Texas City, TX
$1,350,000
Day Care and Child Care Centers For Sale
Industry Info
Buy or Sell a Day Care or Child Care Business
The U.S. childcare industry is a $50+ billion market and grows every year. This growth is driven by several factors, including increased participation of women in the workforce, rising parental awareness about early childhood education, and the prevalence of dual-income households.
If you are in the market to buy or sell a day care or childcare business, it’s important to understand how these businesses perform financially, and how they are valued in the business for sale market. To help you get started, we have aggregated data from childcare business for sale listings to surface typical financials as well as revenue and earnings multiples based on asking prices. These values can provide relevant context when evaluating individual businesses.
Market Overview
|
Number of Businesses Analyzed |
352 |
|
Median Asking Price |
$575,000 |
|
Median Reported Revenue |
$683,207 |
|
Median Reported Earnings |
$200,000 |
|
Financials based on businesses that listed an asking price, annual revenue, and seller's discretionary earnings. |
|
Day Care and Child Care Business Valuation Multiples
|
Range |
Revenue |
Earnings (SDE) |
|
Lower Quartile |
0.57 |
2.16 |
|
Median |
0.93 |
3.17 |
|
Upper Quartile |
1.96 |
4.36 |
|
Revenue and earnings multiples based on reported revenue, seller's discretionary earnings, and asking price. |
||
Read the Report:
Day Care & Child Care Business Valuation Multiples and Financial Benchmarks
FAQs
How much does it cost to buy a childcare business?
Prices vary depending on the size of the business listed, but the median asking price for a childcare business is $575,000.
How much do childcare business owners earn?
Day care and childcare business owners report median annual sales of $683,207 and annual owner earnings of $200,000. These figures are based on businesses that have listed their annual revenue and seller's discretionary earnings.
How do I value a day care or childcare business?
Valuing a day care or childcare business involves considering several factors, including annual sales, profit, growth (or decline) trends, and demographic trends of the local market. Brokers, business owners, and business buyers will typically rely on valuation multiples to gauge business value relative to similar businesses in the market. Revenue multiples among childcare businesses listed for sale range from 0.57 to 1.96, with the median at 0.93. Earnings multiples range from 2.16 to 4.36, with the median at 3.17. These values suggest the average childcare business in the U.S. may sell for around 0.93 times its annual revenue, and 3.17 times its annual owner’s earnings.
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