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Buying a Day Nursery

From converted Victorian terraces to large purpose-built childcare facilities, our listings include premises to suit every type of buyer. If you don’t find what you are looking for on our website then please call us to find out about confidential, off-market opportunities.

Call us on 0333 370 0000

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Large Children's Day Nursery - Brighouse
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Empty Nursery Premises To Let - West Midlands

The process

Many buyers of day nurseries are seasoned operators who have been through the process before. For others, though, it will be a brand new experience. Whatever your circumstances and background, Abacus will be on hand throughout the process to provide all the support and help you require.

1. Build your shortlist

We can help identify the best opportunities for you. We will put forward businesses that meet your chosen criteria, as well as others we believe would suit you, your budget and your circumstances. Our experienced, expert team can also talk you through the various finance options that might be suitable.

2. Make an offer

We can advise you on the process of making an offer and negotiating the terms of your purchase. We will share our extensive experience with you to help you secure the best opportunity on the fairest terms.

3. Due diligence

Once you have agreed terms with the seller you will need to look into the business in detail to make sure everything is as it should be. You will also need to make sure the legal contracts are properly drafted before the sale completes.

4. Completion

If required, we can recommend accountants and lawyers to help with the technical aspects of your purchase. We will be there to support you at throughout as the transaction progresses to completion.

Frequently asked questions about buying

You cannot operate a nursery without approval from the childcare regulator, Ofsted. The process for approving a new, first-time nursery owner can take around six months, so if you are in this situation you should inform Ofsted as soon as your offer is accepted. The process is much quicker for existing childcare operators making a bolt-on acquisition, whose paperwork usually takes around a fortnight to be completed by Ofsted.

This depends on a number of factors, including what you can afford. If you want to buy commercial premises using a self-invested personal pension, or as an investment, then you will need to look at freehold properties. If your main interest is in growing the business rapidly, and having maximum flexibility, then leasehold could be the better option.

A number of factors will affect the price you pay for a business. This includes whether it operates from a freehold property, which you will own outright, or if you will be renting the premises. Usually the price of a business will be calculated as a multiple of net profit plus the value of any assets. Location can play a big role in the value of nurseries, particularly if you are purchasing the freehold.

When buying a day nursery it is usually best to buy the company which operates the business. This means that all contracts with parents, staff and suppliers continue uninterrupted, minimising disruption.

If you buy a business that is still trading then any staff will have the right to stay on with that business, whether you buy the company or just the assets. You might be able to make staff redundant if their skills do not match your requirements, but this is unlikely to be how you want to start your journey with a new business. If you want to start from scratch with all your own staff it might be better to buy a closed business – although day nurseries can take some time to build up to full capacity, and profitability.

Whether you are investing your own money or borrowing to buy a day nursery, you should satisfy yourself that the business will generate enough money either comfortably to cover your loan repayments or to provide you a healthy return on your investment. Our advisers can help you with this calculation and, if borrowing to fund the purchase is appropriate, can put you in touch with a range of specialist lenders.

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