Daycare and Preschools
January 08, 2025
by a searcher from Michigan State University in Portland, OR, USA
I am curious on the thoughts of Searchfunder members on the opportunity to acquire preschools / daycare centers. The two schools, both over $750k ebitda, that I have inquired about were already under LOI within days of them popping up on Biz BuySell. I don't hear this opportunity talked about much, but from what I can tell it seems to check many of the boxes we are looking for. Recurring revenue, recession resistant, enduringly profitable, not a discretionary spend for parents, fragmented industry with only a few large players. Based on my experience of a parent of two children, one challenge I see in scaling is the employees you need to make these successful. A good operator and teaching staff can absolutely make or break these centers.
Very interested in the thoughts of this community. Thanks!!
from University of Rhode Island in Portland, OR, USA
from Pace University in Seattle, WA, USA
1) Staffing: As you noted, finding and retaining quality educators and caregivers is crucial but can be difficult.
2) Regulatory compliance: Childcare centers face strict licensing and safety regulations.
3) High operational costs: Maintaining appropriate staff-to-child ratios and facility standards can be expensive. 4) Scaling challenges: Each location requires hands-on management and community integration.
Would love to hear from other people