The child care business experts at ChildCareOwner provide complete child care business acquisition analysis. Once you have identified a potential child care business for sale that you are considering purchasing, our experts can provide the analysis, feedback, valuation, quality of earnings analysis, and reports to help you determine if the business could make a good acquisition based on your desired acquisition target, deal structure, return on investment and ability to maximize post-closing revenues and profitability.
(Note: ChildCareOwner does not provide acquisition searches, mergers, acquisition services, or buyer representation. Our services focus on acquisition analysis only.)
ChildCareOwner provides a personalized child care business acquisition analysis. We tailor our analysis to cover the specific needs and desired services of the buyer, providing a written, custom proposal that includes all the necessary reports.
Child Care Business – Demographics and Market Analysis
As with a home, commercial property, or a child care business, location can make the difference between failure and a successful business operation now and in the future. We provide comprehensive market demographic reports and competitor analysis. We conduct a market tuition rate study to determine current tuition rates offered by child care providers in the area.
Child Care Business – Demographics and Market Analysis: $1,000 to $2,000
Business Valuations
Child Care Business Market Price Range
Our Child Care Business Market Price Range Report consists of 15 – 20 pages, prepared by a NACVA Certified Business Valuation Analyst and specialized child care Mergers and Acquisition Specialist. This Market Price Range is most appropriate for childcare businesses with gross revenues of less than $1,500,000. This entry-level report provides essential information for establishing a market price range for a childcare business to be utilized in developing an offer to purchase or an initial assessment of the viability of the asking price of the childcare business.
Child Care Business Market Price Range: $1,250 – $1,750
Standard Child Care Business Valuation (Non-Certified)
Our Standard Child Care Business Valuation (Non-Certified) Report consists of 30 – 40 pages, prepared by a NACVA Certified Business Valuation Analyst and specialized child care Mergers and Acquisition Specialist. Our Standard Child Care Business Valuation (Non-Certified) Report is most appropriate for child care businesses with gross revenues in excess of $1,500,000. This analysis and report can be utilized when buying or selling a child care business and business planning decisions. The valuation summary includes the development of a value range utilizing the market approach, asset approach, and income approach with analysis, financial recasting, and development of SDE or EBITDA multiples (as most appropriate), capitalization of earnings method. The report also includes industry benchmarking against peer companies, examining profitability, liquidity, debt, and asset management ratios. This analysis and report can be utilized when buying or selling a child care business and business planning decisions to assess your business’s performance compared to competitors and identify aspects of your child care business that can be improved, resulting in higher profitability and value.
Standard Child Care Business Valuation (Non-Certified): $2,500 – $3,500
Certified Child Care Summary Business Valuation
Certified Valuation Reports must be prepared by a certified business valuation analyst or certified business appraiser. Our Certified Child Care Business Valuation Reports are prepared by a NACVA Certified Business Valuation Analyst who specializes in analyzing and valuing child care businesses. This detailed 50+ page report is a comprehensive report that is most often utilized in the valuation of larger child care businesses, multi-unit business locations, or more complex business acquisitions and divestitures.
Certified Child Care Summary Business Valuation: $4,000 – $8,000
Quality of Earnings (QoE Reports)
A Quality of Earnings Report gives child care buyers more insight into a child care business’s financial performance and more to rely on than what is represented by in-house financial reports, the owner, or a representative of the business owner. These reports are essential for anyone looking to acquire a child care business—large or small. Our NACVA–certified analyst reviews the past financial performance of the child care business to judge not only the quality of earnings but also the likelihood of future earnings.
A quality of earnings report is a vital document that provides investors and stakeholders with insights into a company’s financial performance and the sustainability of its earnings. This report goes beyond the surface-level numbers and delves into the underlying factors that drive a company’s profitability.
When preparing a quality of earnings report, analysts evaluate various aspects of a company’s financial statements, such as revenue recognition, expense management, cash flow generation, and accounting practices. By conducting a thorough analysis, they can identify any irregularities or one-time events that may impact the accuracy of the reported earnings. Child care business buyers can rely on the quality of earnings reports to make informed decisions about investing in a company.
Quality of Earnings Range: $3,000 – $15,000
