A disciplined diligence process protects buyers from expensive surprises. Here are the categories that matter most in a childcare acquisition.
Financial and enrollment diligence
Verify three years of financials, normalize for one-time items, and reconcile reported revenue to enrollment and tuition records. Confirm capacity utilization, waitlists, and tuition relative to the local market.
Enrollment trend and rent coverage are the heart of whether the income is real and sustainable.
Regulatory, staffing, and real estate
Review licensing status and inspection history, staff ratios, wages, and director tenure. On the real estate, examine condition, capacity, playground, parking, and — if leasing — the lease term and guaranty.
Licensing problems and deferred maintenance are common, fixable-but-priced issues.
Reputation and transition
Assess online reviews, family retention, and the relationships that hold enrollment together. Plan how to retain key staff and reassure families through the ownership change.
We guide buyers through a childcare-specific diligence process that generalist advisors miss.
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