December 2024

This article explores the valuation process for CWELCC and non-CWELCC childcare centres, focusing on the use of EBITDA multipliers to determine sale value. While non-CWELCC centres follow standard methods, CWELCC centres face unique challenges due to profit caps and regulatory complexities, often leading to undervaluation. Key factors influencing valuation include lease terms, goodwill, and operational stability, which can offset lower profitability. Ultimately, the final valuation depends on the buyer’s priorities, risk tolerance, and perception of long-term benefits.