What Influences the Value of a Daycare? Key Factors Every Owner Should Know

For many daycare owners, the value of their Kita is not something they think about on a daily basis. Looking after children, communicating with parents and managing a team leave little time for broader business considerations. However, when a handover or sale is on the horizon, one important question arises: What is my Kita actually worth?

Why daycare owners should consider the value of their Kita

There are many reasons why owners start thinking about the value of their Kita. Some are planning for retirement, while others want to pursue a new professional direction. Others may have received an enquiry from a potential buyer or are considering handing over their Kita to an employee.

In all these situations, having a realistic understanding of the Kita's value is helpful. It provides clarity when speaking with potential buyers, banks and advisors. Addressing the topic early gives you more time and allows you to make decisions without unnecessary pressure.

The key factors that determine the value of a Kita

There is no universal formula for calculating the value of a Kita. Its value depends on several factors that need to be considered together.

Occupancy and financial performance

A stable, well-occupied Kita with clear and transparent financial figures appears more reliable to potential buyers. It is not just the current occupancy rate that matters, but also how it has developed over several years. Well-maintained annual financial statements and a transparent cost structure make it much easier to assess the business.

Location and premises

Location, accessibility and the surrounding catchment area all play a role. The condition, size and suitability of the premises are equally important. Does the owner own the property, or is it rented? A long-term, secure rental agreement can be an important advantage for a potential successor.

Team and qualified childcare professionals

An experienced, well-established team of qualified childcare professionals is one of a Kita's most valuable assets. Potential buyers look at how long employees have been with the business, how the management team is structured and whether the operation depends heavily on the owner personally.

Contracts and agreements

Relevant documents include rental agreements, childcare contracts with parents, employment contracts and any agreements with municipalities or other organisations. The more organised and up to date these documents are, the easier it is to assess the Kita.

Licences and regulatory compliance

Operating a Kita in Switzerland requires the appropriate authorisation. Requirements and responsible authorities vary from canton to canton. A Kita that can demonstrate compliance with all applicable requirements builds confidence among potential buyers. You can find information about the relevant cantonal authorities on the Swiss Federal Social Insurance Office's information page on supplementary childcare.

Reputation and local presence

Satisfied parents, a long waiting list and a good reputation in the neighbourhood or local community can all have a positive impact on a Kita's value. Although these factors are difficult to quantify, they often send a strong signal to potential buyers.

Common misconceptions when valuing a Kita

When it comes to determining the value of a Kita, the same misunderstandings often arise:

• Emotional value versus market value. Years of dedication, commitment and hard work are incredibly valuable. However, buyers primarily focus on reliable financial figures and future prospects.

• Generic rules of thumb. Simple valuation formulas shared by acquaintances or used in other industries rarely reflect the specific characteristics of a Kita.

• Dependence on the owner. If the business relies heavily on one individual, this can reduce its attractiveness and value for potential successors.

• Incomplete documentation. Missing or outdated documents make any assessment more difficult.

• Starting too late. Those who only begin preparing when time is already running out have less room to make improvements.

How to get an initial idea of your Kita's value

A sensible first step is to gather your key figures and documents, including occupancy rates, annual financial statements, contracts, team structure and operating authorisation. This information provides a basis for an initial assessment.

An online tool can also help you gain a first overview. You can estimate your Kita's value online and receive an initial indication of what your daycare business may be worth.

Please note: This is an indicative estimate, not a formal valuation or an offer.

For binding advice on tax, legal or financial matters, it is recommended to consult qualified professionals. The Swiss SME Portal also provides general information on business valuations and business succession.

Frequently asked questions about the value of a Kita

How is the value of a Kita determined?

There is no single standard method. Financial performance, occupancy, location, team, contracts and operating authorisation are generally considered together. A formal Kita valuation should be carried out by qualified professionals.

Can I sell my Kita if it is not fully occupied?

Yes, this is generally possible. What matters is how clearly the current situation can be explained and what opportunities it offers to a potential successor. An honest and well-documented overview is helpful in any case.

When should I start thinking about the value of my Kita?

Ideally, well before a planned handover or sale. This gives you enough time to organise your documents, address potential weaknesses and prepare the business for a future transition.

Next steps

Would you like to know where your Kita currently stands? Get an initial indication of its value with our online Kita valuation tool.

Please note: This is an indicative estimate, not a formal valuation or an offer.