Sell Your Childcare Centre in Melbourne and Victoria

By Michael White, Director and licensed estate agent · Updated October 2026

Childcare centres are some of the most sought-after businesses in Victoria, but they are also some of the most regulated to sell. A buyer is taking on provider and service approvals, the Child Care Subsidy, qualified staff and families who trust the centre with their children. Vic Brokers has sold childcare centres in Melbourne and regional Victoria since 2017, and we plan the approval steps from the start, so they don't hold up settlement.

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A large and active market

Victoria has more approved education and care services than any other state except NSW: 5,033, including 2,155 long day care services, according to the ACECQA NQF Snapshot Q2 2026. Buyers range from first-time owners with an early childhood background, to multi-site operators expanding into new suburbs, to investors who own the property or want a stable, government-supported income.

What buyers look for

Occupancy. Enrolments against approved places, the trend over the last two to three years, and the waitlist.
Quality rating. The centre's rating against the National Quality Standard. Meeting or Exceeding NQS supports the price; Working Towards NQS needs a clear improvement plan.
Compliance history. Regulator visits, notifications, incidents and any compliance actions.
Staff. Qualified educators, a stable team and a nominated supervisor and educational leader who are likely to stay. Staffing is the biggest cost and the biggest risk buyers assess.
The premises and lease. A purpose-built or well-adapted site, outdoor space that meets requirements, and a long lease with options.
Fees and subsidy. Daily fees compared with nearby centres, and clean Child Care Subsidy records.

What affects the value

Childcare centres are usually valued on adjusted net profit, and often also compared on a price per approved place. Where a centre lands in its range depends on:

Occupancy and approved places. High, stable occupancy is the single biggest driver. Approval for more places, or room to add them, can add value.
Quality rating and a clean compliance record.
Wages as a share of revenue, and whether the roster meets ratios without relying on agency staff.
The lease: years remaining, options, rent reviews and the landlord's attitude to assignment.
Owner reliance. Centres where the owner is also the nominated supervisor or educational leader need a handover plan.

How the approval transfer works

This is where childcare sales differ most from other businesses, so it pays to plan it early.

Provider approval. The buyer must hold, or obtain, provider approval under the Education and Care Services National Law. In Victoria, the regulator is the Department of Education.
Transfer of service approval. The seller and buyer jointly notify the regulator of the transfer at least 60 days before it is to take effect. The regulator can intervene; if it doesn't, it is taken to consent.
Families. Families must be told at least 7 days before the transfer takes effect, and the regulator is notified within 2 days after.
Child Care Subsidy. The buyer also needs approval from the Australian Government to administer the Child Care Subsidy for the centre. Allow time for this alongside the service approval.
Lease. The landlord's consent to assign the lease runs in parallel.

These timeframes mean a childcare sale usually needs a longer gap between contract and settlement than other businesses. We set the timeline with you, your solicitor and the buyer at the contract stage.

Things to prepare before selling

Three years of financials, reconciled to tax returns and Child Care Subsidy statements
Occupancy and enrolment reports by room, plus the waitlist
The latest assessment and rating report, and any compliance correspondence
Staff list with qualifications, Working with Children Checks, and leave balances
Policies and procedures, and the quality improvement plan
The lease, and any equipment or vehicle finance

How we keep the sale confidential

News of a sale can unsettle educators and families. We advertise without naming the centre or its suburb, screen buyers before they see any details, and require a signed confidentiality agreement before releasing figures or the location. Inspections are arranged outside operating hours where possible.

Frequently asked questions

How are childcare centres valued?

Mainly on adjusted net profit, often cross-checked against a price per approved place. Occupancy, the quality rating, wage costs and the lease all move the price within that range.

How long does it take to sell a childcare centre?

Most businesses we sell receive an acceptable offer within 2 to 6 months. Settlement then takes longer than most businesses, because the transfer of service approval must be notified to the regulator at least 60 days ahead and the buyer needs Child Care Subsidy approval.

Does the buyer need provider approval?

Yes. The buyer must be an approved provider before the service approval can transfer to them. Buyers who are already approved providers can usually move faster.

When do families and staff need to be told?

Families must be notified at least 7 days before the transfer takes effect. Until a buyer is committed, we keep the sale confidential, and then plan the timing of the staff and family announcements with you.

Can you sell a centre if I also own the property?

Yes. You can sell the business and the property together, or sell the business and lease the property to the buyer. As licensed estate agents, Vic Brokers can handle both.

Thinking of selling?

Start with a free, confidential appraisal. You'll get a realistic price range and a clear picture of what's helping or holding back your centre's value.

Call (03) 9918 6739 or request your free appraisal. You can also read about selling your business with Vic Brokers.