Buying: A Nursery Business

Verify EBITDA multiples (typically 5–6x) and ensure profit margins sit between 20-30%.

Quality, profitable nurseries are in high demand with a currently limited supply. buying a nursery business

Confirm the staff-to-child ratios meet legal standards (e.g., 1:3 for under-twos) and that at least 50% of staff hold relevant level 2 qualifications. Verify EBITDA multiples (typically 5–6x) and ensure profit

Most well-run nurseries break even within 18–36 months post-acquisition. 4. Legal & Transition Steps Most well-run nurseries break even within 18–36 months

Lenders typically offer 60-80% Loan-to-Value (LTV) , meaning you will likely need a significant personal deposit.

Buying an existing nursery can be a faster route to profitability than starting from scratch, but it requires rigorous due diligence to ensure you're acquiring a healthy "cohort" of staff and families. 1. Market Assessment & Finding the Right Fit

Ensure all required registrations (such as Ofsted in the UK) are transferred or applied for correctly to avoid operational gaps.