What is my daycare or child care center worth?

Licensed child care centers sell at some of the highest SDE multiples on main street, averaging 3.28× on BizBuySell. Buyers pay for licensed capacity, enrollment and staff that stay, and they look closely at state licensing history.

Avg SDE multiple

3.28×

Typical range

1.94–4.03×

Avg revenue multiple

0.88×

Median sale price

$380K

BizBuySell industry row: Day Care and Child Care Centers, plus BizBuySell's day-care sold-business quartiles. Range is BizBuySell's sold-business lower to upper quartile (median 2.72×). Median sold business: $584,126 revenue, $132,779 owner earnings. Source: BizBuySell — Business Valuation Multiples by Industry (businesses sold Q3 2021–Q2 2026); BizBuySell — Day Care & Child Care Valuation Benchmarks (sold 2021–2025, 425 sales analyzed).

Value your daycare or child care center

Let's estimate what your business is worth. Seven quick questions, no email needed.

Trade: Daycare / child care ·

Which state is it in?

Worked example

Hypothetical. A licensed center for about 70 children, close to BizBuySell's median sold child care business (about $584K revenue and $133K owner earnings). Tuition is billed weekly; a director runs daily operations.

Revenue $585,000, owner earnings (SDE) $133,000, 11 years, about 85% recurring, “I manage, my team does the work”.
Start at the published 3.28× average.
Owner involvement: I manage, my team does the work: +0.15×. Buyers pay more when the business runs without the owner.
Recurring revenue 60%+: +0.25×. Contracts and memberships make next year's revenue predictable.
11 years in business: +0.10×. Long, proven history.
Owner earnings $75K–$150K: -0.10×. Below the typical sold main-street business.
Adjusted multiple 3.68× × $133,000 = $489,000, range $290,000 – $604,000.
Revenue cross-check: $585,000 × 0.88× = $515,000.

What raises the price

High enrollment against licensed capacity, with a waitlist
A clean state licensing and inspection record
A director and lead teachers who will stay
Steady tuition on autopay; subsidy contracts paid on time
A long lease or owned building that is already licensed for child care

What lowers it

Owner serving as the licensed director
Staff turnover or ratio problems
Recent violations or complaints on the state record
Heavy reliance on one subsidy program or employer contract
A home-based license that can't transfer

Calculating SDE for a daycare or child care center

Start from net profit on your tax return or P&L, then add back:

Owner salary and payroll taxes
Owner's personal vehicle, phone and insurance
Depreciation on playground equipment and furnishings
Interest on loans
One-time licensing, legal or renovation costs

Only add back what a buyer can verify. See SDE explained: how to calculate owner earnings and add-backs for a full walkthrough.

If there are two working owners, the second owner's salary usually stays as a cost, because a buyer will need to replace that person.

Questions

Does the child care license transfer to a buyer?

Usually not automatically. Most states require the new owner to apply for their own license, and the sale is often timed around that approval. Check your state's licensing agency early.

Why is the daycare range so wide?

BizBuySell's sold child care quartiles run from 1.94× to 4.03× SDE. Larger centers with full enrollment and a non-owner director sit at the top; small centers run by the owner sit at the bottom.

How this estimate works

We start from the published average multiple for businesses in this category that actually sold, adjust it for owner involvement, recurring revenue, track record and size, and apply it to your owner earnings. Read the full valuation methodology, including what we don't do.

Related trades

Compare other trades

Trade	Avg SDE multiple	Avg revenue multiple	Median sale price	Basis
Plumbing	2.61×	0.69×	$699,000	Trade row
HVAC	2.83×quartiles 1.99–3.33×	0.60×	$750,000	Trade row
Electrical	2.77×	0.63×	$1,009,000	Trade row
Landscaping	2.49×	0.72×	$449,950	Trade row
Pool service / routes	2.61×	0.83×	—	Sector average (no trade row)
Pest control	2.46×quartiles 1.69–3×	1.01×	$250,000	Trade row
Cleaning	2.25×	0.72×	$281,500	Trade row
Roofing	2.65×	0.59×	$750,500	Sector average (no trade row)
Auto repair	2.85×	0.65×	$430,000	Trade row
Salon / barbershop	2.10×	0.52×	$117,375	Trade row
Restaurant	2.18×quartiles 1.34–2.53×	0.39×	$220,000	Trade row
Daycare / child care	3.28×quartiles 1.94–4.03×	0.88×	$380,000	Trade row
Dental practice	2.75×quartiles 1.6–3.37×	0.76×	$350,000	Trade row
Gym / fitness center	2.54×quartiles 1.72–3×	0.70×	$204,000	Trade row
Insurance agency	2.87×quartiles 1.88–3.44×	1.52×	$500,000	Trade row
Accounting / tax / bookkeeping	2.27×quartiles 1.61–2.66×	1.08×	$450,000	Trade row
Moving company	2.52×quartiles 1.8–3.11×	0.63×	$350,000	Trade row
IT services / MSP	3.22×quartiles 2.2–3.87×	1.08×	$726,800	Trade row
Locksmith	2.35×	0.75×	$300,000	Trade row
Pet grooming	2.30×quartiles 1.38–2.51×	0.63×	$152,500	Trade row
Other main-street business	2.61×	0.83×	$350,000	General main-street range

Source: BizBuySell, Business Valuation Multiples by Industry, businesses sold Q3 2021–Q2 2026; quartiles from BizBuySell's per-industry valuation benchmark pages (sold 2021–2025). Pool and roofing use sector averages; “Other” uses the Service Businesses sector. Retrieved Oct 30, 2026.

Estimates for information only; not an appraisal or an offer. MainStreetKeys is not a business broker. Data retrieved Oct 30, 2026.