Source: ChildCareEd
Description: Before buying a child care center, request and review licensing and inspection reports, accreditation documentation, capacity and enrollment history, complete financial records (profit & loss, balance sheet, tax returns) and any outstanding liabilities or regulatory violations. Evaluate staffing by obtaining current rosters, proof of qualifications and certifications (e.g., CPR, early‑childhood credentials), background‑check files, turnover metrics, and payroll and benefits obligations. Also inspect the facility condition, equipment inventory, safety/compliance records, and confirm lease terms or property ownership. Clarify operational details such as tuition and fee schedules, parent contracts and deposit/refund policies, waitlist size, curriculum and daily schedules, and primary marketing/referral sources, and ask why the owner is selling. Finally, retain a CPA, an attorney and an early‑childhood consultant to complete due diligence and plan the transition.
