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Things to Review When Looking at Purchasing a Childcare Centre


Buying a childcare centre may well be one of the biggest financial transactions that you will ever undertake. As a result, it is important to understand the fundamentals that drive the business that you are looking at purchasing. Here are the things that you should consider checking.


Staff can be either your greatest asset or your greatest liability. Take the time out to meet the centre Director and find out her plans for the child care facility, and any changes she would like to see. Your team of educators should also be open to the change of owners.

Equipment, Facilities, and Resources

Do a thorough check of the premises so you can understand if there are any additional costs that may be required to update the property. It may be that the play area is outdated, the educators may need new educational resources, or inadequate security systems may need to be replaced.


As a buyer, you will be looking for a strong balance sheet with strong indicators of ongoing performance. Take into account the childcare centre’s highs and lows.


Is the centre located in a family orientated neighbourhood? Are there local schools nearby that you can partner with? Or, does the suburb have an ageing population? Understanding your local community is key to your ongoing marketing plan, and will help you keep high occupancy levels.

The blue sky!

When you consider buying a childcare centre, don’t forget to look for opportunities to increase revenue! This can be done by fee increases, building extensions, better management or staff rosters, or simply streamlining current administrative practices. Look at the long-term ways you can build up the centre.


If you found this blog useful you might also like:

Childcare Business in NSW, Sydney – Why Everybody Wants In!

A Buyer’s Guide for Childcare Centre investment

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