Daycare Valuations
It is estimated that in over 60% of two-parent households, both parents are employed. As parents become increasingly busy, the need for quality childcare services is at an all-time high. If you are looking to buy, expand, or sell a daycare, now is a great time to do so. However, it is important to understand a daycare’s value and growth potential before taking the next step. By obtaining a daycare valuation, you can learn how to establish a successful daycare.
As a professional business appraiser, Peak Business Valuation provides daycare valuations across the country. In this article, we discuss the daycare evaluation process. Several headings throughout the article are linked to additional resources on how to value a daycare. Check out these links to learn more!
Peak Business Valuation is happy to help you with a daycare valuation! In addition, we can answer any questions you may have about valuing a daycare. Start now by scheduling a free consultation with Peak Business Valuation below!
Valuing a Daycare
Valuation experts consider various factors when performing a daycare evaluation. The valuation process includes an analysis of financial statements to gather important data. This information helps valuation analysts determine the best valuation method(s) for your daycare. At Peak Business Valuation, our business appraisers commonly use the market, income, and asset approaches. The market approach is particularly common as it utilizes daycare multiples. We discuss daycare evaluation multiples and the market approach in the following section.
Business owners receive a daycare evaluation report at the end of a daycare business valuation. This document outlines the fair market value of the daycare and highlights its strengths, weaknesses, risks, and opportunities. For more information on how to value a daycare, schedule a free consultation with Peak Business Valuation.
Valuation Multiples for a Daycare
Business appraisers apply valuation multiples when valuing a daycare with the market approach. These financial ratios measure the business’s value based on financial metrics such as sales, earnings, or cash flow. Some popular daycare multiples include SDE multiples, REV multiples, and EBITDA multiples. The valuation expert will determine the most relevant multiples for a daycare during a daycare valuation. For more details, check out Valuation Multiples for a Daycare.
Value Drivers for a Daycare
Next, valuation experts identify a daycare’s key value drivers. Value drivers are factors that affect a daycare’s overall performance. Understanding a daycare’s value drivers can help you make pivotal adjustments to maximize the value of a daycare.
One of the most important value drivers for daycares is having strong parent relationships. Building trust with parents can boost your reputation and promote repeat business. In addition, daycares need to secure a prime location. Daycares near large populations are more likely to succeed. To learn more, check out Value Drivers for a Daycare.
After assessing these factors and more, valuation experts compare your daycare’s performance to industry competitors. This can help you identify areas of improvement for your daycare that can increase the value of a daycare.
How to Value a Daycare
Valuation analysts may use a combination of valuation approaches to determine a daycare business’s value. At Peak Business Valuation, our valuation analysts commonly use the market approach and income approach. The market approach determines a daycare’s value using daycare multiples and comparing similar daycare centers on the open market. Alternatively, the income approach assesses the daycare’s future cash flow potential and risks. Combining these methods fosters a more accurate daycare evaluation. See How to Value a Daycare for more guidance.
Business Valuation for Buying a Daycare
A business valuation is an essential tool when buying a daycare. Business appraisers will provide insights into the fair market value of a daycare center. In addition, the valuation report summarizes the daycare’s strengths, weaknesses, risks, and opportunities. These insights can help you develop a negotiation strategy to secure a fair purchase price. To learn more, see Business Valuation for Buying a Daycare.
As a business appraiser, Peak Business Valuation frequently helps individuals buy daycare centers. We are happy to provide a daycare valuation and answer any questions you have on valuing a daycare center. Schedule a free consultation with Peak Business Valuation to get started!
Business Valuation for Selling a Daycare
A daycare evaluation can also help you sell a daycare. It is crucial to have a clear understanding of a daycare’s value before selling it. A business valuation for a daycare can help you set a listing price that reflects its true value. In addition, a daycare appraisal can help you identify ways to increase the value of a daycare and maximize your return on investment. Reach out to Peak today!
Gift and Estate Valuation for a Daycare
If your daycare is part of your estate, it is important to receive a gift and estate valuation. Gift and estate valuations can be useful for planning. For instance, a gift and estate valuation can help you maximize tax benefits and minimize liabilities. These business valuations are also useful if you plan to gift a daycare to family members. Schedule a free consultation with Peak Business Valuation to learn more.
Be sure to see Gift & Estate Tax Valuations if you have any questions.
SBA Financing for a Daycare
Starting, expanding, or buying a daycare can come with financial stress. If you need financing for a daycare, SBA loans are an ideal option. These loan programs offer long repayment terms, low interest rates, and competitive down payments. The Small Business Administration also backs SBA loans. This makes it easier to qualify for SBA financing for a daycare.
Peak Business Valuation works with over 90 SBA lenders across the country. We can help you connect with an experienced SBA lender for daycares. Peak can also help provide an SBA business valuation for a daycare. Check out SBA Loans for Daycares for more information.
Peak Business Valuation, business appraiser, is happy to provide a daycare valuation. If you have any questions about how to value a daycare or valuing a daycare, schedule a free consultation with Peak Business Valuation below!
