Buying a day nursery is not simply a matter of comparing an asking price with annual turnover. A nursery can appear attractive because it has a strong Ofsted history, a full-looking register, attractive premises or a long trading history, while the underlying business may have falling occupancy, high staffing costs, lease issues or heavy dependence on the current owner.

Before making an offer, a buyer needs to establish what they are actually acquiring and whether the nursery’s earnings are sustainable under new ownership.

That means looking at financial performance, occupancy, fees, staffing, regulation, premises, management, local demand and future potential together.

The latest Department for Education Childcare and Early Years Provider Survey estimated 53,600 early years providers and 1,620,800 registered childcare places in England in 2025. Group-based providers accounted for 1,102,400 registered places. These figures provide useful sector context, but national statistics should never be treated as a valuation benchmark for an individual nursery.  

If you are assessing a specific acquisition, the following checks can help you decide whether the business justifies further investigation and what issues should be reflected in your offer.

---

1. Financial Performance and Sustainable Profit

The first question is not simply, “How much profit does the nursery make?”

It is:

How much sustainable profit is likely to remain after the business changes hands?

A buyer should request and review:

• Recent statutory accounts
• Recent management accounts
• Monthly turnover
• Monthly payroll
• Private fee income
• Funded childcare income
• Rent
• Business rates
• Utilities
• Food costs
• Insurance
• Repairs and maintenance
• Training
• Professional fees
• Agency staffing
• Other recurring overheads

Look at several years where possible rather than relying on one profitable year.

Pay particular attention to the difference between reported profit and sustainable profit.

For example, reported profit could look strong because the owner works substantial hours but pays themselves less than the cost of employing an equivalent manager. If a buyer needs to employ a manager after completion, the real operating profit could be materially lower.

The same applies to unusually low maintenance expenditure, temporary reductions in staffing costs or income that is unlikely to recur.

Questions to ask

• Is turnover stable, increasing or declining?
• Has profitability followed the same trend?
• Are margins being maintained?
• How much does the owner currently work in the business?
• Is the owner’s remuneration included at a realistic level?
• Are agency costs unusually high?
• Are there one-off income or expense items?
• Have recent fee increases artificially lifted turnover?
• Are there deferred repairs or maintenance costs?
• Does the business generate enough cash to support its normal operations?

The DfE’s 2024 provider survey found that staffing represented the largest proportion of costs for group-based providers, while rent and mortgage costs were the second-largest cost category. The survey also provides official evidence on provider income, costs, fees and profitability.  

This does not establish what a particular nursery should earn. It does, however, demonstrate why payroll and property costs deserve close attention.

For a deeper look at valuation methodology, see Abacus Day Nursery Sales’ guide to  ⁠how to value a nursery business.

---

2. Occupancy and Capacity

Occupancy is one of the most important areas to investigate before making a nursery offer.

Do not rely on statements such as “the nursery is a 100-place setting”.

The DfE defines registered places as the maximum number of children a provider is allowed to look after at one time. Booked places are the children booked to attend on an average weekday, while spare places are additional places the provider is willing and able to fill.  

These figures are not interchangeable.

A nursery might have:

100 registered places

but perhaps only:

82 places booked

and fewer children actually attending on a particular day.

The position can become more complicated because children attend different numbers of days and may be spread across different rooms.

Request occupancy information showing:

• Registered places
• Children on the register
• Booked places
• Actual attendance
• Occupancy by month
• Occupancy by age
• Occupancy by room
• Occupancy by day of the week
• Available places
• Waiting lists
• Enquiries
• Lost enquiries
• Reasons for rejected or lost enquiries

The 2025 DfE survey estimated an average of 51 registered places per group-based provider in England. It also warns that spare capacity should be treated as indicative because providers do not always think about capacity purely in terms of places, particularly where children attend different sessions.  

Age mix matters

A nursery with 80 children is not necessarily economically equivalent to another nursery with 80 children.

Children of different ages can require different staffing arrangements, while fees may also vary by age.

Therefore, analyse occupancy alongside:

• Age
• Sessions
• Fees
• Staffing
• Room capacity

A buyer should be particularly cautious about paying for theoretical capacity that the nursery has not demonstrated it can fill profitably.

---

3. Fee Structure and Revenue Quality

Turnover alone does not tell you enough.

Two nurseries with similar occupancy can generate very different revenues because of differences in fee rates, attendance patterns and customer mix.

Request the nursery’s current fee structure, including:

• Hourly rates
• Daily rates
• Full-day packages
• Half-day sessions
• Sibling discounts
• Registration fees
• Deposits
• Meals
• Consumables
• Additional charges
• Late collection fees
• Holiday arrangements
• Funded childcare arrangements

Then compare those rates with actual revenue.

The 2025 DfE survey reported mean hourly parent-paid fees in England of £7.18 for children under two, £7.09 for two-year-olds and £6.78 for three- and four-year-olds. These are national statistics, not recommended prices or valuation benchmarks for an individual nursery.  

The more important question for an acquisition is:

What does this particular nursery actually collect per child and per booked place?

Look at private-paying families separately from funded children.

Also investigate:

• Fee arrears
• Bad debts
• Discounts
• Fee increases
• Customers receiving reduced rates
• Revenue concentration
• Whether fees have recently changed

A nursery showing strong headline turnover may have a less attractive revenue profile if a large proportion depends on lower-margin funded provision or if fees are significantly below comparable local settings.

---

4. Funded Childcare and Government Funding

Funded childcare should be analysed separately from private fee income.

Ask the seller to explain:

• Number of funded children
• Funded hours claimed
• Funding rates
• Local authority arrangements
• Term-time provision
• Stretched funding arrangements
• Additional charges
• Funding reconciliations
• Payment timing
• Adjustments or clawbacks
• Proportion of total revenue generated through funding

The buyer needs to understand how the nursery earns money from funded places and how that income interacts with its actual cost base.

Do not assume that a funded place produces the same commercial result as a privately paid place.

Review funding documentation and recent payments rather than relying solely on a seller’s forecast.

Funding arrangements can also affect occupancy analysis. A nursery might appear highly occupied while having a different revenue mix from a setting with a similar number of privately paying children.

---

5. Staffing, Payroll and Management Dependency

Staffing is central to nursery economics.

The buyer should request a current staff list showing, where appropriate:

• Job title
• Hours
• Pay
• Qualifications
• Employment status
• Length of service
• Management responsibilities
• Vacancies
• Agency usage

Also examine:

• Staff turnover
• Sickness absence
• Overtime
• Agency expenditure
• Recruitment problems
• Training costs
• Pension costs
• Holiday liabilities
• Apprentices
• Temporary workers

The 2025 DfE survey estimated 353,700 paid childcare staff across early years provision in England, including 265,400 working for group-based providers. The survey also provides separate data on temporary staffing and statutory staff-to-child ratios.  

Understand staff-to-child ratios

A staff-to-child ratio is the minimum number of staff required in relation to the number and age of children.

For example, the EYFS framework contains different requirements for children under two, two-year-olds and children aged three and four, with qualification requirements affecting some ratios.

The precise calculation should therefore be checked against the current EYFS framework and the qualifications of the actual staff employed. The DfE’s current framework is mandatory for group and school-based providers in England.  

Do not simply count employees.

Ask:

Can the current staffing structure support today’s occupancy profitably?

Then ask:

What additional staffing would be required if occupancy increased?

Owner dependency

Investigate how much the seller personally contributes.

Does the owner:

• Handle admissions?
• Manage staff?
• Cover rooms?
• Deal with parents?
• Manage funding claims?
• Handle compliance?
• Run payroll?
• Purchase supplies?
• Resolve complaints?

If the owner is effectively performing a full-time management role without an equivalent management cost appearing in the accounts, sustainable profit may be overstated.

---

6. Ofsted History and Regulatory Position

A buyer should review the nursery’s Ofsted history before deciding what to offer.

Check:

• Current registration
• Latest inspection report
• Previous inspection reports
• Findings
• Areas requiring improvement
• Safeguarding findings
• Enforcement information where publicly available
• Registration details
• Any disclosed regulatory matters

Do not reduce this assessment to:

“Good Ofsted rating means good acquisition.”

Ofsted’s current Education Inspection Framework, used from November 2025, evaluates registered early years providers across seven areas:

1. Safeguarding
2. Inclusion
3. Curriculum and teaching
4. Achievement
5. Behaviour, attitudes and establishing routines
6. Children’s welfare and wellbeing
7. Leadership and governance  

Read the actual inspection report.

The report may identify weaknesses that are more commercially relevant to a buyer than the headline outcome.

A buyer should also understand whether circumstances have changed since the last inspection.

For example, a nursery may have had a different manager, different staffing structure or different occupancy profile since the inspection.

---

7. EYFS, Safeguarding and Compliance

The current EYFS statutory framework for group and school-based providers applies in England and covers learning and development, assessment, safeguarding and welfare requirements. The latest framework took effect from September 2026.  

Before making an offer, request appropriate evidence relating to:

• Safeguarding arrangements
• Safer recruitment
• DBS checks
• Staff suitability
• Paediatric first aid
• Safeguarding training
• SENCO arrangements
• Accident records
• Incident records
• Complaints
• Risk assessments
• Fire safety
• Health and safety
• Food safety
• Attendance records
• Staff records
• Children’s records
• Policies and procedures
• Required training

The purpose is not to conduct full legal due diligence at this stage.

It is to identify whether there are obvious issues that could materially affect the acquisition.

For example, incomplete staff records or unresolved safeguarding matters should not simply be treated as paperwork problems. They may require further investigation and could have operational, regulatory or financial consequences.

---

8. Nursery Premises and Property

For many acquisitions, the property is almost as important as the trading business.

First establish whether the nursery is:

• Leasehold
• Freehold
• Operating under another property arrangement

For a leasehold nursery, review:

• Remaining lease term
• Current rent
• Rent review provisions
• Break clauses
• Assignment provisions
• Landlord consent
• Repair obligations
• Dilapidations
• Service charges
• Restrictions on use
• Renewal provisions

Also inspect the physical premises.

Look at:

• Building condition
• Outdoor play space
• Parking
• Accessibility
• Toilets
• Kitchen
• Heating
• Ventilation
• Security
• Fire safety
• Equipment
• Maintenance
• Required capital expenditure
• Expansion possibilities

A nursery with attractive accounts can become considerably less attractive if substantial property expenditure is imminent.

Do not assume a lease can simply be transferred as part of the business purchase. The precise requirements depend on the lease and transaction structure, so specialist legal advice is appropriate.

For buyers considering leasehold acquisitions, Abacus’s guide to  ⁠lease negotiation tips for nursery buyers can provide additional context.

---

9. Local Demand and Competition

A nursery’s historic occupancy does not automatically prove that future occupancy will remain strong.

Investigate the local market using available evidence such as:

• Competing nurseries
• Local childcare supply
• Local authority information
• Population trends
• New housing development
• Employment patterns
• School locations
• Nursery closures
• New nursery openings
• Local fee levels

Local authority childcare sufficiency information can be useful because local authorities assess childcare provision and demand in their areas.

However, demographic growth alone does not guarantee higher occupancy.

The strongest evidence remains the nursery’s own:

• Enquiry records
• Waiting list
• Conversion rates
• Occupancy trend
• Lost enquiry data
• Parent retention

---

10. Reputation and Parent Relationships

A nursery’s reputation is an intangible commercial asset, but it should be assessed through evidence rather than assumptions.

Look at:

• Parent retention
• Enquiries
• Registrations
• Waiting lists
• Complaints
• Referrals
• Parent feedback
• Online reviews
• Length of customer relationships

Online reviews can provide useful context, but they should not be treated as a complete assessment of the business.

A better question is:

Are families actually staying with the nursery and recommending it to others?

Ask for evidence where it can reasonably be provided.

A sudden increase in negative feedback, falling enquiries or unusually high customer turnover may deserve investigation even where the latest Ofsted inspection is positive.

---

11. Owner Dependency and Management Strength

A nursery is more transferable when its systems and management structure can operate without the seller.

Ask:

• Who opens and closes the nursery?
• Who manages staff?
• Who handles admissions?
• Who manages safeguarding?
• Who deals with parents?
• Who handles funding?
• Who manages suppliers?
• Who manages compliance?
• Who deals with Ofsted?
• Who manages financial administration?

Then establish whether key people will remain after completion.

A strong manager who intends to remain can reduce transition risk.

Conversely, if the seller personally manages almost every important function, the buyer needs to understand what will happen after completion.

This can also affect valuation because replacing the seller may introduce additional salary costs.

---

12. Growth Potential

Buyers often see spare capacity and immediately calculate additional revenue.

That can be misleading.

Unused capacity only represents a genuine commercial opportunity if:

1. There is sufficient local demand.
2. Parents are willing to pay the relevant fees.
3. The premises can accommodate additional children.
4. Staffing requirements can be met.
5. Additional revenue exceeds the associated costs.

For example, adding children to a room may require another practitioner. If the additional revenue largely disappears into payroll, the commercial value of the additional occupancy may be limited.

Investigate:

• Spare places
• Waiting lists
• Room utilisation
• Session availability
• Fee levels
• Staffing constraints
• Premises constraints
• Local competition

Treat growth as a hypothesis to test, not as value that automatically belongs in the offer.

---

13. What Should Make a Buyer Pause Before Making an Offer?

A warning sign does not automatically mean a nursery should not be purchased.

It means the issue needs to be understood.

Potential warning signs include:

Warning sign	What to investigate
Falling occupancy	Why are children leaving and enquiries changing?
High agency use	Is there a persistent recruitment or retention problem?
High staff turnover	What is causing departures?
Owner dependency	What will replace the seller’s role?
Unexplained profit changes	Are they temporary or sustainable?
Short lease	Can the business continue securely after acquisition?
Major rent increase	What happens to future profitability?
Significant repairs	How much capital expenditure is required?
Compliance concerns	What action and cost may be required?
Funding uncertainty	Can reported funding income be verified?
Weak records	Why is information missing?
High customer concentration	Could several departures materially reduce revenue?

The purpose is not to eliminate every risk.

It is to identify the risks before you price the transaction.

---

14. What Information Should a Buyer Request Before Making an Offer?

A practical pre-offer information request can be divided into four areas.

Financial

Request:

• Recent accounts
• Management accounts
• Monthly turnover
• Payroll
• Rent
• Utilities
• Business rates
• Funding income
• Private fee income
• Major expenses
• Debts and liabilities

Operational

Request:

• Registered capacity
• Occupancy
• Attendance
• Waiting list information
• Opening hours
• Room structure
• Staff list
• Staff qualifications
• Agency usage
• Fee schedule

Regulatory

Request:

• Ofsted registration information
• Latest Ofsted report
• Relevant inspection history
• Key policies
• Safeguarding information
• Compliance information

Property

Request:

• Lease or title information
• Current rent
• Rent reviews
• Break clauses
• Assignment provisions
• Landlord information
• Planning/use information
• Known maintenance issues

Also identify:

• Major supplier contracts
• Funding arrangements
• Insurance
• Significant liabilities
• Customer concentration

You do not need every document in a formal due diligence data room before making an offer. The objective is to obtain enough reliable information to understand the opportunity and identify material risks.

---

15. How These Findings Should Influence the Offer

The asking price should be treated as the starting point for investigation, not as proof of value.

Your pre-offer assessment should help you understand whether the price appears consistent with:

• Sustainable earnings
• Occupancy
• Fee levels
• Staffing costs
• Management structure
• Property position
• Lease security
• Regulatory position
• Local demand
• Capital expenditure
• Identified risks

The findings may affect not only the price but also the proposed transaction structure.

Potential issues to discuss with professional advisers include:

• Purchase price
• Deal structure
• Conditions
• Completion timetable
• Lease requirements
• Seller transition support
• Retention of key staff
• Warranties
• Indemnities
• Working capital

There is no universal formula for determining the correct offer. A nursery with strong earnings but a short lease presents a different proposition from a similarly profitable nursery with a secure long-term property position.

Likewise, a nursery with spare capacity is not automatically worth more than one operating at high occupancy if that spare capacity cannot be converted into profitable revenue.

For additional context, see Abacus’s guide to  ⁠factors that affect the asking price of a child nursery.

---

16. What to Check Before an Offer vs After an Offer

A useful distinction is between commercial assessment and formal due diligence.

Before making an offer

Focus on:

• Asking price
• Financial performance
• Occupancy
• Fees
• Staffing
• Ofsted
• EYFS and compliance risks
• Premises
• Lease
• Local demand
• Management dependency
• Major liabilities
• Broad valuation logic

The purpose is to determine whether the opportunity merits an offer and what issues should influence that offer.

After an offer is accepted

Formal due diligence can examine:

• Detailed accounts
• Tax
• Payroll
• Employment matters
• TUPE implications where applicable
• Contracts
• Lease
• Property
• Insurance
• Funding
• Compliance
• Assets
• Liabilities
• Working capital
• Corporate structure
• Legal matters

The pre-offer review does not replace formal due diligence.

It prevents a buyer from entering negotiations without understanding the major commercial issues.

There is also an important Ofsted consideration. Where an organisation takes over an existing childcare provider through a merger or acquisition, Ofsted states that the childcare must be correctly registered. Depending on the transaction structure, a new legal entity may need registration or an existing organisation may need approval for additional premises.  

This should be addressed early with the appropriate professional advisers because the registration structure can affect transaction planning and continuity of childcare.

For broader acquisition preparation, see Abacus’s guide to  ⁠things to know before buying a day nursery business.

---

17. Practical Pre-Offer Nursery Buyer Checklist

Before making an offer, ask:

• Is the reported profit sustainable?
• Do I understand monthly revenue?
• Do I understand the main cost categories?
• Do I know occupancy by age group?
• Do I know actual booked and available capacity?
• Have I reviewed occupancy trends?
• Do I understand private and funded income?
• Are staffing levels sustainable?
• Is agency staffing significant?
• Do I understand staff turnover?
• Is there a capable management team?
• Is the nursery dependent on the current owner?
• Have I reviewed the Ofsted history?
• Have I investigated any identified regulatory issues?
• Have I reviewed the current EYFS requirements relevant to the setting?
• Have I checked the lease or freehold position?
• Are major repairs or capital expenditure required?
• Are rent increases or lease events approaching?
• Is local demand supported by evidence?
• Do I understand the competitive environment?
• Do I understand the funding arrangements?
• Are there material debts or liabilities?
• Does the asking price make sense against the nursery’s actual performance?
• Have I identified issues that require formal due diligence?

---

FAQs

What should I check before making an offer on a nursery?

Start with the nursery’s sustainable financial performance, occupancy, fee structure, staffing, Ofsted position, premises and lease. Then investigate management dependency and local demand. Request enough information to understand monthly revenue, payroll, occupancy, registered capacity, funding income and major overheads. Review the latest Ofsted report rather than relying only on its headline outcome. For leasehold settings, understand the remaining lease term, rent and assignment provisions before treating the business as a secure acquisition. The aim is not to complete full legal due diligence before an offer. It is to identify material risks and establish whether the asking price appears supportable.

How do I know if a nursery is profitable?

Review several years of accounts alongside recent monthly management accounts. Then adjust your analysis for costs that may change after acquisition, particularly owner remuneration, management salaries, agency staffing, repairs and other unusual expenses. A reported accounting profit is not necessarily the same as sustainable operating profit for a new owner. Compare revenue with occupancy, fee rates and staffing costs to understand what produces the profit. The DfE’s provider survey provides sector-level evidence on childcare income and costs, but national averages should not be used as a substitute for analysing the individual nursery’s accounts.  

How important is occupancy when buying a nursery?

Occupancy is a major part of assessing a nursery because it directly relates to the number of places being sold and the revenue generated from them. However, registered capacity, booked places and actual attendance are different measures. The DfE’s 2025 survey defines registered places as the maximum number of children a provider is allowed to look after at one time, while booked places represent children booked to attend on an average weekday.   A buyer should therefore examine occupancy by age, room, day and month rather than relying on one headline percentage.

What financial information should a nursery buyer request?

At minimum, request recent statutory accounts, current management accounts, monthly revenue, payroll, rent, business rates, utilities, insurance, food, repairs, professional fees, agency expenditure and funding income. Also request information showing private fee income, arrears and major unusual transactions. Where possible, compare monthly figures against occupancy and fee changes. This helps establish whether changes in turnover are caused by more children, higher fees, funding changes or other factors. The buyer should also identify costs that may increase after completion, such as management salaries or maintenance expenditure. Formal financial due diligence should subsequently verify the information supplied.

Should I review the nursery’s Ofsted report before making an offer?

Yes. The Ofsted report provides information about the setting’s regulatory and educational position and can identify strengths and areas requiring improvement. However, the report should be read rather than reduced to its headline outcome. Ofsted’s current early years inspection framework evaluates safeguarding, inclusion, curriculum and teaching, achievement, behaviour and routines, children’s welfare and wellbeing, and leadership and governance.   Buyers should also establish whether staffing, management or operating practices have changed since the inspection, because the current business may not be identical to the setting inspected.

How important is the nursery manager when buying a nursery?

The manager can be commercially significant because they may carry out functions that would otherwise fall to the buyer. Establish who manages staff, admissions, parent relationships, safeguarding, compliance, funding claims and day-to-day operations. Find out whether the manager intends to remain after completion and whether their current salary is reflected appropriately in the accounts. A nursery that requires the buyer to replace both the owner and the manager can have a different cost structure from a nursery with an established management team. This is particularly relevant when assessing sustainable profit and transition risk.

What should I check in a nursery lease?

Check the remaining term, rent, rent review provisions, break clauses, assignment provisions, landlord consent requirements, repair obligations, service charges and restrictions affecting the nursery’s operation. Also establish whether significant dilapidation or maintenance costs may arise. The lease should be reviewed by a suitably qualified solicitor because the commercial consequences depend on its exact wording and the proposed transaction structure. Do not assume that buying the business automatically gives the buyer unrestricted rights to occupy the premises. The security of the premises can materially affect the commercial value of a leasehold nursery.

How does funded childcare affect a nursery acquisition?

Funded childcare should be analysed separately from privately paid childcare. A buyer should establish how many children receive funded hours, how many hours are claimed, what funding rates apply, whether provision is term-time or stretched and whether additional charges apply. Review actual funding payments and reconciliations rather than relying only on projected revenue. The key issue is understanding the relationship between funding income, occupancy and the nursery’s costs. A nursery with a high proportion of funded provision can have a different revenue and margin profile from a nursery with more privately paid sessions, even where their occupancy levels appear similar.

Should I make an offer based on the asking price?

The asking price is one input into the acquisition assessment, not proof of value. Before making an offer, compare the price with sustainable earnings, occupancy, fee levels, staffing requirements, management structure, property position, lease security and identified risks. Consider whether reported future growth depends on assumptions that have not been demonstrated. A buyer should also allow for issues that may require additional expenditure after completion. The appropriate offer will depend on the specific business and transaction structure, so there is no single percentage reduction or valuation multiple that applies to every nursery.

What are the biggest warning signs when buying a nursery?

Common issues requiring investigation include falling occupancy, high agency use, staff turnover, unexplained changes in profitability, weak management structures, short leases, significant upcoming rent increases, substantial repairs, unresolved compliance matters and poor financial records. A large gap between registered capacity and actual booked places can also require explanation. None of these issues automatically makes an acquisition unsuitable. The important question is whether the buyer understands the cause, likely duration and financial effect of the issue. If the problem cannot be adequately explained before an offer, it may need to be reflected in the offer structure or investigated through formal due diligence.

What should I check about nursery staff before buying?

Request a staff list showing roles, hours, pay, qualifications and management responsibilities. Review staff turnover, vacancies, sickness, overtime, agency use and recruitment difficulties. Then assess whether the staffing structure is sufficient for the current occupancy and whether additional employees would be needed to increase occupancy. The EYFS contains statutory staff-to-child ratio and qualification requirements for group and school-based providers in England, so staffing should be assessed against the actual ages of children and qualifications of staff.   Employment matters should then be examined in greater detail during formal due diligence.

Is a nursery’s Ofsted rating enough to decide whether to buy?

No. The Ofsted position is relevant, but it is only one part of the acquisition assessment. A buyer also needs to understand sustainable profit, occupancy, staffing, fees, funding, management, premises and local demand. The current Ofsted framework provides a more detailed picture through its evaluation areas, including safeguarding, inclusion, curriculum and teaching, achievement, behaviour and routines, children’s welfare and wellbeing, and leadership and governance.   A favourable inspection outcome does not establish that the asking price is commercially justified, while an identified weakness should be investigated rather than considered in isolation.

---

The Purpose of the Pre-Offer Assessment

A nursery buyer should assess the business as a combination of:

financial performance + occupancy + staffing + regulation + premises + management + local demand + future potential

The objective is not to find a nursery with no risks.

The objective is to understand:

• What you are actually acquiring
• What produces the nursery’s income
• What produces its profit
• What could reduce that profit
• Which risks require further investigation
• Whether the asking price is supported by the evidence
• What conditions or protections may be relevant to the transaction

A disciplined pre-offer assessment allows a buyer to enter negotiations with a clearer understanding of the business rather than relying on the asking price, headline occupancy or Ofsted outcome alone.

Once an offer is accepted, formal financial, legal, property, employment and regulatory due diligence should go substantially deeper before completion. For buyers planning the funding side of an acquisition, Abacus’s guide to  ⁠financing a nursery purchase provides a useful related resource.