Child Care
Centres
Sydney, Melbourne, Brisbane
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Buying a Child Care business is like buying any businesses.
You must assess the risk and reward equation; am I getting a
fair reward for the risk I am taking with the capital I am
investing?
Like any
business the price of a centre is based on an acceptable
multiple of profit under management, that is, with the owners
not working in the business.
The multiple
paid for a Child Care Centre Business is determined based on
many factors which will be unique to each Child Care Centre.
Child care
Centres are necessary to keep the economy going, allowing many
people to enter the work force or study and up skill, this
helps to alleviate the skill shortage we have in Australia.
For this reasons the Federal Government developed the Child
Care Benefit System (CCB). Families earning less than approx
$130,000 p.a will receive a reduction in their fees at the
centre. With some centres receiving up to 90% of their income
from the Federal Government. The typical centre receives
40-60% of their revenue from the Federal Government. Families
also receive a 50% rebate on fees they have had to pay to a
centre up to a threshold.
Child Care,
Kindergartens, Long Day Child Care Centres, Day-care Centres
are all typically different names for the same service. The
industry is highly regulated by State and Federal bodies and
this means you need to always ensure you operate within the
rules.
Child Care
Centres can be a solid investment for active or passive
investors with several Management Companies providing
consultative services on an ad-hoc basis to complete
management of the centre and everything in between, we are
only too happy to introduce you to these companies.
Child Care businesses are a part of the community and as stand
alone businesses, managed and run well, can pay strong and
consistent profits.
