What Influences the Value of My Childcare Business?

When thinking about selling your childcare business, valuing your business will be one of the first things you think about.

After receiving your Business Valuation Guide, it is important to consider the various factors that influence the value of your childcare business and the price that can be achieved upon completion:

• Ofsted ratings significantly impact the value of childcare businesses, with ‘Very Good’ and ‘Outstanding’ ratings adding value.
• Location plays a vital role in valuation, as settings in areas with high childcare demand and those near to schools, workplaces and commuter routes may be considered more desirable to potential buyers.
• A strong local reputation with high occupancy levels and a robust waiting list for future places will boost your business’s valuation.
• Staffing costs, retention rates and management structure impact the operational stability of your business and add value.
• External factors, such as government funding policies and changes in childcare legislation, can all influence the future profitability of your business and its overall value.

Like any business, there any many factors that can influence the value of your childcare setting, but it is worth addressing the particular issues that impact your sale price of your childcare business so that you can achieve the maximum value.