Will daycare staff stay after I buy the centre?
Staff may stay, but nothing guarantees it. You improve the odds by identifying the key educators and the supervisor, meeting them before closing with the seller’s agreement, keeping routines and schedules steady at first, and being clear about what will not change. Ask your lawyer what the purchase agreement should say about employees.
A daycare runs on its educators. Families choose a centre partly because of the people in the room, and your licensing office can tell you what staffing must be in place on the first day of new ownership. Staff are also the first to feel uncertain when a centre is sold. This page covers what a buyer can do to keep a team together, and what to leave to your lawyer and the seller.
Identify who matters most
Start with the supervisor or director, then the educators whom children and parents know best. Ask the seller who holds the centre together day to day, who covers absences and who trains new hires. These are often not the people with the longest titles. Their departure would be felt immediately, so you want to know who they are before you sign anything.
Meet the team before closing
Once the seller agrees on timing, ask for a conversation with the supervisor and then a short introduction to the team. Listen more than you speak. Staff want to hear who you are, what you intend to keep and what you do not yet know. Honest answers calm a room better than promises. Your lawyer can tell you how employee terms are handled in the deal you are making.
Know what unsettles a team
Staff worry about hours, pay, schedules, rooms and who they report to. Sudden changes to any of these in the first weeks tend to produce resignations. Keep routines steady, introduce changes slowly and explain the reason for each one. If you plan to change the program or the way the centre is led, say so early rather than letting rumours fill the gap.
Keep the supervisor through the transition
Many buyers ask the seller to stay for a period to help with the handover, and ask the supervisor to confirm they intend to continue. Ask your lawyer whether any written arrangement is appropriate. The lender may also want to know who will run the centre. A supervisor who feels respected and informed is one sign that the team may stay.
Related reading
15 pages on the same subject, grouped by topic.
Buying
- Expert answerHow does buying an existing daycare compare with opening a new one?
- GuideBuying a daycare business in Canada
- Expert answerShould you buy a daycare franchise or an independent centre?
- Expert answerWhat do buyers of a home care agency often underestimate?
- GuideHow to buy a daycare in Newfoundland and Labrador: licences, ownership rules and what transfers
- Expert answerDoes a child care licence transfer when you buy a daycare in Manitoba?
- Expert answerWhat should I check before buying a dog daycare?
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- Expert answerShould I buy an existing wellness centre or start one?
Due diligence
Selling
Sources
This answer is checked against primary sources. Links were last confirmed on the dates shown.
- 01Business Development Bank of CanadaGovernmentAfter buying a business, what is the next step?
- 02Business Development Bank of CanadaGovernmentHow to conduct due diligence when buying a business
- 03Government of Ontario — Ministry of EducationGovernmentChild Care Centre Licensing Manual
- 04Government of Ontario — Ministry of EducationGovernmentAppendix C — Sales of assets / shares of a corporation
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