Does my rating really affect the sale price?

Yes, and more than owners expect. It is public, it is the first thing a buyer checks, and Working Towards signals inherited regulatory work. Lifting a rating before going to market is usually worth more than any presentation improvement.

Can I sell if occupancy is below 80%?

Yes. It changes who buys and at what price, because you move from a stable-asset conversation to a turnaround one. Buyers who specialise in lifting occupancy are active, but they price for the work involved.

Is the building included in the sale?

Often not. Many centres trade as a business with the premises leased, and where the owner also holds the freehold the two are usually handled as separate transactions with a lease put in place between them.

How long does the regulatory side actually take?

It is the main driver of the 120 to 240 day range. Provider approval for the buyer, transfer of service approval and subsidy approval all sit outside the control of either party, so the practical answer is to start them as early as the deal allows.

Selling a Childcare Centre in Australia

Childcare centres attract the highest multiples in the Australian SME market, typically 3× to 5× EBITDA and most often between $500,000 and $3 million. They also take the longest to sell, around 120 to 240 days, because the regulatory transfer cannot be rushed.

If you own a long day care centre, preschool or OSHC service, this page covers what yours is likely worth, how occupancy and your rating change the number, and what buyers examine before they commit.

Typical multiple: 3× - 5×
Typical sale price: $500k–$3m
Time to sell: 120–240 days
Buyer demand: High

What childcare and OSHC businesses sell for

The headline range is 3× - 5× EBITDA, but where you land inside it depends heavily on the size of the business. Larger businesses attract higher multiples, because buyers see less risk and more management depth.

Annual EBITDA	Typical multiple
Under $100k	0.8× – 1.8×
$100k – $250k	1.2× – 2.4×
$250k – $500k	1.6× – 3×
$500k – $1M	2.2× – 4×
$1M – $2.5M	3× – 5×
$2.5M – $5M	3.8× – 6.5×
$5M – $10M	5× – 8×
$10M+	6× – 10×

The reason childcare sits at the top of the multiple range is the barrier to entry. A buyer cannot simply open a competing centre down the road: they need approvals, a compliant premises and staff who are already scarce. That difficulty is what you are selling, and it is why corporate operators pay well for established services.

How long it takes to sell

One hundred and twenty to two hundred and forty days is the longest range of any sector we cover, and almost none of it is finding a buyer. Demand is strong. The time goes on regulatory transfer, because the incoming operator needs their own provider approval and the service approval has to be formally transferred, with notice to the regulator. Subsidy approval for the new operator runs alongside it. None of this can be compressed by motivated parties, so it should start early.

The five things buyers pay for

Occupancy rate (80%+ ideal)

Occupancy is the number every buyer opens with. Above 80% sustained across the year supports the top of the range. Buyers look at the trend rather than a single snapshot, and they will read a recent dip as either a seasonal pattern or a warning depending on what the previous twelve months show. Low occupancy is not fatal, but it moves you into a turnaround conversation and prices accordingly.

Licences, approvals & ratings

Your provider and service approvals, and your rating against the National Quality Standard, are public and permanent. A buyer looks these up before they contact you. An Exceeding rating is a genuine asset. Working Towards is a discount, because the incoming operator inherits the improvement plan and the regulator attention that comes with it.

Qualified educator ratios

Qualified educators are the scarcest resource in the sector. A centre that meets ratios with a stable, qualified team is worth materially more than one carrying vacancies or leaning on agency staff. Buyers will want to know who is staying, particularly the nominated supervisor and the educational leader.

Waitlist length

A waitlist is proof of demand that occupancy alone cannot show, because it says the centre could fill more places if it had them. Buyers treat a genuine, current waitlist as evidence the revenue is durable rather than dependent on marketing spend.

Location & catchment demographics

Buyers assess the catchment the way an operator would: the number of families with young children, what is being built nearby, and how many competing services sit within a few kilometres. A strong centre in a saturated catchment is valued differently to the same centre in a growing one.

Approvals, ratings and regulatory transfer

Childcare operates under the National Quality Framework, and two separate approvals matter. Provider approval belongs to the operator. Service approval attaches to the service itself. A buyer needs their own provider approval, and the service approval has to be formally transferred with notice to the state regulator. This is the main reason childcare sales take longer than other sectors.

Your rating against the National Quality Standard travels with the service and is published. Every serious buyer will have seen it before your first conversation, along with any compliance history. Where a rating is sitting at Working Towards, it is usually better to address the improvement plan before going to market than to negotiate against it afterwards.

Child Care Subsidy approval also needs to be in place for the incoming operator. If it is not, families lose their subsidy at settlement, which is the fastest way to lose occupancy in the first month of new ownership. Sequencing this properly is part of structuring the deal, not an afterthought.

What buyers will ask for

Occupancy across the last twelve months. Month by month, not an average. Buyers are looking for the trend and for how the centre handles the quieter part of the year.
Your current rating and compliance history. Public information, so assume the buyer already has it. Any breaches, conditions or improvement notices will be raised.
Staffing, ratios and qualifications. Whether ratios are met with permanent qualified staff, and which key people intend to stay after the sale.
Lease or freehold, and the terms. Whether the property is included, and if leased, how long is secure. Purpose-built premises with a long lease support the price.
Fee structure and subsidy mix. Daily rates against the local market, how much revenue is subsidised, and your family debt position.

Common questions

Does my rating really affect the sale price?: Yes, and more than owners expect. It is public, it is the first thing a buyer checks, and Working Towards signals inherited regulatory work. Lifting a rating before going to market is usually worth more than any presentation improvement.
Can I sell if occupancy is below 80%?: Yes. It changes who buys and at what price, because you move from a stable-asset conversation to a turnaround one. Buyers who specialise in lifting occupancy are active, but they price for the work involved.
Is the building included in the sale?: Often not. Many centres trade as a business with the premises leased, and where the owner also holds the freehold the two are usually handled as separate transactions with a lease put in place between them.
How long does the regulatory side actually take?: It is the main driver of the 120 to 240 day range. Provider approval for the buyer, transfer of service approval and subsidy approval all sit outside the control of either party, so the practical answer is to start them as early as the deal allows.

Find out what your business is worthFree valuation tool. Five questions, indicative range.Talk to a broker confidentiallyA 30-minute strategy call. No obligation.

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Before you sell

Is My Business Ready to Sell?The ten things buyers check before they make an offer, and what a strong answer looks like.
How Long Does It Take to Sell a Business?Time to sell by industry, the preparation timeline before listing, and what causes delays.
How to Sell a Business ConfidentiallyWhat actually leaks, how a confidential sale is controlled, and when to tell your team.

Last updated September 2026