How much is my children's residential care business worth? | James Dixey
What is my children's residential care business worth?
Get a free, indicative valuation based on real market data. No documents needed — it takes around 60 seconds.
Updated April 2026Completely confidential
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Everything we ask, you already know. No documents or financials needed. Takes around 60 seconds.
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See what businesses like yours are selling for, based on up-to-date valuation multiples in your sector.
Indicative valuation range
£3.4m – £3.8m
£2.5m£5m
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Speak with an advisor who understands your market, can give you a more accurate valuation, and help you find the right buyer when you're ready.
How are children's residential care businesses valued?
Children's residential care homes are valued on a multiple of adjusted earnings (EBITDA), but the sector has some distinct characteristics that set it apart from adult care. Placement fees are typically much higher than in adult residential care, reflecting the complexity of the children's needs, the staffing ratios required, and the specialist nature of the provision. This means that even relatively small operations with just one or two homes can generate significant revenue, which makes them attractive to buyers.
What multiples do children's care homes sell for?
Multiples in children's residential care generally range from 5x to 9x adjusted earnings, with some well-positioned businesses achieving more. The sector has seen considerable acquisition activity in recent years, with both private equity-backed platforms and established children's services groups actively looking to grow. When we speak with buyers in this space, they are often willing to pay premium multiples for providers that can demonstrate consistent occupancy, strong Ofsted ratings, and a track record of positive outcomes for the young people in their care.
What factors affect the value of a children's care home?
Ofsted rating. Children's residential care is regulated by Ofsted rather than the CQC, and your rating carries significant weight. A "Good" or "Outstanding" rating is expected by most serious buyers. The detail matters too. Buyers and their advisors will read the full inspection report, paying particular attention to safeguarding, leadership, and outcomes for children.
Placement fees and occupancy. Weekly placement fees in children's residential care can range from £3,000 to over £10,000 depending on the complexity of need. Buyers will look at your average fee rates, how consistently your beds are occupied, and the strength of your referral relationships with local authorities.
Want a more accurate picture?
An online calculator is a useful starting point. Speak with our team to understand what your children's residential care could realistically achieve.
Referral relationships. Established relationships with local authority commissioning teams and social workers are a significant part of your goodwill. A provider that receives regular referrals from multiple local authorities is more valuable than one reliant on a single commissioner.
Staff team and registered manager. The quality and stability of your staff team is critical. Children's residential care requires high staffing ratios and specialist skills, and recruitment in this sector is notoriously challenging. A strong registered manager who will stay through a transition is something buyers specifically ask about in almost every conversation we have.
Regulatory compliance and record-keeping. Beyond the Ofsted rating itself, buyers will want to see robust safeguarding policies, clear incident reporting, and thorough care planning. Well-maintained records signal a well-run operation.
Property arrangements. Whether you own or lease your properties, and the suitability of those properties for their registered purpose, will affect your valuation. Homes in residential streets that blend into the community and meet Ofsted's environmental standards are preferred.
Is there strong demand for children's care home businesses?
Demand is very strong. There is a well-documented shortage of children's residential placements in the UK, and local authorities are frequently unable to find suitable provision for children with the most complex needs. This supply-demand imbalance has driven significant acquisition activity. Larger groups are looking to build scale, and new entrants backed by private capital are actively seeking established providers to acquire rather than starting from scratch. The Competition and Markets Authority has scrutinised the sector, but the underlying demand shows no sign of easing.
How does selling a children's care home differ from selling an adult care home?
The regulatory framework is different (Ofsted rather than CQC), the due diligence process tends to focus more heavily on safeguarding and outcomes, and the buyer pool is distinct. Placement continuity for the children is also a central consideration. Buyers, sellers, and regulators all want to ensure that a change of ownership does not disrupt the care of vulnerable young people. This means the transition period after completion often requires more careful planning than in adult care.
How long does it take to sell a children's residential care business?
Most sales take between five and ten months. The Ofsted registration process, any property transactions, and the sensitivity around placement continuity can all influence the timeline. Where multiple homes are involved, the complexity increases. Having your Ofsted documentation, staff files, and financial records in good order before coming to market is the single most effective thing you can do to keep the process on track.
How accurate is an online valuation for a children's care home?
An online valuation provides a useful indicative range, but children's residential care has enough unique variables that a closer look is usually worthwhile. The specifics of your placements, fee arrangements, property situation, and Ofsted history all play into the final figure. If the initial range looks interesting, a confidential conversation will help us give you a much more accurate picture.
