The following process applies specifically to the share purchase a childcare centre enrolled in the CWELCC (Canada-Wide Early Learning and Child Care) program. CWELCC centres are subject to additional regulatory oversight, including coordination with the Ministry of Education (MOE) and Regional Service Managers. Operators must follow a strict timeline, provide advance notice, and complete several government forms in collaboration with the seller. Please note that the process for non-CWELCC centres is different and generally less complex, as it does not involve license transfer restrictions or CWELCC-related funding protocols.
Before Closing – Transition Preparation
- Introductory Meeting with Seller: A meeting is arranged between the buyer and seller to discuss transition logistics—how to notify staff, parents, stakeholders, governments. The MOE required that the staff and parents be notified no later than the closing date. A plan of how the notification will be carried out will be reviewed by the MOE. Most operators choose to notify the staff and parents between 2 weeks of closing to the day of closing – depending on their preferences.
- Notice to MOE and Region: The seller notifies the Ministry of Education (MOE) and the Region of the sale, including the closing date. The MOE and Region might request a copy of a fully executed copy of the Share Purchase Agreement.
- Transfer of Contact Info: The seller provides the buyer’s contact information to the Region and MOE so direct communication can begin.
- Forms & Collaboration: The buyer receives instructions and forms from the Region and MOE. Some of these forms may require assistance from the seller (e.g., past operational details). Typically, the region will request the Seller to terminate their CWELCC Service Agreement and then the Buyer to apply for a new CWELCC Service Agreement.
- Police Check (Vulnerable Sector Check): All directors should by now have obtained a police check (Vulnerable Sector Check) which will be submitted through the CCLS system on the day of closing. The Police check must be done without 6 months of closing. At the time of this article, it takes about 60 days to complete a VSC in the City of Toronto and about two weeks for York Region. Other regions will have different timing for the VSC. It’s recommended in a general rule of thumbs to start the request about 3 months before closing.
- Form Submission: After all required forms are submitted, the Region and MOE begin reviewing the application. No license transfer or confirmation will occur before closing. If there are mistakes in the forms, the Region and MOE will work with the buyer to correct them.
On Closing Day
- Transaction Completion: The sale closes—funds are transferred, and legal title changes.
- Form 1 Filing: The buyer’s lawyer must file Form 1 (Change of Director) and send it to both the Region and the MOE.
- Confirmation Emails: Both buyer’s and seller’s lawyers email the Region and MOE to confirm the transaction has officially closed.
- System Updates: The buyer and seller must update any applicable government systems, including CCLS (Child Care Licensing System).
After Closing
- MOE License Transfer: On the next business day after closing, MOE will transfer the daycare license to the new operator (the buyer).
- CWELCC Bank Info Update: The Region will follow up with the buyer to obtain new bank account information for CWELCC funding deposits.
⚠️ Key Timing Considerations
- MOE and Region require at least 60 days’ notice before the closing date to begin processing the sale.
- No license transfer will occur before closing—MOE will only transfer the license after the transaction is legally completed.
- The Agreement of Purchase and Sale (APS) should allow at least 65 days between firming the deal and the closing date to accommodate the process.
