ChildcareLink

ChildcareLink We assist investors, operators and landlords in the buying, selling, leasing, and developing of childcare centres. Linking Care with Trust.

Book EBITDA β‰  Real EBITDATwo centres. Similar on paper.One sold for $8.2M. The other $5.4M.The difference came down to f...
14/05/2026

Book EBITDA β‰  Real EBITDA

Two centres. Similar on paper.
One sold for $8.2M. The other $5.4M.

The difference came down to fundamentals πŸ‘‡

β†’ Occupancy (85% is the line)
β†’ Lease length (15+ years matters)
β†’ Location demographics (not CBD)
β†’ NQF rating (buyer confidence)
β†’ Property type (purpose-built wins)

If you’re thinking about selling
or youβ€˜ve just bought in
these are the levers that move the price.

Save this post for when you’re ready.

Next up: EBITDA β€” why the number on your P&L
isnβ€˜t what buyers will pay you for.

Follow for more on buying, selling, and investing in Australian childcare.

⚠️ General information only. Not financial advice.

🏫 The 12–18 Months Before Selling Decide Your PriceMany owners think:πŸ‘‰ The sale starts when you listReality:πŸ‘‰ Good sales...
29/04/2026

🏫 The 12–18 Months Before Selling Decide Your Price
Many owners think:
πŸ‘‰ The sale starts when you list
Reality:
πŸ‘‰ Good sales = prepared 12–18 months ahead
πŸ‘‰ Bad sales = rushed in 2 weeks

🎯 Why start early?
Buyers are assessing 3 things:
πŸ‘‰ Cash flow
πŸ‘‰ Lease
πŸ‘‰ Regulatory compliance
❗Weakness in any one
πŸ‘‰ Price drops 10–20%

πŸ“Š 1. Fix the numbers first (most critical)
Most deals fail
πŸ‘‰ at the financial stage
Not because numbers are wrong
πŸ‘‰ but because they’re unclear

πŸ“Œ Must-have documents:
β€’ 3 years P&L
β€’ Enrolment & occupancy data
β€’ Balance sheet
β€’ CCS reconciliation

πŸ’£ Key metric: Adjusted EBITDA
πŸ‘‰ Reported vs buyer-accepted
πŸ‘‰ Typically 20–40% gap
βœ”οΈ Owner wages
βœ”οΈ Related-party rent
βœ”οΈ One-off expenses
βœ”οΈ Personal costs
πŸ‘‰ All must be evidenced

πŸ“ˆ 2. Improve operating metrics
Occupancy
πŸ‘‰ 70% vs 85%
πŸ‘‰ Means a full valuation tier difference

NQF Rating
β€’ Working Towards = discount
β€’ Meeting = baseline
β€’ Exceeding = premium

Staff
πŸ‘‰ The #1 focus in 2026
βœ”οΈ Stable team
βœ”οΈ Low agency reliance
βœ”οΈ Ratio compliant
❗Staff issues = 15–20% price reduction

πŸ“œ 3. Lease = the business
(especially for leasehold deals)
Focus on:
β€’ Remaining term (10+ years)
β€’ Market rent level
β€’ Assignment terms
β€’ Make-good liability
πŸ“Œ Goal:
πŸ‘‰ Buyer’s lawyer finds no red flags

⚠️ 4. 6 common mistakes
❌ Personal expenses still in accounts
❌ Falling occupancy before listing
❌ Ignoring weak rating
❌ Short lease not fixed
❌ Breaking confidentiality
❌ Using non-specialist brokers

🎯 Final takeaway
Selling a childcare centre isn’t a transaction
πŸ‘‰ It’s a 12–18 month project

βœ”οΈ Prepare well β†’ sell at the top
❌ Skip steps β†’ market discounts you

⚠️ This content is for general information only and not investment advice
πŸ“Œ Follow for more insights



🏫 Regional Childcare in AustraliaHigher Yields (+100bps) β€” Worth It?πŸ“Š A fact many investors overlook:πŸ‘‰ 35% of Australian...
19/04/2026

🏫 Regional Childcare in Australia

Higher Yields (+100bps) β€” Worth It?

πŸ“Š A fact many investors overlook:

πŸ‘‰ 35% of Australians live in a β€œchildcare desert”
πŸ‘‰ ~3 children competing for 1 place

πŸ“Œ Most of these areas are regional

πŸ“ˆ Why investors are looking at regional now

πŸ‘‰ Higher yields

β€’ Metro: 4.25% – 5.25%
β€’ Regional: 5.25% – 6.25%

πŸ‘‰ +100–200bps premium

🎯 Why the premium exists
1️⃣ Policy tailwinds

πŸ‘‰ $1B Building Early Education Fund
πŸ‘‰ 2026 β€œThree Day Guarantee”

πŸ“Œ Both increase demand

2️⃣ Structural undersupply

πŸ‘‰ Some regions:
β€’ Little supply growth over 10 years
β€’ Rising 0–5 population

⚠️ But regional β‰  β€œdiscount Sydney”

4 real challengesπŸ‘‡

1️⃣ πŸ‘©β€πŸ« Staffing constraints

πŸ‘‰ Smaller talent pool
πŸ‘‰ Often not solvable with higher wages

2️⃣ πŸ“Š Slower occupancy ramp

πŸ‘‰ Typically 24–36 months
πŸ‘‰ Not 12 months

3️⃣ πŸ“‰ Higher supply impact

πŸ‘‰ One new centre
πŸ‘‰ Can reshape the entire market

4️⃣ πŸ’Έ Exit liquidity risk

πŸ‘‰ Smaller buyer pool
πŸ‘‰ Longer sales cycle

🎯 When does it make sense?

Only if ALL 3 apply:

πŸ‘‰ Genuine undersupply
πŸ‘‰ Strong operator
πŸ‘‰ Pricing reflects risk

πŸ’‘ Core insight

❗Regional isn’t an β€œopportunity” by default

πŸ‘‰ It’s a more complex asset class

🧠 Final takeaway

πŸ‘‰ Treat it as β€œdiscount Sydney”
❌ You’ll likely lose

πŸ‘‰ Treat it as its own asset class
βœ… You may outperform

πŸ“Œ Follow for more insights



🏫 Childcare Yields at 4.25%–5.25% in Australia | Is It Still Worth Buying?πŸ“Š Over the past two years, one clear trend:πŸ‘‰ C...
19/04/2026

🏫 Childcare Yields at 4.25%–5.25% in Australia | Is It Still Worth Buying?

πŸ“Š Over the past two years, one clear trend:

πŸ‘‰ Childcare property
has gone from a niche asset
➑️ to one of the tightest-yield sectors

πŸ“ Current market

πŸ™οΈ Major city transactions:
πŸ‘‰ 4.25% – 5.25%

❗Lower than many retail and office assets

πŸ‘‰ Which means: prices are higher

🎯 Why is it so β€œexpensive”?
1️⃣ 🧸 Essential service

πŸ‘‰ Not driven by consumer spending
πŸ‘‰ Supported by government subsidies (CCS)

2️⃣ πŸ“œ Long leases

πŸ‘‰ 15–20 years + rental increases
πŸ‘‰ Mostly triple-net

πŸ“Œ Landlords are almost β€œpassive income only”

3️⃣ πŸ“ˆ Policy support

πŸ‘‰ 2026 β€œThree Day Guarantee”
πŸ‘‰ Demand continues to grow

πŸ’£ What really determines value

❗Not the rent

πŸ‘‰ It’s the lease

Same $350K annual rent

πŸ‘‰ Value can differ by 20%+

πŸ“Œ Focus on these key factors:

β€’ Remaining lease term (WALE)
β€’ Rent growth (CPI vs fixed)
β€’ Whether it’s triple-net
β€’ Whether there is a personal guarantee

⚠️ 3 risks you must understand
1️⃣ Tenant risk (most important)

πŸ‘‰ Poor operations = unstable rent

2️⃣ Financing risk

πŸ‘‰ Yield 4.7% vs interest rate 6.5%
πŸ‘‰ Possible negative cash flow

3️⃣ Supply & demand risk

πŸ‘‰ New centres within 3km = direct impact

🎯 Conclusion

❗Childcare property

πŸ‘‰ Not high risk
πŸ‘‰ But not a β€œbuy blindly” asset

πŸ‘‰ At its core:
πŸ“Œ A long-term stable income asset

πŸ“Œ Suitable for:

βœ”οΈ Long-term holding (10+ years)
βœ”οΈ Cash flow-focused investors
βœ”οΈ Those who understand lease structures

⚠️ This content is for general information only and does not constitute investment advice

πŸ“Œ Follow for more insights


🏫 3 Hidden Traps in Childcare P&L (Before You Buy)❗The biggest risk isn’t priceπŸ‘‰ It’s the financialsπŸ“Š What we see in eve...
17/04/2026

🏫 3 Hidden Traps in Childcare P&L (Before You Buy)

❗The biggest risk isn’t price

πŸ‘‰ It’s the financials

πŸ“Š What we see in every deal:

πŸ‘‰ Reported profit vs real profit
πŸ‘‰ 20% – 40% difference

❗Not always intentional
πŸ‘‰ Small business P&L often includes
πŸ‘‰ personal adjustments

⚠️ Trap 1: Owner Wages

πŸ‘€ Owner acts as Director / Supervisor

πŸ‘‰ No salary recorded
πŸ‘‰ Or underpaid

πŸ“‰ Result:
πŸ‘‰ Profit is overstated

πŸ“Œ Fix:
πŸ‘‰ Add back market salary

⚠️ Trap 2: Related-Party Rent

🏒 Landlord = owner / family entity

πŸ‘‰ Rent may be:
β€’ Below market
β€’ Above market

πŸ“‰ Impact:
πŸ‘‰ Valuation distortion

πŸ“Œ Fix:
πŸ‘‰ Normalise to market rent

⚠️ Trap 3: Personal Expenses

πŸš— Cars / πŸ“± Phones / πŸ‘¨β€πŸ‘©β€πŸ‘§ Family wages

πŸ‘‰ Common in small businesses

πŸ“Œ Fix:
πŸ‘‰ Adjust to get
πŸ‘‰ True EBITDA

πŸ’£ What Many Buyers Miss

❗Revenue β‰  Occupancy

πŸ‘‰ High fees don’t mean high utilisation

Possible reasons:
β€’ Discounting
β€’ Backdated payments

πŸ“Œ Always check:
πŸ‘‰ Weekly enrolment census

🎯 Key Insight

πŸ‘‰ P&L = the story
πŸ‘‰ Balance sheet = the history
πŸ‘‰ Cash flow = the truth

❗Review all three

πŸ“Œ Follow
for more childcare investment insights πŸ’‘



🏫 Afraid of Parent Complaints? You’re Focusing on the Wrong ThingπŸ“Œ Many operators think:πŸ‘‰ Complaints = problems❗Reality:...
17/04/2026

🏫 Afraid of Parent Complaints? You’re Focusing on the Wrong Thing

πŸ“Œ Many operators think:
πŸ‘‰ Complaints = problems

❗Reality:
πŸ‘‰ Poor handling = real risk

In Australian childcare,
complaints are normal

πŸ‘‰ What matters is HOW you respond

❗ Most Common Mistake

Operators try to:
β€’ Explain policies
β€’ Justify actions
β€’ Defend compliance

❌ But parents don’t want explanations
πŸ‘‰ They want to feel heard

🎯 Classify Before You Act

There are 3 types of complaintsπŸ‘‡

🟑 Operational

πŸ‘‰ Nappies, meals, lost items

βœ”οΈ Fix systems

πŸ”΅ Relationship

πŸ‘‰ Staff attitude, communication

βœ”οΈ Focus on trust, not logic

πŸ”΄ Compliance (Critical)

πŸ‘‰ Injuries, medication errors, safety

⚠️ Legal issue, not customer service

πŸ‘‰ Must report under National Law

⚠️ Biggest Risk

❗Treating compliance issues as communication issues

πŸ‘‰ Trying to β€œresolve quietly”

πŸ“‰ Result:
β€’ NQF rating drops
β€’ Risk of losing approval

⏰ First 30 Minutes Matter

Follow this order:

1️⃣ Listen fully
2️⃣ Acknowledge emotions
3️⃣ Only promise what you control

πŸ‘‰ Goal:
Not satisfaction
πŸ‘‰ But trust

πŸ“’ Keep a Complaint Register

❗No records = bigger red flag

πŸ“Š Always log:
β€’ Date
β€’ Type
β€’ Details
β€’ Action taken
β€’ Outcome

πŸ’‘ Key Insight

πŸ‘‰ Well-handled complaints = higher retention

πŸ‘‰ Often lead to referrals

🎯 Final Thought

❗Complaints aren’t the problem

πŸ‘‰ Poor handling is

πŸ“Œ Follow
for more childcare business insights πŸ’‘



🏫 Childcare Financing in Australia (2026 Data)πŸ’° Thinking of buying a childcare centre?πŸ‘‰ Read this first⚠️ Many buyers as...
14/04/2026

🏫 Childcare Financing in Australia (2026 Data)

πŸ’° Thinking of buying a childcare centre?
πŸ‘‰ Read this first

⚠️ Many buyers assume
πŸ‘‰ Commercial loans = home loans

❗Reality:
πŸ‘‰ Childcare = specialised asset class
πŸ‘‰ Bank requirements are very different

πŸ“Š Loan-to-Value Ratio (LVR)

β€’ Freehold ➜ up to 70%
β€’ Leasehold ➜ up to 60%
β€’ Major banks typically: 40–50% (Leasehold)

πŸ’Έ Interest Rates

β€’ Big 4 banks ➜ 6.15% – 8.50%
β€’ Non-bank lenders ➜ 5% – 12%
β€’ SMSF loans ➜ from 6.20%
β€’ RBA cash rate ➜ 4.10%

πŸ“‹ Bank Requirements

βœ… 25+ licensed places
βœ… 80%+ occupancy
βœ… Interest Coverage Ratio β‰₯ 2x
βœ… Minimum NQF: Meeting
βœ… 3 years financials + BAS + CCS

🧠 Common Financing Structures

1️⃣ Commercial mortgage (Freehold)
2️⃣ Business loan (Leasehold)
3️⃣ SMSF LRBA
4️⃣ Vendor finance / Earnout (5–30%)

⚠️ Key Insight

❗Biggest mistake:
πŸ‘‰ Stacking multiple funding layers

πŸ“‰ Result:
πŸ‘‰ Higher cost + higher risk

πŸ‘‰ Cleaner structure = stronger long-term position

πŸ’£ Critical Point

❗Banks lend on valuation
πŸ‘‰ NOT your purchase price

πŸ“‰ Leasehold often valued
πŸ‘‰ 10–15% below contract price

😱 Meaning:
πŸ‘‰ Your deposit jumps from 40% β†’ 55%

🎯 Before You Buy

β€’ Get indicative terms early
β€’ Model cash flow (after tax + debt)
β€’ Stress test rates +1.5–2%
β€’ Build your team (broker + accountant + lawyer)

⚠️ Disclaimer:
This content is for general information only and does not constitute financial, legal, or investment advice.

πŸ“Œ Follow
for more childcare investment insights πŸ’‘



🏫 First-Time Buying a Childcare Centre in Australia? Read This First❗Don’t start with listingsπŸ‘‰ Start with these 6 funda...
13/04/2026

🏫 First-Time Buying a Childcare Centre in Australia? Read This First

❗Don’t start with listings

πŸ‘‰ Start with these 6 fundamentals

⚠️ Many first-time investors jump straight into deals

πŸ‘‰ Looking at listings and prices

❗But success isn’t about price

πŸ‘‰ It’s about what you understand before buying

1️⃣ 🏒 What Are You Buying?

πŸ‘‰ Leasehold
= Business only (no property)
πŸ’° $500K – $3M

πŸ‘‰ Freehold Going Concern
= Business + property
πŸ’° $3M – $16M+

❗Different risk, financing, and exit strategy

2️⃣ πŸ’° Don’t Trust Reported Profit

πŸ“Š Centres are valued at:
πŸ‘‰ EBITDA Γ— 3–5

❗But seller EBITDA is often
πŸ‘‰ not normalised

Adjust for:
β€’ Owner wages
β€’ Above-market rent
β€’ One-off expenses

πŸ“‰ Difference:
πŸ‘‰ 20% – 40%

3️⃣ 🏦 Financing Is Tougher Than You Think

πŸ‘‰ Leasehold:
β€’ 50%–60% LVR
β€’ 40%–50% deposit

πŸ‘‰ Freehold:
β€’ 65%–70% LVR
β€’ 30%–35% deposit

πŸ“Š Banks look for:
β€’ 25+ places
β€’ 80%+ occupancy
β€’ 2x interest coverage

4️⃣ βš™οΈ Regulatory Approvals Take Time

πŸ“Œ Key approvals:

β€’ Provider Approval: 60–90 days
β€’ Service Approval Transfer: 42 days notice
β€’ CCS approval
β€’ WWCC
β€’ 2026 national educator registration

❗Delays here = delayed settlement

5️⃣ πŸ“Š Occupancy β‰  Attendance

❗Don’t rely on enrolment

πŸ‘‰ What matters is:
πŸ‘‰ Attendance

πŸ“Š Example:
β€’ 90% enrolment
β€’ 70% attendance

πŸ‘‰ CCS revenue depends on attendance

6️⃣ 🧠 Build the Right Team

You need:

β€’ Childcare specialist lawyer
β€’ Independent accountant
β€’ Finance broker
β€’ Industry broker

❗Avoid general business lawyers

πŸ‘‰ Childcare deals involve complex compliance

🎯 Final Takeaway

❗Buying childcare is not simple

πŸ‘‰ It’s a structured investment

Success depends on:
β€’ Timing
β€’ Data
β€’ The right team

πŸ“– Learn more:
πŸ‘‰ childcarelink.com.au

⚠️ Disclaimer:
This content is for general information only and does not constitute financial, legal, or investment advice.

πŸ“Œ Follow
for more childcare investment insights πŸ’‘



🏫 What Is a β€œFair Rent” for Childcare in Australia?πŸ“Š Here’s the data❓ How is childcare rent calculated?πŸ‘‰ Not per sqm lik...
13/04/2026

🏫 What Is a β€œFair Rent” for Childcare in Australia?

πŸ“Š Here’s the data

❓ How is childcare rent calculated?

πŸ‘‰ Not per sqm like retail
πŸ‘‰ But per licensed place

πŸ“Š National Benchmarks

πŸ’° Rent per place:
πŸ‘‰ $1,500 – $10,000+

πŸ“Œ National average:
πŸ‘‰ $3,500 – $4,000

πŸ™οΈ Sydney metro:
πŸ‘‰ $4,000 – $6,000

🏒 Melbourne / VIC:
πŸ‘‰ $2,500 – $4,000

πŸ“ High-demand regions:
πŸ‘‰ $3,000 – $3,500

πŸ’Ž Prime Sydney:
πŸ‘‰ $6,000+

🎯 What’s β€œFair”?

πŸ“Š Key metrics:

πŸ‘‰ Rent = 8% – 12% of revenue

πŸ‘‰ Rent + outgoings
πŸ‘‰ ≀ 22% of revenue

❗Above this = margin risk

⚠️ Common Mistake

❗Using full occupancy assumptions

πŸ‘‰ At 75% occupancy
πŸ‘‰ Cash flow tightens quickly

πŸ“Œ Always run stress tests

🏒 For Landlords

❗Overpricing = long-term loss

πŸ‘‰ Operator fails
πŸ‘‰ 3–6 months vacancy

πŸ’Έ You lose more

🎯 Key Takeaway

πŸ‘‰ A fair rent works for both sides

πŸ“Š Benchmarks:
β€’ $3,500 – $4,000 nationally
β€’ $4,000 – $6,000 in Sydney

πŸ‘‰ Then validate with
8% – 12% rent ratio

πŸ“– Learn more:
πŸ‘‰ childcarelink.com.au

⚠️ Disclaimer:
This content is for general information only and does not constitute financial, legal, or investment advice.

πŸ“Œ Follow
for more childcare investment insights πŸ’‘



🏫 The Day Your Childcare Centre Gets RatedYou think they’re checking cleanliness…❗They’re actually judging THESE 3 thing...
12/04/2026

🏫 The Day Your Childcare Centre Gets Rated

You think they’re checking cleanliness…
❗They’re actually judging THESE 3 things

⚠️ What’s the most stressful day for a childcare operator?

Not when children cry
Not when staff resign

πŸ‘‰ It’s the day an Authorised Officer knocks on your door πŸšͺ

πŸ“Œ This rating stays with you for years

It directly impacts:
β€’ πŸ‘¨β€πŸ‘©β€πŸ‘§ Parent choice
β€’ 🏦 Bank lending
β€’ πŸ’Ό Buyer interest

❗But most owners prepare for the wrong things

🧭 Who actually does the assessment?

Many call it an ACECQA rating

πŸ‘‰ But in reality:
πŸ‘©β€πŸ’Ό The visit is done by state regulators
(e.g. NSW Department of Education)

πŸ“Œ ACECQA publishes the result
πŸ‘‰ The assessment is done by state authorities

πŸ” What they’re REALLY looking at
1️⃣ πŸ‘€ Live Observations (Most Important)

❗Not how clean your floors are

πŸ‘‰ They observe:
β€’ Educator-child interactions
β€’ Engagement and guidance

πŸ“Œ Key insight:
πŸ‘‰ A clean but quiet room
❌ scores lower than an interactive, engaging one

2️⃣ πŸ—£οΈ Staff Conversations

They will speak to:
β€’ Director
β€’ Educational leader
β€’ Educators

❗If answers don’t align

πŸ‘‰ Governance = marked down

3️⃣ πŸ“„ Documentation (Biggest risk area)

❗Golden rule:
πŸ‘‰ If it’s not documented, it didn’t happen

πŸ“Œ Even great practices
πŸ‘‰ Don’t count without evidence

⚠️ What we see in the market

Two centres, same quality:

β€’ One gets ⭐ Exceeding
β€’ One gets ⚠️ Working Towards

❗Difference?
πŸ‘‰ Documentation

πŸ“Œ Common issues:

β€’ Outdated QIP
β€’ Undated reflections
β€’ Missing staff signatures

πŸ‘‰ Done, but not recorded = doesn’t exist

πŸ’Ό It’s not just compliance

πŸ“Š In real transactions:

πŸ‘‰ Exceeding centres
βœ”οΈ Attract more buyers
βœ”οΈ Receive stronger bank valuations

πŸ“Œ Rating = a commercial asset

❗Not just a compliance badge

⏳ What to prepare (6 weeks before)

βœ… Keep QIP β€œlive” with dated updates
βœ… Audit enrolment files, staff qualifications, WWCC
βœ… Ensure staff can answer confidently (not scripted)
βœ… Check ratios are always compliant
βœ… Prepare written records of complaints & actions

🎯 Final Thought

❗Assessment is not a performance
πŸ‘‰ It’s a demonstration

πŸ‘‰ It’s not enough to do well
πŸ‘‰ You must prove you do it

πŸ“– Learn more:
πŸ‘‰ childcarelink.com.au

⚠️ Disclaimer:
This content is for general information only and does not constitute financial, legal, or investment advice.

πŸ“Œ Follow
for more childcare investment insights πŸ’‘




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