Six-Center Early Education Portfolio, 3-State Childcare Group

Full Editorial Writeup

This is a branded, multi-site early-education portfolio made up of six childcare centers spread across three states, anchored in suburban growth markets including Texas. The group generates roughly $20M in combined annual gross revenue and reports $1.844M in cash flow, serving approximately 1,800 children from infants through school-age against a licensed capacity of more than 3,000 seats. Every center sits on a triple net lease and is run by an independent Center Director, with no owner working in the business day to day.

The standout feature here is the gap between capacity and current enrollment. The portfolio is only about 60 percent utilized (1,800 of 3,000+ licensed seats), which means the single largest growth lever, filling existing classrooms, requires no new real estate, no new licenses, and minimal incremental fixed cost. In a childcare model where rent and core staffing are largely fixed, every additional enrolled child flows a disproportionate share of tuition straight to the bottom line.

The cash flow margin tells its own story. At $1.844M on $20M in revenue, the group is running around 9 percent cash flow margins, which is thin for a well-run multi-site childcare operator and signals either labor inefficiency, pricing below market, or the drag of underfilled centers. For a buyer, that is not a red flag so much as a map: the operational and enrollment upside is visible, the question is whether it is capturable.