El Paso Owner's Guide · Daycare, Preschool & Childcare

How to Sell a Daycare or Childcare Center in El Paso, Texas

Childcare is one of the most consistently financeable businesses in the country: enrollment is recurring, demand outruns supply, and licensed capacity is a barrier no competitor can shortcut. What sinks these deals is almost never demand — it is documentation.

(915) 318-2226
2×–3.5×
Typical multiple of owner earnings for a licensed center
$5M
SBA 7(a) financing available to qualified buyers
100%
Confidential — staff and parents never know

The Local Market

What buyers pay for in an El Paso childcare center

El Paso has a young family population, Fort Bliss, a growing medical district, and waitlists at good centers across the city. Buyers understand the demand. What they underwrite is your licensed capacity, your enrollment history, and your compliance file.

Licensed capacity and how full you are

Enrollment as a percentage of licensed capacity is the first number a buyer looks at. Room to grow inside your existing license is upside they will pay a premium for.

Tuition collection and recurring enrollment

Autopay tuition, low delinquency, and stable month-to-month enrollment are contracted-feeling revenue. Waitlists are the strongest signal in this industry.

Directors and credentialed staff

A qualified director who stays after closing, credentialed teachers, and low turnover are what make a center transferable. Buyers pay for continuity of care.

A clean licensing and inspection record

State inspection history, staff-to-child ratios, and background-check documentation get examined closely. A clean file protects your price; citations invite renegotiation.

Free Estimator · No Email Required

What is my El Paso daycare worth?

Move the slider. This uses owner's discretionary earnings (SDE) — your net profit plus your salary, personal expenses run through the business, interest, depreciation, and one-time costs — the number buyers and SBA lenders actually price.

$180,000 / year

$40K$1.2M

Which of these are true today?

Illustrative Range

Estimated enterprise value

$396,000 – $639,000

That’s roughly 2.2× to 3.6× your owner’s earnings, before any real estate you own.

Every box you check is a lever you can still pull before you list. Owners who fix the books and the lease first routinely land at the top of their range instead of the bottom.

Illustration only — not an appraisal or an offer.

Step by Step

The six steps that get a daycare sold — in that order.

  1. 01

    Document earnings, enrollment, and capacity

    Three years of P&Ls and tax returns, reconciled, plus enrollment by month, tuition rates by age group, licensed capacity, and waitlist data. Buyers underwrite the enrollment curve.

  2. 02

    Commission an independent, certified valuation

    Not a broker's opinion. We commission a certified valuation from an independent NACVA-credentialed appraiser — the caliber of report banks, buyers, the IRS, and courts rely on. It sets a defensible price and survives diligence.

  3. 03

    Put a director in your chair

    A center that runs on a qualified director rather than the owner is a different asset entirely. Make that transition before you list, not during the sale.

  4. 04

    Fix what diligence will find

    Licensing status and transfer requirements, inspection and citation history, staff credentials and background checks, ratios, lease term and assignment, playground and facility compliance, and unpaid taxes.

  5. 05

    Market it confidentially — never publicly

    No word to your staff or your parents. Nothing rattles a childcare business faster than uncertainty. We market blind to vetted, financially qualified buyers under NDA and tour after hours.

  6. 06

    Negotiate, survive diligence, and close

    Offers, escrow, licensing sequencing for the new operator, lease assignment, staff retention, and funding. We stay on it through closing and the transition that keeps families enrolled.

Costly Mistakes

Six mistakes that cost daycare owners real money.

01

Being the director and the owner

If you are in the classroom every day and hold the parent relationships, buyers see a job. Hiring or promoting a qualified director is the highest-return project before a sale.

02

Letting enrollment drift before listing

Value follows the enrollment curve. Buyers price a declining trend hard, even when demand in the market is strong.

03

Collecting tuition informally

Cash tuition and inconsistent collection make revenue unverifiable. Autopay and clean records are worth real money.

04

Unresolved licensing citations

An open citation or a pattern of ratio findings gives a buyer both a reason to renegotiate and a reason to walk.

05

Telling parents early

Parents make decisions on stability. Word of a sale can move families out and take your enrollment with them.

06

Ignoring facility and lease issues

Playground compliance, square footage per child, and a short lease all cap what a buyer can do — and therefore what they will pay.

Questions Owners Ask

Daycare owners ask us these first.

Straight answers, no hedging. If yours isn’t here, call us and ask it directly.

Profitable licensed centers commonly trade between roughly 2 and 3.5 times owner's discretionary earnings, with full centers that hold waitlists and run on a director pricing at the top of that range. Real estate, if you own it, is valued separately. Only a certified independent valuation survives a lender's underwriting.

Licensing does not simply hand over with a sale. The buyer must satisfy state requirements in their own right, and that timeline has to be built into the closing schedule from the beginning. Handled early it is routine; discovered late it is a deal-killer.

Yes — qualified buyers can access SBA 7(a) financing up to $5 million, and lenders are comfortable with licensed childcare. It requires clean, reconciled financials and a defensible independent valuation. SBA pre-qualification is a preliminary, non-binding lender assessment, not a loan commitment.

Not from us. There is no sign and no address in any advertisement. Your center is marketed blind to vetted buyers who sign a non-disclosure agreement before they learn who you are, and tours happen outside operating hours.

You have two assets and three good options: sell both together, sell the business and lease the building to the buyer for ongoing income, or sell the business now and the real estate later. We model all three so you choose with numbers in front of you.

Possibly — but call us before you decide. Sometimes the right answer is a year of rebuilding enrollment; sometimes the market and your buyer pool argue for moving now. We will give you the honest read either way.

Where we work

Daycare owners we represent across El Paso, West Texas, and southern New Mexico

Whether your daycare sits on the east side, downtown, out in the valley, or across the state line in Doña Ana County, the sale process is the same: verified financials, an independent certified valuation, and a confidential, competitive market of qualified buyers. We meet owners at a time and place of their choosing.

  • El Paso
  • West El Paso & Upper Valley
  • East El Paso
  • Northeast El Paso
  • Central & Downtown
  • Horizon City
  • Socorro
  • San Elizario
  • Clint & Fabens
  • Canutillo
  • Anthony, TX & NM
  • Fort Bliss corridor
  • Las Cruces, NM
  • Sunland Park, NM
  • Doña Ana County
  • Alamogordo & Deming, NM
  • Van Horn & Fort Hancock
  • Midland & Odessa

Daycare Owners · Confidential

Find out what your center is actually worth.

One confidential conversation with a partner — not a coordinator. We will tell you where your numbers put you today, what would move the multiple, and whether now is your moment.

  • Confidential — nothing is shared or listed without your written consent.
  • A reply within one business day, usually the same afternoon.
  • No fee, no obligation, and no pressure for the first conversation.
What's this about?
How should we reach you?

Your information goes only to our team. We never list, market, or mention your business to anyone without your written permission.

Built on accuracy. Sold with certainty.

El Paso, Texas

(915) 318-2226

Monday – Friday · 9:00am – 5:00pm MT

Serving El Paso County, Doña Ana County, West Texas, and businesses across all of Texas.

“Plans fail for lack of counsel, but with many advisers they succeed.”

Proverbs 15:22

Valuation ranges and estimator results on this page are general market illustrations for education only. They are not an appraisal, an offer, or a prediction of any sale price. Every business is valued on its own verified financials by an independent NACVA-credentialed appraiser.

Covenant Business Brokers facilitates the confidential sale and acquisition of privately held businesses. Engaging our services does not guarantee the sale of any business or any particular price, timeline, or outcome. Every transaction depends on factors outside any broker’s control, including market conditions, financing availability, and buyer interest.

Valuations. Our complimentary Broker’s Opinion of Value is an informal estimate of likely market value prepared by a business broker for the purpose of evaluating a potential sale. It is not a certified appraisal and should not be relied upon for tax, legal, lending, litigation, or financial reporting purposes. Certified business valuations are prepared by independent NACVA-credentialed appraisers under a separate, client-paid engagement and are not included with every listing.

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