Childcare / Daycare Valuation Multiples (2026)
Childcare valuations reward occupancy, real estate control, and licensing. Centers with waitlists and owned real estate or long lease trade at 1.1× revenue and 5.8× EBITDA.
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Premium drivers
- ↑Full / near-full occupancy with waitlist
- ↑Long-term favorable lease or owned real estate
- ↑Strong staff retention
- ↑Active state subsidy participation
Discount drivers
- ↓Aging facility / required upgrades
- ↓Staff licensing gap
- ↓Lease ending soon
- ↓Subsidy reimbursement timing risk
Who buys childcare / daycare?
Multi-site childcare operator, PE-backed early-education platform (KinderCare, Bright Horizons), or operator buyer
Typical timeline + revenue band
- Days to close: 90–210
- Revenue band these multiples apply to: $500K–$3.00M
- NAICS: 624410 (Education)
5 levers that lift your Childcare / Daycare multiple by 30-50%
- 1Lock in recurring revenueConvert the top of your childcare / daycare revenue stack into multi-year contracts, retainers, or auto-renewing subscriptions. Buyers pay 25-40% more for revenue they don't have to re-win every quarter.
- 2De-risk customer concentrationAim for no single customer above 15% of revenue. If you have a > 25% client, get them on a multi-year master services agreement before going to market.
- 3Document the business out of the ownerMulti-site childcare operator, PE-backed early-education platform (KinderCare, Bright Horizons), or operator buyer will discount aggressively for any function that lives in the owner's head — sales, key vendor relationships, pricing, hiring. Run the next 90 days like the owner is on a 6-week vacation.
- 4Clean up the financialsGet a Quality of Earnings-ready trailing 12 months: GAAP-aligned, owner add-backs documented, no commingled personal expenses. This alone moves the multiple 0.5-1.0× upward in this category.
- 5Match the deal to the right buyer poolPE-backed roll-ups, strategic acquirers, and ETA buyers compete on different terms. List with someone who has run a process for childcare / daycare acquisitions — generic SMB brokers will leave 20%+ on the table.
FAQ — Childcare / Daycare valuations
What's a typical childcare / daycare valuation multiple?▾
Typical childcare / daycare valuations land near 2.8× SDE, 4.5× EBITDA, or 0.8× revenue. Strong operators reach 3.6× SDE / 5.8× EBITDA / 1.1× revenue, while weaker operators stay closer to 2.4× SDE / 3.5× EBITDA / 0.6× revenue.
How long does it take to sell a childcare / daycare?▾
Most childcare / daycare deals close in 90–210 days from listing. Strong operators with clean financials and a documented buyer pool close on the lower end.
Who buys a childcare / daycare business?▾
Multi-site childcare operator, PE-backed early-education platform (KinderCare, Bright Horizons), or operator buyer
What pushes a childcare / daycare valuation to the high end?▾
Full / near-full occupancy with waitlist. Long-term favorable lease or owned real estate. Strong staff retention. Active state subsidy participation.
What forces a discount when selling a childcare / daycare?▾
Aging facility / required upgrades. Staff licensing gap. Lease ending soon. Subsidy reimbursement timing risk.