Does anyone have experience acquiring a Daycare| Child Care business?

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March 04, 2025

by a searcher from Massachusetts Institute of Technology - MIT Sloan School of Management in Dallas, Texas, EE. UU.

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Reply by an intermediary
from University of Florida in Nashville, TN, USA
I heard that people value this kind of business on a "per baby" basis instead of cash flow ... jk
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Reply by a lender
from University of Southern California in Los Angeles, CA, USA
I’ve been involved on the SBA financing side for daycare acquisitions, and I’ve seen clear differences between successful deals and those that struggled. Here are a few key takeaways:

1.Waitlist = Slam Dunk – If there’s a waitlist, that’s a strong sign of demand. But things can change fast, so confirm long-term sustainability and market trends.

2.Future Growth Potential – Don’t just buy based on today’s numbers—look at where the area and demographics will be in 5 years. Population growth, new housing developments, and income trends can make or break future success.

3.Strong Staffing & Culture – A daycare is only as good as its team. The best acquisitions have employees who love their job, low turnover, and a positive culture. If the staff is disengaged or constantly leaving, that’s a red flag

4. Owning the Real Estate is a Game Changer – Buying the property instead of leasing builds long-term wealth and stability. Real estate ownership provides control over costs, protects against rising rents, and adds a valuable asset to your portfolio.

.I’d love to help you find the right SBA lender for this deal. We work with all the major SBA lenders. The bank pay us after your loan closes, so this is a 100% free service for you. Depending on the DSCR, I think this deal might qualify for pristine pricing if you are buying with real estate (7.63% fixed). You can reach me here or directly at redacted You can also click here to schedule a meeting with me: https://cal.com/ishan-jetley-3d73m8/30min. Look forward to chatting!
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