Daycare Business Valuation
Daycare / Childcare Business Valuation Calculator & Exit Planning Built for Center Owners
We built one platform that tracks your daycare / childcare business's value monthly, identifies exit gaps early, and ensures your personal finances align with your exit timeline.
1,000+ Businesses have joined YourExitValue.com
Most Daycare / Childcare Owners Have No Idea What Their Business is Actually Worth
Current Daycare / Childcare Valuation Multiples (2026)
Daycare / Childcare values are strong due to increased buyer demand from childcare consolidators like KinderCare and Bright Horizons. Here's what companies sell for:
Every business is different. That's why you need to track your value.
Included in Your Exit Value is a complete Exit Planning Assessment where you track your progress quarterly against your results from the previous quarter.
Know your number and watch it grow
Most business owners guess at their value. You'll know it with precision.
Our platform uses six proven valuation methodologies to give you a complete picture of what your business is worth today—and tracks how that number changes month over month. No more waiting for annual appraisals or paying $15K+ for outdated reports.
See your trends. Spot opportunities. Make informed decisions
What Actually Drives Daycare / Childcare Business Value
Revenue and earnings are the two most influential factors in your daycare / childcare business's valuation. But not all companies are valued equally. Here are the factors that move your number up—or down:
Enrollment Rate
90%+ Enrolled
Enrollment at 85%+ of licensed capacity shows demand. Full enrollment with waitlists commands premium pricing—under-enrolled centers have capacity issues buyers must solve.
Low enrollment = quality/location issues
Staff Retention
<25% Turnover
Staff retention in childcare is critical—high turnover disrupts children and parents. Centers with tenured teachers create stability that parents value and reduces constant hiring costs.
High turnover = parent concerns
Quality Ratings
Top State Rating
Tuition rates at or above market show you're not competing on price. Above-market rates indicate quality reputation—low rates suggest you're competing with home daycares on cost.
Low ratings limit potential
Tuition Rates
Market Premium
Multiple classrooms and age groups create a full pipeline. Centers serving infant through pre-K capture families for 4-5 years—single age group facilities lose families as children age out.
Discounted = margin problems
Facility Condition
Modern & Safe
Good standing with licensing and no violations is essential. Compliance history is scrutinized carefully—facilities with violations face higher risk and lower valuations.
Dated = immediate investment
Owner Involvement
Director-Run
Owner not in a classroom shows the center runs independently. Directors and teachers handling all care while owner manages demonstrates a transferable business, not a job.
Owner in classroom = hard transition
How to Value a Daycare or Childcare Center
The U.S. childcare industry includes over 100,000 centers and family childcare providers generating approximately $60 billion in annual revenue. Childcare centers are valued for their essential-service nature and strong demand, particularly in underserved markets with waitlists.
Seller's Discretionary Earnings (SDE) is the standard valuation method. Childcare centers typically sell for 2.0x to 4.0x SDE. Centers with waiting lists, licensed capacity utilization above 85%, strong state licensing and accreditation, and a solid reputation in the community achieve the top of this range.
Revenue multiples for childcare centers generally range from 0.40x to 0.70x annual revenue. Some transactions are also evaluated on a per-licensed-capacity basis, typically $3,000 to $8,000 per licensed slot, depending on market demand and facility quality.
The unique valuation factor for childcare is the licensed capacity, waitlist, and regulatory standing. A childcare license is often the most valuable asset — in many markets, obtaining a new license requires navigating lengthy approval processes and zoning restrictions. Centers with clean licensing histories, NAEYC accreditation, strong teacher retention, and established subsidy billing relationships (for state childcare assistance programs) are significantly more valuable. Parent satisfaction, online reviews, and enrollment stability are leading indicators buyers evaluate closely.
The childcare industry has received increased attention from private equity, with operators like KinderCare, Bright Horizons, and Learning Care Group expanding through acquisitions. The post-COVID childcare shortage has created a seller's market in many regions. Use our free calculator above to get your instant estimate, then track your value monthly with YourExitValue.
Frequently Asked Questions
What multiple do daycare / childcare businesses sell for?
Most daycare / childcare businesses sell for 2.0x – 3.0x SDE or 0.4x – 0.7x annual revenue. However, the range is wide. Companies with strong enrollment rate can command significantly higher multiples. YourExitValue tracks exactly where you fall on each value driver.
How does enrollment rate affect my company's value?
Enrollment Rate is one of the biggest value drivers for daycare / childcare businesses. Childcare consolidators like kindercare and bright horizons specifically look for companies with strong performance here. Improving this metric can significantly increase your multiple.
How long before selling should I start tracking my daycare / childcare business value?
Ideally 1 to 5 years before your target exit. This gives you time to improve your enrollment rate, reduce owner dependence, strengthen your team, and document growth trends buyers pay premium prices for.
Who buys daycare / childcare businesses?
Common buyers include childcare consolidators like KinderCare and Bright Horizons, as well as individual buyers looking to own a business and strategic acquirers. Each buyer type values different aspects. YourExitValue helps you understand what each looks for.
What valuation method is used for daycare / childcare businesses?
Most daycare / childcare businesses are valued using SDE (Seller's Discretionary Earnings) multiples for smaller companies under $1M in earnings, and EBITDA multiples for larger companies. Revenue multiples (0.4x – 0.7x) are sometimes used as quick reference.
What's the fastest way to increase my daycare / childcare business value?
The fastest improvements typically come from: 1) Improving your enrollment rate to hit the target, 2) Reducing owner dependence, 3) Documenting your systems and processes, and 4) Cleaning up financials. Most owners add 20-40% in 12-24 months.