Inspect the building's foundation and structural safety. If renting, review the lease for potential rent increases that could strain your budget. 3. Financial Fundamentals Acquisition costs extend far beyond the raw asking price.
Use specialized Childcare Brokers or business-for-sale platforms like Daltons Business . 2. Rigorous Due Diligence buying a nursery business
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 Inspect the building's foundation and structural safety
Quality, profitable nurseries are in high demand with a currently limited supply. Rigorous Due Diligence Buying an existing nursery can
Verify EBITDA multiples (typically 5–6x) and ensure profit margins sit between 20-30%.
Lenders typically offer 60-80% Loan-to-Value (LTV) , meaning you will likely need a significant personal deposit.
Appoint a Solicitor and Accountant early to handle due diligence, negotiations, and the final purchase agreement.