What Is My Preschool Worth?

Preschools share many valuation characteristics with daycares but often command slightly higher multiples due to educational positioning, parent willingness to pay premium tuition, and the curriculum-driven model.

Typical Valuation Ranges

Most preschools sell for 2.5x to 4x SDE.

Factors that push toward the higher end: Full enrollment with waitlist, accreditation (NAEYC, state quality ratings), strong reputation and community standing, owned facility, revenue above $500K, experienced teaching staff with low turnover.

Factors that push toward the lower end: Below 75% enrollment, owner is the lead teacher and director, high staff turnover, no accreditation, short remaining lease, aging facility.

Key Value Drivers

Enrollment and demand — a preschool at full capacity with a waitlist demonstrates market demand. Every empty slot is lost revenue against fixed costs.

Accreditation and quality ratings — NAEYC accreditation and state quality improvement ratings signal quality to parents and support premium tuition.

Staff quality and retention — qualified early childhood educators are scarce. A stable, experienced teaching team is the most important operational asset.

Curriculum and brand — a recognized educational philosophy (Montessori, Reggio, play-based) creates parent loyalty and differentiation.

How to Increase Your Value

1. Fill enrollment. Marketing, community partnerships, and parent referral programs maximize capacity utilization.
2. Pursue accreditation. NAEYC or state quality ratings justify premium tuition and differentiate your program.
3. Retain teachers. Competitive pay, professional development, and supportive culture reduce turnover.
4. Document your curriculum. Written curriculum guides, lesson plans, and assessment tools make the educational program transferable.
5. Secure your facility. Long-term lease or owned property with adequate outdoor space.

Browse the valuation multiples guide for industry data, or schedule a free call for a confidential valuation.