2025 Mid-Year Childcare Sector M&A Overview: Key Insights for Investors and Operators
CLICK HERE TO READ THE FULL REPORT
The Australian Child Care Services sector continues to stand out as one of the most resilient and strategically important segments in the nation’s mergers and acquisitions (M&A) landscape. According to the newly released 2025 Mid-Year Childcare Sector M&A Overview, the sector has demonstrated exceptional consolidation activity over the past five years, even as broader economic challenges persist.
A Sector Defined by Stability and Growth
With annual revenue exceeding $22.3 billion and more than 14,700 government-approved services, the childcare sector is underpinned by strong government funding, demographic growth, and defensive investment characteristics. In 2025, the childcare property market alone saw transactions reach approximately $205 million—a 58% increase in volume compared to Q1 2024.
International Investment and Domestic Trends
While international investors have dominated the largest transactions—such as Bright Horizons’ $450 million acquisition of Only About Children and Busy Bees’ purchase of Think Childcare—domestic strategic acquisitions have been more modest in both volume and value. This trend reflects a maturing market, with many of the largest operators already consolidated or under international ownership.
The domestic mid-market remains active, primarily through platform consolidation by listed operators like Mayfield Childcare and G8 Education, as well as regional expansion by established players. The sector’s essential service status, robust government subsidy support (over $16 billion annually), and high regulatory barriers continue to attract both strategic and financial buyers.
Key Market Characteristics and Competitive Dynamics
Market Size: Industry revenue is projected to reach $22.3 billion in 2025, with 6.7% annual growth over the past five years.
Government Investment: Child Care Subsidy expenditure is set to exceed $16 billion, with an additional $5 billion allocated to building a universal early childhood education system.
Business Structure: The market is increasingly consolidated, led by operators such as G8 Education, Goodstart Early Learning, and Affinity Education Group.
The sector is highly regulated, with quality ratings and compliance directly impacting occupancy and operational performance. Recent transactions, such as Mayfield Childcare’s $39.2 million acquisition of 14 Genius Childcare Centres and G8 Education’s $26.5 million divestment of underperforming centres, highlight the focus on scale, operational efficiency, and portfolio optimisation.
Looking Ahead
As the sector matures, domestic M&A activity is expected to remain focused on operational excellence, regulatory compliance, and strategic portfolio management. International buyers are likely to continue dominating major transactions, while domestic operators pursue regional consolidation and efficiency gains.
CLICK HERE TO READ THE FULL REPORT
For a confidential, obligation-free discussion about how these insights could apply to your business, or to explore your options, contact the Morgan Business Sales team today.
Contact Morgan Business Sales
📞 1300 577 297
📩 support@morganbusinesssales.com
💻 www.morganbusinesssales.com
