Day Nurseries

We can design and help you to implement a tax efficient structure for your children’s day nursery business to ensure you are not paying more tax than you should. Amongst other services, we can also work with you to implement relatively low cost and simple changes to your current remuneration plan which can have a positive impact on current staff, as well as being attractive to potential employees.

This is particularly important now given the recruitment and retention challenges seen across the sector.

We have access to detailed benchmarking data that we will have collated as part of our audit work, enabling us to compare your key performance indicators to other operators.

Knowing whether it’s the right time to sell a children’s day nursery can involve a wide range of factors. 

Knowledge of the early years sector is vital in order to assess whether it is the right time to sell in terms of maximising value. Our experience and working with businesses in the sector every day means our knowledge is up to date and relevant to your business.

Preparing for the sale of a children’s nursery ideally takes place around two years in advance of the target sale date in order to ensure structures and processes are appropriate to maximise the return, although many can achieve a sale in much shorter timescales.

There are ways in which you can extract some value now without needing to sell the whole business. Our Corporate Finance experts are on hand to discuss tailored options available to your individual needs.

When valuing a children’s nursery, advisers generally look at:

• Historical forecast trading performance – cash flow, turnover and profitability
• Recent deals in sector (benchmarking)
• Risk & the market/economic conditions
• Freehold vs leasehold property.

As advisers for children’s day nurseries, we can help to get your business in optimal condition to prepare for sale and make the business attractive to potential buyers. Elements we will help you to consider include:

• Presenting the optimal financial position
• Considering restructuring to make the business more tax efficient
• Working to make yourself dispensable by building a solid management team and developing your successor/second tier management
• Having robust systems and processes in place will assist with integration.

Our specialist accountants can support with both statutory and management accounts for nursery businesses. For smaller nurseries, we can also help with online accounting software, submission of VAT returns, monthly payroll processing and much more, freeing up your time so you can focus on the running of your business.

Owning and managing a children’s day nursery is a fast-paced role and it is easy to be so focused on running the day-to-day operations that you don’t stop and think about the future. Our team will work with you to create a business strategy that sets out the goals you want to achieve, and the individual objectives which will help you reach them.

Two common ways for nurseries to grow is through acquisition of an existing nursery, or the acquisition of a property to develop into a nursery. Our team can help with raising finance for either option utilising their network of contacts in the industry who have a real interest in early years development.

Our team of Corporate Finance experts can guide you through the acquisition process, carrying out financial and tax due diligence as well as renewing the legal documentation to ensure you get appropriate protection from any legal liabilities.

Investor appetite remains high in the early years sector, despite current economic uncertainties and increasing costs of borrowing. We have a large network of contacts with mid-market banks who we can introduce to discuss your requirements further.