5-Center Premium Preschool Group, Los Angeles County CA

$14.0M

Revenue

$3.8M

SDE

13.2x

Multiple

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Full Editorial Writeup

Five centers. One system. The largest childcare market in America. Los Angeles has enormous, durable demand for premium early education and a chronic shortage of quality seats. This package includes... Businesses Franchises Brokers Loading... 5-Unit Premium Education Platform — ~$14M Aggregate Revenue / ~$1.8M Los Angeles County, CA Asking Price:$50,000,000 Cash Flow (SDE):$3,800,000 EBITDA:$1,800,000 Gross Revenue:$14,000,000 Established:Not Disclosed 5-Unit Premium Education Platform — ~$14M Aggregate Revenue / ~$1.8M Business Description Platform-scale entry into the nation’s largest childcare market Five centers. One system. The largest childcare market in America. Los Angeles has enormous, durable demand for premium early education and a chronic shortage of quality seats. This package includes five centers under an established, recognized education brand — with the curriculum, training, and enrollment systems already proven at scale. The category economics are what draw experienced operators: tuition paid in advance, non-discretionary demand, high occupancy, and real pricing power. Identity and full diligence under NDA. Ad#:2532620 Business Location Location: Los Angeles County, CA Real Estate: Leased Financial Benchmarks for California Preschools Gross Revenue Benchmarks Cash Flow (SDE) Benchmarks EBITDA Benchmarks BizBuySell EDGE Demographic Information for Los Angeles County Area Household Income Population Age Population Trend Population by Race/Ethnicity BizBuySell EDGE Listing Statistics Saved This Listing Listing Last Updated Appeared in Search Listing Detail Views BizBuySell EDGE Know the True Market Value Before You Make an Offer Get valuation data to negotiate with confidence. Get a Valuation Report Business Listed By: Not Disclosed Phone Number 404-852-8617 Voice only (no SMS) Ad#:2532620 The information in this listing has been provided by the business seller or representative stated above. BizBuySell has no stake in the sale of this business, has not independently verified any of the information about the business, and assumes no responsibility for its accuracy or completeness. Read BizBuySell's Terms of Use before responding to any ad. Learn how to avoid scams. Contact Form Full Name* Enter a valid Full Name Phone Number Enter Phone Number Email Address* Enter Email Address Optional Message Yes, send me the Buyer Newsletter for popular businesses, tips, & email promotions. Show sellers you’re serious - learn about BizBuySell Edge for premium buyer tools & alerts Send Message By clicking the button, you agree to BizBuySell’s Terms of Use and Privacy Notice Phone Number 404-852-8617 Your request has been sent. What Happens Next? is reviewing your details. A representative will reach out soon to discuss your options. Expect a response in 1-2 business days. Report an issue with this listing Similar Listings Preschools for Sale All Businesses for Sale in Los Angeles County Highly Regarded Kids Soccer Program – Multiple Locations San Diego County, CA Asking: $225,000 After-School & Homeschool Enrichment Academy for Sale Mission Viejo, CA Asking: $180,000 Profitable Child Care Business + Real Estate Included. Contra Costa County, CA Asking: $3,520,000 Taste Buds Kitchen Franchise Opportunity In CA Cash Required: $150,000 Â©2026 CoStar Group Send Message Listing Shared via Email a6301374279843840.cdn.optimizely.com a6301374279843840.cdn.optimizely.com is blocked This page has been blocked by an extension Try disabling your extensions. ERR_BLOCKED_BY_CLIENT Reload This page has been blocked by an extension Buy a Business Search for a Business Established Businesses Asset Sales How to Buy a Business Buy a Franchise Search Franchises For Sale Low Cost Franchises Restaurant and Food Franchises Business Opportunities Retail Franchises Sell a Business Sell a Business on BizBuySell Sell Multiple Businesses How to Sell a Business Value a Business Find a Broker Tools & Advice Learning Center Finance Center Market Insights Financial Benchmarks Business for Sale Blog Business Brokers Find a Broker For Brokers My BizBuySell Dashboard My Business Selling My Listings Guide to Selling Add a New Listing Searching My Saved Listings My Saved Searches Franchise Recommendations BizBuySell Edge Edge Preferences Recommendations Industry Benchmarks Location Insights BizBuySell Edge Edge Preferences Recommendations Industry Benchmarks Location Insights Research Guide to Buying Reports Message Center My Mailbox My Inquiries Email Preferences Export Leads Account Account Settings My Billing Info BrokerWorks My BizBuySell Dashboard Leads Billing My Saved Listings My Saved Searches Account Sign Out Sign In reCAPTCHA Recaptcha requires verification. protected by reCAPTCHA

Why we like it

Earnings quality benefits from a subscription-like billing model: tuition is paid in advance, demand is non-discretionary for working parents, and occupancy tends to stay high because there is a documented shortage of quality seats in LA. That combination produces predictable, front-loaded cash collection with low bad-debt risk relative to most service businesses.
Durability is real in this category. Early childhood education is genuinely recession-resistant because parents keep working and keep needing care, and switching costs are emotional and logistical once a child is enrolled. A recognized brand plus standardized curriculum creates modest but real differentiation in a fragmented, mom-and-pop dominated market.
The market tailwind is structural. Los Angeles County is the largest childcare market in America, with dense high-income pockets that support premium tuition and chronic undersupply of licensed seats. This is a demand-outstrips-supply dynamic that supports both occupancy and pricing power over time.
The operator advantage is that this is already a five-unit system with proven training and enrollment infrastructure, not a single center. A hands-on operator who tightens staffing ratios, raises tuition to market, and adds capacity can compound within the existing footprint before ever buying a sixth location.

How to improve it

Reconcile and normalize the earnings immediately. There is a $2M gap between the $3.8M SDE and the $1.8M EBITDA, so rebuild both figures on a per-center basis to understand what is add-back, what is owner comp, and what real free cash flow looks like after market-rate management. This single exercise determines whether the deal is a 13x or a 28x.
Push tuition to true market rates. Premium LA preschools command significant pricing power in undersupplied submarkets, so audit each center's rate card against local comps and implement staggered increases at the next enrollment cycle. Even a 5 to 8 percent increase flows almost entirely to the bottom line given fixed labor.
Optimize teacher-to-child ratios and staffing costs within licensing limits. Labor is the dominant expense in childcare, so benchmark each center's ratios against state minimums and eliminate over-staffing while protecting quality and compliance. Standardized scheduling and float staff across five sites can cut premium overtime.
Attack waitlist conversion and occupancy. With chronic seat shortages, any center running below capacity is leaving cash on the table, so instrument enrollment funnels, reduce time-to-fill on open slots, and build a managed waitlist that can also justify future price increases.
Negotiate or extend the leases before close. All five locations are leased, which is the primary risk to a business built on physical seats, so lock in favorable renewal terms and options to prevent a landlord from capturing your enrollment goodwill at renewal.
Add ancillary revenue per family. Layer in higher-margin extras such as extended-hours care, enrichment programs, summer camps, and meal plans, which existing enrolled families will pay for and which require little incremental fixed cost.
Centralize back-office and marketing across the five units. Consolidate billing, HR, procurement, and lead generation into one shared function to strip duplicated overhead and create a genuine platform cost structure that would justify a premium exit multiple.

Diligence notes

Interrogate the SDE versus EBITDA gap first. A reported $3.8M SDE against $1.8M EBITDA implies roughly $2M in owner compensation and add-backs, so confirm exactly what those are and whether the business can actually run without that owner labor. If EBITDA is the true post-management number, the effective multiple is closer to 28x and the ask is aggressive.
Verify licensing and regulatory standing for all five centers. Childcare is heavily regulated in California, so pull each site's license status, capacity limits, inspection history, and any open violations, because a licensing issue at even one center directly caps revenue and can trigger closure.
Scrutinize the leases in detail. Since no real estate is included and the entire business depends on physical seats, review remaining term, renewal options, escalators, and personal guarantees on each of the five locations, and model the downside if any landlord declines to renew.
Confirm the brand relationship. The listing references an established, recognized education brand, so determine whether this is owned IP, a franchise, or a licensing arrangement, because franchise royalties, transfer approval rights, and territory restrictions materially change both the economics and the transferability of the deal.
Validate enrollment, occupancy, and tuition data by center. Request twelve to twenty-four months of enrollment counts, occupancy rates, tuition rolls, and prepaid tuition liabilities per site to confirm the revenue is stable and to expose any single center that is dragging or propping up the aggregate figures.
Assess staff retention and key-person risk. Quality childcare lives and dies on teacher retention and center director relationships with families, so review turnover, wage rates versus local market, and whether directors are likely to stay through and after the transition.

Source

Originally listed on BizBuySell. View original listing →