What should I ask about waitlists when buying a daycare?
Ask to see the waitlist itself, with the dates families joined and the ages of their children. Find out how the list is managed, how often it is cleaned up, and how many families would actually take a space today. A long list is not the same as real demand.
Start with how the list is kept. A tidy record with dates, ages and contact details is a sign of a careful operator. A list kept in someone’s head or on scraps of paper tells you to ask more questions. Ask whether families pay anything to join, and what was promised to them about their place in line, since you inherit those expectations.
Then test it. Waitlists often hold families who have already found care elsewhere. Ask when the seller last contacted them, and consider calling a sample of names with the seller’s agreement. Look at the children’s ages against the rooms you have. A list full of infants will not fill a room for older children. Ask also how spaces are filled when they open, whether siblings and staff families get priority, and whether any of this is written down in the parent agreement. Your lawyer can read what was promised. Finally, ask how the seller thinks about growth: whether more spaces could be opened, and whether the list is a reason to expand or only a comfort.
Key takeaways
- Ask to see the list with join dates and children’s ages.
- Contact a sample of families to learn who is still waiting.
- Match children’s ages on the list to the rooms available.
- Find out what priority rules were promised to families.
Related reading
13 pages on the same subject, grouped by topic.
Buying
- Expert answerDoes a child care licence transfer when you buy a daycare in Manitoba?
- Expert answerShould you buy a daycare franchise or an independent centre?
- GuideBuying a daycare business in Canada
- Expert answerHow does buying an existing daycare compare with opening a new one?
- GuideHow do I buy a daycare in Ontario?
- Expert answerHow do I find a dog daycare for sale?
Legal
Due diligence
Sources
This answer is checked against primary sources. Links were last confirmed on the dates shown.
- 01Business Development Bank of CanadaGovernmentHow to conduct due diligence when buying a business
- 02Business Development Bank of CanadaGovernmentMajor pitfalls to avoid when negotiating a purchase agreement
- 03Business Development Bank of CanadaGovernmentUnderstanding post-merger operational integration
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