Childcare & Nursery Business — Business Valuation Multiple
EBITDA Valuation Guide · Small & Mid-Sized Businesses
Actual EBITDA multiples can vary materially based on EBITDA size, growth, recurring revenue, margins, customer concentration, owner dependence, geography and other company-specific factors.
Min
3×
Typical
4.5×
Max
6×
Revenue Model
Recurring
Capital Intensity
Medium
A typical multiple of 4.5× EBITDA reflects mid-market transactions in the $1–$50M revenue range.
Overview
Childcare and nursery businesses typically trade at 3×–6× EBITDA. Strong regulatory inspection ratings, high occupancy with waiting lists, and a blend of government-funded and private-fee income support valuations. A qualified nursery manager in place and stable, experienced staff team reduce key person risk. Regulatory inspection downgrade risk and staff qualification requirements are the most significant risk factors for buyers.
Key Value Drivers
- Strong regulatory inspection rating
- High occupancy with waiting lists
- Government funded hours supplemented by private fees
- Qualified nursery manager and stable team
- Freehold or long-lease premises
Key Risks
- Regulatory inspection downgrade risk
- Staff recruitment and qualification requirements
- Government funded hours below cost of delivery
- Parental affordability sensitivity
- Building and safety compliance
Related Industries
Disclaimer: All multiples are indicative estimates only and are not formal valuations or investment advice. They should not be relied upon for financial decision-making without independent professional advice.