How does buying an existing daycare compare with opening a new one?
An existing daycare brings enrolled families, trained staff, routines and premises already set up, with handover risk in keeping staff and parents. A new centre lets you choose the location, layout, team and program, with ramp-up risk while it fills. Weigh which risks you are better placed to manage.
Both routes lead to a running centre, and each puts the effort in a different place. Buying shifts the work to the handover. Starting new shifts it to the first months, when the centre has to attract families and build a team. Seeing the trade-offs side by side helps you decide which risks you would rather carry.
What an existing centre brings
A centre that is already running comes with enrolled families, often a waitlist, staff who know the children, established routines and premises set up for the purpose. You start with a business that functions on day one. What you inherit also includes the way things are done today, which you may want to change slowly.
What a new centre lets you choose
Starting new lets you pick the location, design the space, hire the team and shape the program from the beginning. You carry no history, good or bad. You also start with no families and no track record, so the early months depend on how quickly you can earn trust in your area.
Handover risks when you buy
The main risks are losing staff and parents when ownership changes, and relying on an owner whose role is hard to replace. Ask how the owner is involved day to day, how the team and families will be told, and how long the owner will help. Licensing and staffing requirements are best confirmed with the licensing office, and your lawyer can explain what carries over in a sale.
Ramp-up risks when you start
A new centre may need licensing approval, equipment, staff and families, and each of these takes time. Ask the licensing office what approvals are needed and how long they usually take. Compare that timeline honestly with the support you would have. The comparison of buying and starting covers the wider question.
Related reading
15 pages on the same subject, grouped by topic.
Valuation
Buying
- ComparisonBuying a business vs starting one
- Expert answerDoes a child care licence transfer when you buy a daycare in Manitoba?
- Expert answerCan I put some of the assets I’m buying into a second company?
- GuideBuying a moving company in Canada
- Expert answerShould you buy an existing campground or build one on raw land?
- Expert answerShould you buy a daycare franchise or an independent centre?
- Expert answerWill daycare staff stay after I buy the centre?
Selling
Due diligence
Sources
This answer is checked against primary sources. Links were last confirmed on the dates shown.
- 01Government of AlbertaGovernmentLicensed facility-based programs
- 02Government of ManitobaGovernmentBest Practices Licensing Manual for Early Learning and Child Care Centres
- 03Business Development Bank of CanadaGovernmentWhat are the steps to buying a business?
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