- A preliminary sale estimate fits established preschool owners considering a sale. Salt Creek is the best starting point if you want direct principal advice about what buyers may pay, but its estimate is not an independent appraisal.
- A childcare broker’s pricing opinion can help you set an asking price for a smaller, owner-operated center.
- An independent, credentialed appraisal fits a tax, estate, partnership, or lender requirement when the intended recipient needs a formal report. Confirm the required scope before ordering one.
- This guide helps you choose a deliverable. For separate questions, see our childcare multiples guide, ECE advisor comparison, or guide to evaluating an offer.
Why the right valuation depends on why you need it
Choose a valuation based on the decision you need to make and who needs to rely on the answer. If you are preparing to sell, a preliminary sale estimate can help you assess what buyers may pay. If you run a smaller, owner-operated single center, a broker’s pricing opinion may be enough to help set an asking price. Neither serves the same purpose as an independent appraisal prepared for a lender, tax filing, court, or partnership matter.
Center size affects which providers fit. A multi-site group may qualify for an M&A advisor’s sale estimate, while a smaller single site may fall below that advisor’s minimum. Before ordering any report, ask its intended user what they require and confirm whether the valuation covers the operating business, the real estate, or both. A polished sale estimate does not become an independent appraisal because it contains detailed financial work.
The three types of childcare valuations and who needs each
Choose a valuation based on who will use it and what decision they need to make. A sale estimate helps you judge buyer interest. A broker opinion helps set an asking price for a smaller center. A formal appraisal addresses a specified reporting, financing, or ownership need.
| Your situation | Deliverable to consider | What it answers |
|---|---|---|
| You own an established single-site preschool or a multi-site group and are considering a sale. | Preliminary M&A sale estimate | What buyers may pay for the operating business, based on its financial results, operations, and likely buyer interest. The estimate supports sale planning, but it is not an independent appraisal. |
| You operate one smaller center and need a starting asking price. | Broker opinion of value | What the broker thinks the center could sell for. Ask whether the opinion covers the business alone or also considers any property you own. |
| You need a value for a tax filing, estate plan, gift, partnership matter, or lender. | Independent credentialed appraisal, if the intended user requires one | A written conclusion prepared to meet the stated purpose and scope. Confirm which ownership interest and assets the appraiser must value before ordering the report. |
About a dozen quick questions and two minutes get you a ballpark range for your business, built from published industry transaction multiple ranges, with the math behind it. It is a directional estimate, not a formal valuation.
Value My BusinessA tax or financing purpose does not automatically require the same report in every case. The IRS instructions for Form 709 generally allow adequate gift disclosure through either a qualified appraisal or a detailed description of how fair market value was determined. The Form 706 instructions address estate valuation and reporting, but do not impose a universal certified-business-appraisal rule. Ask your tax adviser what your gift or estate filing needs, and ask your lender what a financed purchase requires. For a partnership matter, check the agreement and the intended use of the valuation.
Salt Creek Advisory
Best for Owners of established preschools who are weighing a sale and want to understand what buyers may pay. Salt Creek Advisory is the best overall fit in this comparison for sale-focused owners seeking direct advice from the firm’s founders. Its typical client has $2 million to $75 million in revenue and at least $500,000 in adjusted EBITDA, or operating earnings adjusted for owner-specific and one-time expenses.
What it is Salt Creek provides a preliminary sale-market estimate informed by the business’s finances and operations. Owners who want detail on valuation methods can read its childcare multiples guide.
Pros You work directly with Jack and Connor Pitts. If you decide to pursue a sale, they can help prepare the business and approach qualified buyers rather than relying on one estimate or offer.
Cons Salt Creek’s estimate is not an independent credentialed appraisal for a tax filing, partnership dispute, or lender that requires a formal report. The treatment of owned real estate in the estimate is undisclosed, so confirm its scope before relying on it.
Pricing Salt Creek offers a free preliminary valuation tool. Standard M&A advisory engagements have no upfront retainer, and Salt Creek receives a success fee if a transaction closes. The specific fee depends on the engagement.
HINGE Early Education Advisors
Best for. HINGE Early Education Advisors fits owners of larger single schools or small groups who want a sale-oriented estimate. Its valuation request excludes schools with less than $1.7 million in annual revenue, franchisees, and nonprofits.
What it is. HINGE offers a custom estimate based on EBITDA, or earnings before interest, taxes, depreciation, and amortization, multiplied by a valuation multiple. HINGE says it sets its estimates in relation to its buyer base, so the estimate serves a potential sale rather than a formal appraisal requirement.
Pros. HINGE focuses on early education and offers a four-question calculator for an initial estimate before you request a custom valuation.
Cons. HINGE does not claim that its estimate is an independent credentialed appraisal. If a lender, tax adviser, or partner requires one, confirm the required report before ordering a valuation. HINGE handles real estate through a separate service line, so ask how it will assess property you own alongside the school.
Pricing. HINGE calls its custom valuation complimentary. Fees for other services are undisclosed.
Childcare Brokers
Best for. Childcare Brokers may suit you if you own a single, owner-operated center and want help setting a sale price before listing. Its website offers childcare business valuations and states no minimum revenue requirement.
What it is. The valuation helps an owner estimate a likely selling price. Treat it as a broker’s market-pricing opinion for sale planning, not an independent credentialed appraisal for a lender, tax matter, or ownership dispute.
Pros. Childcare Brokers focuses on childcare centers and says it works with clients nationally. Its stated hourly consulting model gives you a different way to pay for advice than a sale-contingent commission.
Cons. The website does not specify the valuation deliverable or explain how it treats owned real estate. Ask what you will receive and whether any property value will be assessed separately.
Pricing. Childcare Brokers discloses an hourly consulting fee but does not publish the hourly rate or a separate valuation price.
BizWorth
Best for. BizWorth is a strong fit if you need a written childcare business valuation for a lender, court, IRS submission, or partner dispute. Before ordering, tell BizWorth who will use the report and confirm that the proposed report meets that party’s requirements.
What it is. BizWorth offers daycare and preschool business valuations in five report tiers. Essentials and Standard target business purchases and sales. PreQualified addresses conditional lender approval, Certified covers uses including litigation and IRS submissions, and SBA Compliant targets SBA financing. BizWorth says its in-house appraisers hold NACVA credentials, but you should confirm who will prepare and sign your report.
Pros. You can choose a written deliverable based on its intended use rather than relying on a sale estimate. Cons. BizWorth lists commercial real estate appraisal as a separate service. If you own the center’s property, ask whether the quoted work values the operating business and real estate separately. Pricing. Exact fees are undisclosed.
Simply Business Valuation
- Best for Owners who need a written valuation with a published flat fee and a stated turnaround, subject to approval by whoever will rely on the report.
- What it is Simply Business Valuation publishes a childcare valuation article that discusses income, market, and asset approaches. The article references USPAP and NACVA standards and notes that a center’s real estate may need a separate appraisal.
- Pros The company’s published offer includes a report of more than 50 pages in PDF and editable Word formats, signed by certified appraisers. The company says it typically delivers the report in seven business days.
- Cons The childcare article gives no client-size range. It identifies its author as a “Certified Business Appraiser” but does not name a specific appraisal credential. Confirm the assigned appraiser’s credentials, the report’s intended use, and whether the fee covers any real estate before ordering.
- Pricing The published fee is $399 for the standard report.
Comparing the five options
Salt Creek Advisory is the best starting point here if you are preparing to sell an established center. If a lender, tax adviser, or partner needs a formal report, choose an appraisal with that intended use in writing.
| Provider | Deliverable type | Best-fit owner | Size eligibility | Fee disclosure | Real-estate treatment |
|---|---|---|---|---|---|
| Salt Creek Advisory | Preliminary sale estimate | Established owner weighing a sale | Typically $2 million–$75 million revenue and $500,000 or more adjusted EBITDA | Free preliminary estimate. Standard M&A engagements have no upfront retainer and charge a success fee | Undisclosed |
| HINGE Early Education Advisors | Sale-oriented estimate | Eligible school owner considering a sale | At least $1.7 million revenue. Excludes franchisees and nonprofits | Complimentary estimate. Other fees undisclosed | Separate service |
| Childcare Brokers | Broker pricing opinion | Owner-operated center setting an asking price | Undisclosed | Hourly consulting fee. Rate undisclosed | Undisclosed |
| BizWorth | Written valuation or appraisal report | Owner with a lender, tax, or partnership reporting need | Depends on report tier | Amount undisclosed | Commercial property appraisal listed separately |
| Simply Business Valuation | Written appraisal report | Owner seeking a published flat fee | Childcare-specific limit undisclosed | Reports start at $399 | Report scope undisclosed |
Before ordering a formal report, ask its intended recipient what type of valuation they will accept.
Questions owners ask before ordering a valuation
Does an SBA-financed sale always require an independent business appraisal? Do not order one solely because a buyer plans to use SBA financing. Ask the buyer’s lender what valuation it requires under the current SBA lending procedures, who may prepare it, and whether the lender needs a separate property appraisal.
Does a gift or estate transfer always require a qualified appraisal? No universal rule covers every transfer. The IRS instructions for Form 709 generally allow adequate gift disclosure through either a qualified appraisal or a detailed explanation of how you determined fair market value. Estate return instructions address the valuation of business interests and real estate but do not impose a qualified business appraisal in every case. Ask your tax adviser what documentation your transfer requires.
Will a business valuation include the preschool building? Ask the provider to identify which assets the assignment covers. If you own the property separately, the operating business and building may need separate value conclusions. If your business leases the building from you or a related entity, ask what rent the valuation assumes.
Is choosing a valuation provider the same as choosing a sale advisor? No. A valuation answers a defined question about value, while an M&A advisor helps you prepare for and manage a sale. If you are comparing firms to run that process, see our early childhood education advisor comparison.
Choosing the right starting point
Choose the valuation that fits the decision in front of you. If you are actively considering a sale, start with a sale-market estimate to understand what buyers may pay. You may not need a formal appraisal yet. If a lender, tax adviser, or partnership agreement requires one, confirm the report and credentials needed before ordering it.
If you already have an offer, our offer evaluation guide can help you assess its price and terms. To explore a sale, request Salt Creek’s free, confidential preliminary valuation.
Sources
- Salt Creek Advisory, official website.
- HINGE Early Education Advisors, Childcare Business Valuation Services.
- Childcare Brokers, official website.
- BizWorth, Daycare and Preschool Business Valuation.
- Simply Business Valuation, official website.
- Internal Revenue Service, Instructions for Form 709, 2025.
- Internal Revenue Service, Instructions for Form 706, revised July 2026.