Sell or Buy a Daycare Business in Illinois

Your complete guide to childcare business transactions. Valuations, licensing, and DCFS compliance considerations.

Illinois Daycare Business Market

$425K
Avg. Sale Price
2.5-4.0x
SDE Multiple
4.0-6.0x
EBITDA Multiple
7,500+
IL Daycare Businesses

Daycare Business Overview

Illinois daycare and childcare centers serve working families with essential early childhood education and care services. The industry is heavily regulated but offers stable, recurring revenue and strong community ties.

Daycare businesses benefit from consistent demand, tuition-based recurring revenue, and waiting lists in many markets. Success depends on maintaining licensing compliance, quality staff, and strong parent relationships.

Daycare Business Valuation

Business TypeMultiple RangeBasis
Home Daycare1.5x - 2.5xSDE
Daycare Center2.5x - 4.0xSDE
Preschool/Academy3.0x - 4.5xSDE
Franchise Daycare3.0x - 4.0xSDE

Key Valuation Factors

  • Enrollment: Current enrollment vs. licensed capacity
  • Waiting list: Demand indicator and growth potential
  • Staff stability: Experienced teachers and low turnover
  • Facility: Owned vs. leased, condition, and compliance
  • Reputation: Parent reviews, accreditations, and community standing

Selling a Daycare Business

Key Selling Considerations

  • License documentation: Current DCFS license and compliance history
  • Enrollment records: Historical enrollment and retention data
  • Staff credentials: Teacher qualifications and certifications
  • Parent contracts: Enrollment agreements and policies
  • Facility compliance: Building, fire, and health inspections

Illinois Regulatory Compliance

  • DCFS (Department of Children and Family Services) License
  • Staff background checks and CANTS clearance
  • Child-to-staff ratio compliance
  • Health and safety inspections
  • Fire marshal approval
  • Food service licensing (if applicable)

Buying a Daycare Business

Key Buying Considerations

  • License transfer: DCFS license transfer requirements
  • Compliance history: Review inspection reports and violations
  • Staff retention: Meet key teachers before closing
  • Parent communication: Plan for ownership transition announcement
  • Facility assessment: Building condition and lease terms

Daycare Business Types

🏠 Home Daycare

Licensed home-based childcare.

🏫 Daycare Center

Commercial childcare facilities.

📚 Preschool

Early childhood education focus.

👶 Infant Care

Specialized infant programs.

🎒 Before/After School

School-age care programs.

🏢 Corporate Daycare

Employer-sponsored childcare.

Ready to Buy or Sell a Daycare Business?

Get expert guidance for your Illinois daycare business transaction.