Selling childcare before 2029: impact of the DAEB scheme
The potential introduction of the SGEI scheme will significantly impact businesses looking to sell their childcare services. The government may designate the sector as a Service of General Economic Interest (SGEI) starting in 2029. This would make childcare partially public, allowing the government to finance the sector without conflicting with European regulations.
For entrepreneurs, this means more government influence, stricter regulations, and possible restrictions on profits and financing. These changes have a direct impact on the value of childcare organizations. They influence how attractive your company for sale is for investors and how sales strategies, growth plans and returns will develop in the coming years.
How is the mergers and acquisitions market in childcare changing?
The childcare mergers and acquisitions market has changed from a growth-oriented to a cautious and wait-and-see market, where strategic reconsideration prevails.
The childcare sector has been known for years as a growth market. Many entrepreneurs are expanding through mergers and acquisitions, often supported by investment funds. However, since the announcement of the possible DAEB scheme, that picture has changed significantly.
Three major shifts are visible:
1. From growth to reconsideration
While entrepreneurs previously focused on expansion and scaling up, many organizations are now pausing. They are evaluating their portfolios, reassessing valuation models, and postponing investment decisions until there is more clarity on policy and returns.
2. Caution among buyers and investors
Due to the lack of clarity about the conditions of DAEB status, buyers are adopting a wait-and-see attitude. This leads to longer negotiation processes, lower bids, and more frequent use of earn-out structures whereby part of the purchase price becomes dependent on future developments.
3. Fewer transactions and lower valuations
The market is pricing in uncertainty: while childcare organizations previously achieved high multiples, valuations are now under pressure. This makes it more difficult to find buyers willing to pay a fair price, especially for entrepreneurs who want to sell their businesses.
What does DAEB status mean for the value of childcare organizations?
The potential introduction of DAEB status will directly impact the value of childcare organizations. Once childcare is considered a public service, the focus shifts from returns to social accessibility. This makes buyers and investors more cautious and lowers valuations.
Because it's still unclear which rules will apply to profit distribution and returns, buyers are pricing in additional risk. This leads to lower bids, longer negotiations, and increased use of earn-out structures.
If the DAEB status is actually implemented, the room for profit will further diminish. This could cause valuations to decline structurally, making it more difficult to sell a Dutch childcare organization on favorable terms.
Why can waiting pose risks for childcare entrepreneurs?
For entrepreneurs who want to sell their childcare facilities, waiting for clarity on the DAEB scheme could actually cost them value. As long as it's unclear how the DAEB scheme will be implemented, the market will remain uncertain. Why acting now is worthwhile:
Higher valuations for 2029
: The market still operates under private conditions, which allows childcare organizations to be sold at more favorable multiples.
Future restrictions loom
: The DAEB status may restrict profit distribution or sale to private parties, making sales more difficult.
Preparing in time increases your chances
: Anyone who already gains insight into the value of their company can quickly switch when the market changes.
How to increase your chances of successfully selling your childcare
The potential introduction of the DAEB scheme brings considerable uncertainty for childcare entrepreneurs. The value of your business will depend not only on current results but also on how well you are prepared for new regulations, changing margins, and market dynamics.
How to increase your chances of successfully selling your childcare:
Insight into business value
: A independent valuation Show your childcare business's current value and the factors that influence that value. This way, you'll understand the potential impact of future policy changes and whether it's beneficial to sell your business before or after 2029.
Strategic forward thinking
: By calculating different scenarios, you gain insight into potential risks and opportunities. This helps you make well-considered decisions about growth, sales, or restructuring.
Continue active monitoring
: The situation in the sector is changing rapidly. By maintaining regular contact with an M&A advisor, you'll stay informed about current valuations, market pressures, and regulations.
Practical tips for childcare entrepreneurs
Do you want to take steps now to prepare your organization for a potential sale before 2029? These practical tips will strengthen your position, regardless of how regulations develop:
Ensure current figures
: Work with up-to-date annual accounts and forecasts. Transparency in your figures builds trust with buyers and prevents unnecessary discussions during the due diligence investigation.
Map dependencies
: Analyze which revenue streams (locations, subsidies, parental contributions) are crucial to your business operations. This provides insight into risks and growth opportunities.
Prepare documentation properly
: Gather important documents such as contracts, permits, and lease agreements in a timely manner. This will speed up the sales process.
Spar with an advisor
: By consulting with an independent M&A advisor now, you will gain clarity about your strategic options.
Why is now the right time to seek advice?
The childcare market is on the cusp of major changes. Uncertainty surrounding the DAEB (General Administrative Law Act) scheme makes it difficult to make long-term decisions, even though valuations are still relatively favorable. Expert advice is crucial, especially during this transitional phase.
An experienced advisor will help you understand the current value of your business, the risks of waiting, and the opportunities that still exist. Whether you want to grow, restructure, or sell your childcare center: with the right guidance, you'll make well-informed decisions.
To receive well-founded advice, it's important to choose an advisor who knows the childcare market inside and out. Match Plan's childcare specialists know the sector inside and out and understand the challenges facing entrepreneurs like you.
Why choose Match Plan?
Match Plan has over 30 years of experience supporting entrepreneurs through acquisitions, valuations, and sales processes. As an independent advisory firm, we combine financial expertise with a deep understanding of the childcare sector.
Our consultants, including specialists who were entrepreneurs in the sector themselves, know exactly which factors influence the value and marketability of your organization.
What we can do for you:
- We prepare your company for sale by ensuring that your figures, legal documents and strategy are fully sales-ready.
- Through our extensive network in the Netherlands and abroad, we find the right buyer that fits your organization and vision.
- During negotiations, we ensure that price, conditions, and future plans are carefully recorded, taking into account both business and personal interests.
- We coordinate the entire process, from valuation and due diligence to the final transfer at the notary, so that the process runs smoothly and transparently.
With our personal and professional commitment, we ensure that you are well prepared for the future, with peace of mind and certainty at every stage of the process.
Contact
Please fill in your contact details and we will contact you as soon as possible.
"""*"" indicates required fields
Telephone
Would you prefer to contact us directly by telephone?
Then you can call +31 85 013 00 75.
- Over 30 years of experience
- 100% independent advice
- 1000+ entrepreneurs guided
Related blogs
No obligation Advice
Over 30 years of experience
Please feel free to contact us
advisors for an introduction.
✔ Business sale
✔ Company takeover
✔ Acquisition financing
✔ Independent assessment