Why Do Owners Sell Their Daycare Centres?

You might wonder — if daycare centres are a good business, why would anyone want to sell one?

There are several common reasons:

1. Retirement

Many daycare owners have been in the business for 20+ years and are ready to retire. In many cases, their children aren’t interested in taking over the business, so selling becomes the only way to cash out. Some daycare centres are sold with the property included, while others are business-only.

Buying a daycare that includes the property is often a better long-term investment. You can read more about that in this article:
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2. It’s Not the Right Fit

Some owners enter the daycare industry expecting to love it — and some do. But others realize after a few years that it’s not the right fit for them. Running a daycare is demanding and requires a passion for early childhood education, strong leadership, and business skills. If that passion isn’t there, it becomes difficult to sustain.

3. The Business Is Struggling

Not every daycare thrives. Some centres – especially those not enrolled in the CWELCC (Canada-Wide Early Learning and Child Care) program – may face financial challenges. That said, many non-CWELCC centres perform very well depending on how they’re managed, marketed, and positioned.

A struggling daycare isn’t necessarily a bad purchase. Starting a brand-new centre means starting with zero students. But buying an underperforming centre that’s already 50% full gives you a significant head start. It’s like buying a gingerbread house kit instead of baking everything from scratch — you still need to build it, but some of the hardest parts are already done.  

Conclusion

There are many reasons a daycare centre may come up for sale — and not all of them are negative. Whether due to retirement, a change in passion, or business challenges, these situations can present great opportunities for the right buyer. With the right mindset and strategy, purchasing an existing centre can be a smart and rewarding investment.

Child Care Centre Business Owner