trajectory strengthen your position.
What documents will I need?
Normalised financials, occupancy and enrolment records, the lease, CCS compliance history, staff entitlement records and your rating history. We help you assemble a buyer-ready data room.
Do I have to inform families during the sale?
No. Most owners prefer families and staff are only informed at the appropriate stage, often near or at settlement. Our staged, confidential process is designed around exactly that preference.
Get a free valuation for your Long Day Care business
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