GLOBAL CHILDCARE PROPERTY REPORT UK EDITION - THE COMPLETE CHILDCARE BROKER - AUTUMN/WINTER 2019 - Business Buyers
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
GLOBAL RATED AS EXCELLENT CHILDCARE PROPERTY REPORT UK EDITION AUTUMN/WINTER 2019 THE COMPLETE CHILDCARE BROKER
GLOBAL CHILDCARE PROPERTY REPORT UK EDITION - 2019
UK OVERVIEW
by PAUL J MILLER
Chief Executive Officer
2019 – A RECORD BREAKING As we enter the final months of 2019, portfolios both geographically and by way
it is a good time to pause and reflect of setting numbers and childcare places.
YEAR FOR THE UK on the significant level of deal volumes These profitable groups are able to access
CHILDCARE MARKET which have taken place in the first eight low cost funding to assist with their rapid
months of the year. Against a backdrop expansion plans. This demand continues
of significant economic and political to be strong and we fully expect to be
uncertainty the demand for acquiring high announcing further group acquisitions in
quality childcare businesses has increased the near future.
to an all-time high.
Additional demand is also being driven by
As at the end of August 2019, Redwoods the increase in international investors who
Dowling Kerr have brokered the sale in are seeking to buy and build in the UK to
excess of £40m worth of children’s day further drive their global growth strategies.
nursery businesses. With a significant In February La Maison Bleue announced
pipeline due to complete by the year end their acquisition of The Old Station Nursery
we expect this figure to grow significantly group which was their first UK purchase.
before we close the year out in December. La Maison Bleue (LMB) is backed by
Towerbrook and BpiFrance and has strong
Demand Drivers? ambitions to become a leading player in
One of the key drivers behind the demand Europe.
is the sizeable appetite from the growing
groups who are seeking to expand their
133%
Average places per Increase in GROUP
sold setting has risen SALES by
75 places 75%
from 64 places to
increase in value
of transactions
compared to last
year
2
SOLD
Noah’s Ark Day Nursery
Chester
Redwoods Dowling Kerr Sells
Long-Established Childcare Setting
Within Only 14 Days
Kids Planet Day Nurseries Limited have
successfully acquired Noah’s Ark Day
Outside of the EU, Redwoods Dowling Kerr many new instructions going under offer Consequently, we expect the level of Nursery in Great Boughton, Chester. The
have been working with buyers from China, within 1-2 weeks of their marketing activity supply in the marketplace to continue acquisition of the nursery and out of school
Asia, Middle East and also from the USA. commencing. In many instances, the price to increase as more owners seek to club brings the providers total settings
UK childcare opportunities are seen as the paid is well in excess of the value which the realise the fruits of their many years of across the North West and Midlands to
benchmark for educational standards by owners are seeking to achieve. dedication. The question is whether the 43 nurseries, with a combined capacity in
foreign investors and the current low value increase is sufficient to meet the strong excess of 5,500 children.
in sterling adds further appetite to the Whilst this is extremely encouraging for demand which exists from all the Delighted with the support and service
demand drivers for acquiring UK assets. sellers we are finding that having the potential buyers. the Vendor, Marc Owen said:
Indeed, it is worth noting that a recent right broker representing the sellers is
“Starting with our initial contact right at
article in the Telegraph highlighted that UK crucial to ensuring that the initial agreed The Outlook?
the start of when I was considering selling
plc’s are currently being acquired at a rate offer is secured and crystallised when the We are aware of some industry my business the team at RDK put my
of one per fortnight by overseas investors deal completes. This is one of the reasons observers commentating about a mind at rest that I was dealing with the
and organisations. why we remain an integral part of any predicted decrease in deal activity and right professional people. All throughout
transaction that we undertake, and which a reduction in the multiples which the the extensive process I have received the
A Question of Supply? has been recognised by a number of our buyers are prepared to pay. Redwoods guidance and support that has made it
In the past few years we have written legal partners in 2019. Dowling Kerr do not share this view possible to reach a successful sale of Noah’s
frequently regarding the lack of supply and in our opinion, we believe that the Ark day Nursery to the perfect buyer. It was
of good quality group disposals. In 2019 Even though we are enjoying increased buyer demand still outstrips supply and always very important to me that whoever
subject to any economic/Brexit shocks purchased the nursery would hold the
we have witnessed an upturn in the levels of deal activity it should be
same ethos as we always have and the
level of supply as increasing number of remembered that the childcare market we believe that the current market
team at RDK realised how important this
owners seek to take advantage of the is still highly fragmented with significant conditions are extremely favourable for was to us and helped us through the
current buoyant market conditions. scope for consolidation. the remainder of 2019 and into 2020. process of finding the right match for the
These transactions are benefitting from sale. The future of Noah’s Ark Day Nursery is
unprecedented deal timescales with in safe hands and your support has helped
me to make that happen.
I would have no hesitation in
recommending RDK or using you again in
OVERSEAS INVESTMENT IS BEING DRIVEN the future.”
BY A COMBINATION OF THE EXCELLENT
REPUTATION OF THE UK CHILDCARE SECTOR
AND THE GOOD VALUE REPRESENTED BY
THE CURRENT WEAKNESS OF STERLING.
3
GLOBAL CHILDCARE PROPERTY REPORT UK EDITION - 2019
HOW DO YOU VALUE A CHILDCARE BUSINESS IN A
RISING MARKET?
by ANDREW K STEEN
Sales and Marketing Director
HOW MUCH IS MY BUSINESS WORTH?
UK CHILDCARE: STRONG, Historically this question would be
answered by evaluating the financial
is broadly equivalent to the number of
purchasers.
SUSTAINABLE DEMAND IS information, reviewing the business
DRIVING NEW LEVELS OF performance and then factoring in market
multiples before advising of a price which I
However, in the Childcare market we are
not dealing in simple Economics. We are
SALE MULTIPLES would expect an owner to receive for their dealing with the Early Years Development
business. of our children and many other factors
come into play.
The format works perfectly well when
buyer demand and seller supply are fairly For example, the quality of childcare
evenly matched and transaction prices are provided, the quality of staff, the size of the
relatively stable. However, these conditions setting, potential for growth and expansion
are not applicable to the current childcare not to mention the results currently being
market where in key regions demand for achieved. Overlay this with the strategic
acquisitions significantly outstrips supply. goals of larger Childcare Organisations
such as number of places and settings
In simple Economic models the underlying they wish to grow to, the regions/countries
principles are that prices will rise until where they want representation and their
demand and supply regain a level of need to grow and deliver returns for their
equilibrium i.e. the prices (or in this case investors and you introduce a number of
multiples rise) until the number of sellers additional variables all of which are having
Multiples
4
SOLD
Ark Childcare (UK) Ltd
Shrewsbury
Group of two nurseries sold by Redwoods
Dowling Kerr
Established for many years under the
careful ownership of Vendor, Roz Young,
Ark Childcare (UK) Ltd in Shrewsbury,
a positive effect in driving multiples in the number of settings in a small geographic This is a surprising new trend given the Shropshire has cultivated an impressive
current market. area? Are all of your settings full with increased levels of transactional due reputation for providing quality childcare
waiting lists? Do you offer types of childcare diligence which take place ahead of across two nursery settings.
The strong, sustainable demand which not available by any other providers? completion. This is just one of the
exists for good quality childcare businesses non-cash benefits to transacting in a Delighted with the attentive service the
is driving a new level of multiples which Once you have evaluated all of your USP’s high demand market place. Vendor, Miss Roz Young said:
historically has not been present. This the next stage is to sit down with a broker “I would like to thank Redwoods
creates a time lag effect as traditional and talk about the sale process. The sale Other factors which can be achieved Dowling Kerr and in particular Natasha
valuation companies struggle to keep process is the method by which the broker are; Satterthwaite for all of their help, advice
up with the latest deal multiples as they will sell your business, it is the process and assistance in selling my childcare
are unable to gain sufficient comparable which will drive the added value and • Post completion consultancy group. It is such a huge mix of emotions
evidence to satisfy their banking clients. By achieve the best multiples possible. agreements when you decide the time is right to pass
the time they reach the level required, the • Earn outs the reigns on, but I have many wonderful
market has moved on and once again they A question of price? • Purchase of cash currently in the memories and I’m confident that the new
are playing catch up Often people will mistake “value” as the business owners will continue to move the business
forward and care for the parents, children
price which is achieved upon the point • Buyer’s taking “a view” on detrimental
and staff. Redwoods Dowling Kerr were
How do you value in a rising market? of exit. Whilst this is the most significant business factors incredibly helpful and supportive with all
The answer to this question is to evaluate aspect of “value”, other factors have • Reduction in vendor warranties aspects of the sale particularly as this is not
the old and the new. Using traditional to be taken into consideration when • Tax efficient structuring of the deal a process I have been through before. They
valuation methods will provide you with determining the overall value. are always only a phone call away and go
a benchmark or floor by which you then above and beyond to ensure you get where
build on. The next stage is to then factor in A significant benefit of selling in today’s Achieving the above is conditional you need to be. They pushed hard to ensure
all of the unique selling points which your high demand market is the emergence on the right deal environment being I received the best price and also to find the
business has :- For example, do you have a of shorter, leaner deal completion times. created by your broker during the sale right buyer that I felt comfortable handing
process. Those who sell direct and my business over to.”
do not create a competitive bidding
environment do not often benefit from
the maximum “value” which can be
created by running a professional deal
process.
5
CASE STUDY: REDWOODS DOWLING KERR - 2019
PROJECT VIRTUE - A GROUP OF FIVE
SUCCESSFUL CHILDREN’S DAY NURSERIES
THE VENDORS’ PERSPECTIVE
With a history of teaching in mainstream and be very proud of what me and my the start”, giving an insight into when she
schools, Natalie Johnson decided to family have achieved.” first consulted the expertise of Redwoods
consult the proven expertise of Redwoods Dowling and established the first of her
Dowling Kerr to help realise her dream of Admitting that it was an “emotional many successful childcare settings.
owning a successful nursery. Now 10 years decision” to put the dream she has “when we bought it we were very aware of
later Natalie has spectacularly exceeded endeavoured to realise over the past everything, it was all very new to me back
her ambitions, magnificently running 5 decade onto the market, Natalie then, I had never dealt with solicitors or the
childcare settings each with a brilliant appreciated that acquiring all 5 of her bank in that way and even then, you were
reputation. After deciding to put her highly regarded nurseries, rated “Good” and guiding me through it and advising me
illustrious nursery group onto the market, “Outstanding” by Ofsted, simultaneously what the next steps would be.”
Natalie once again turned to leading whilst upholding the meticulous standards
childcare brokers Redwoods Dowling Kerr. upon which they were founded would be Returning a decade later to sell her now
a daunting task for many within the sector. prestigious childcare group of 5 nurseries,
“Just to drive through and see the settings “Having them for 10 years and building Natalie details the professionalism and
and say, ‘I started that and it’s still going them up from scratch, it wasn’t something conduct that made Redwoods Dowling
strong’ will be nice to see,” Natalie shares, that I just wanted to sit back on and see Kerr the obvious choice. “I wanted it to be
reflecting on life after the sale of her 5 if it worked, she says when detailing the valued by Redwoods and other agencies,
childcare settings and the legacy she has calibre of buyer she believed would be but Redwoods know nurseries inside out
established within them. integral for the future success of the group, and I feel like you specialise in that and I
“I would rather it go to a high-quality group wanted that specialist approach… when I
“I put everything into it for ten years”, she and see the group continue to flourish.” decided to sell the group I just wanted it
says when describing how she worked to to be sold, not on the market for two years,
establish the success of her nursery group. Having bought through Redwoods I just wanted closure, I had made that
“The dream was to get one setting to Dowling Kerr previously to acquire her decision.”
outstanding, but I feel like I have exceeded first setting, Cheeky Monkeys Day Nursery,
my dream, I wanted to go out on a high Natalie shares, “you were very honest from
NATALIE DETAILS THE PROFESSIONALISM AND
CONDUCT THAT MADE REDWOODS DOWLING KERR
THE OBVIOUS CHOICE.
THE COMPLETE CHILDCARE BROKER
6
CASE STUDY: REDWOODS DOWLING KERR - 2019
PROJECT VIRTUE - A GROUP OF FIVE
SUCCESSFUL CHILDREN’S DAY NURSERIES
THE VENDORS’ PERSPECTIVE
Commenting on the early support she “I was asking Jenna what she would do in Detailing how essential the professional
received from Associate Director Mathew certain situations and she was able to give conduct of Redwoods Dowling Kerr was in
Parkinson Natalie comments “Mathew was me advice on how to proceed…She has the success of the sale, Natalie comments,
great,” when discussing how her business helped me so much, she was constantly “I think that without yourselves both of the
was appraised, “I thought that you just put going backwards and forwards. I think that parties would pull out of the deal… you
a price on it, but he was assuring me that the buyers, Kids Planet trust Jenna as well. need that person in the middle… If not
‘no we want to get you the best price so it She had so much work to do as she was then I don’t think that the deal would have
should go onto the market as offers invited’, getting it from both barrels.” gone ahead.”
I think what he did in that respect was
really good, it helped us to achieve a price “Jenna has been fantastic throughout, and
far beyond what we had anticipated.” we couldn’t have done it without her”,
Natalie says with clear appreciation for
Clearly showing her confidence and belief Jenna’s persistence, humility and unbound
in Redwood’s Director of Childcare & professionalism throughout the sales
Education, Jenna Caldwell, Natalie says, process. “There have been a few times
“She is strong and confident and told me where I have been on the phone crying to
to hold out on this and I trusted her and Jenna asking if I have done the right thing
a lot of the time I would ask her what and she has always been there to help
she thought, I listened to Jenna’s advice me through that, she has got so much
and she was always right in what she was experience from people going through the
telling me to do”. same, she has just been fantastic.”
“We wanted the best price for it and Jenna
understood that, she knew how much
these settings meant to me and we
didn’t just want to give them away,” she by JENNA CALDWELL
continues, I think that Jenna did a fantastic Director of Childcare & Education
job.”
REDWOODS DOWLING KERR
T: 01772 775 763
M: 07525 592988
E: jenna.caldwell@redwoodsdk.com
Redwoods Dowling Kerr
For more information visit redwoodsdk.com @RedwoodsDK
7
WHY SHOULD YOU WORK WITH THE RIGHT BUSINESS BROKER?
by ROBERT YATES
Head of Sales
MARKET EXPERTISE AND CONFIDENTIAL, TARGETED
NEGOTIATING EXPERIENCE MARKETING TO QUALIFIED BUYERS
“Deciding to sell your When you choose which have been built up Your business broker • a detailed Information
Redwoods Dowling Kerr as over more than 30 years of should be able to provide Memorandum
business is an important your business broker, we selling childcare businesses. persuasive, targeted presenting and
and often daunting work solely for you. marketing which highlighting your
We work to ensure the price emphasises the value business opportunity
decision. Given the Our job is to get you the agreed is crystallised upon of your business and to qualified buyers
options available, best possible deal and to completion. highlights your opportunity who have signed a
find you the right buyer. to qualified buyers. At nondisclosure agreement
knowing the next Redwoods Dowling Kerr we • a full negotiating and
steps to take can seem We achieve this through do this using a combination support service where
our market knowledge and of campaigns in print,
confusing. negotiating experience online and via direct
you are guided through
the sale process to the
approaches where relevant completion of your deal.
Many people may not to ensure that your business
is seen by the right buyers. This process not only
consider using a broker means interested parties
at first, but using the As an example our get to view your business
Corporate Sales service is in its best possible light,
right broker, with a premium sales process but that confidentiality is
extensive Childcare/ offering: maintained.
• a confidential teaser
client experience, will campaign outlining Confidentiality is imperative
add real value to the sale the key selling points of to a lot of vendors, as it can
process and increase your business and the be stressful worrying about
opportunity which exists the effect of staff, suppliers
your chances of a WE ARE THE ONLY for the right buyer and clients finding out
successful outcome.”
BROKER TO OFFER A • a researched buyer list that your business is on the
targeting active buyers market for sale.
“WHOLE OF MARKET • a managed marketing
APPROACH” FOR THE
plan approaching active
buyer’s
CHILDCARE SECTOR
8
SOLD
Holly House Day Nursery
Manchester
Redwoods Dowling Kerr helps buyer make first
acquisition with established day nursery in
MAXIMISING VALUE Manchester.
With a capacity of 92 children, Holly House Day
Most importantly for vendors, Our buyers range from Nursery provided quality care for children aged 3
choosing a broker means Large Corporate Operators months to 5 years of age as well as also providing
achieving a high-value sale to regional players; Private a popular before, after school and holiday
and the right buyer is far Equity Houses to High Net club boasting a popular afterschool club. The
more likely than going it Worth Investors; and growing settings renowned levels of care helped establish
alone. For most people, operators to first time buyers a brilliant reputation, with regular referrals,
recommendations and a “Good” rating on the
selling your business is a once or new entrants to the sector.
last Ofsted inspection best reflecting their quality
in a lifetime experience and childcare service.
for some it is a journey into Above all we take pride in
the unknown. By selecting delivering the best deal The nursery received offers on the back of each
the right broker, you can possible for our clients. of its two viewings, with the successful bid being
be confident you have the made by first time buyers Darren and Clare Nash.
required knowledge, skills Contact us today for an Leaving their careers in education behind, the
new owners acquired the business in hopes
and experience working on informal discussion about
of applying their educational background to a
your behalf to achieve the how we can maximise the business venture of their own.
successful outcome you value of your sale.
desire. Delighted with the sale, Vendor Sue Ebsworth
said;
We are the only broker to Call Robert Yates on ““I found the service standard of Redwoods
offer a “whole of market 0844 7011 819 or email Dowling Kerr to be excellent, extremely efficient
approach” for the childcare Robert.Yates@redwoodsdk.com and very pro-active.”
sector and as such our sales “Sarah Ellison was supportive and positive at all
range from large groups to times.”
smaller scale operations and “From start to finish she kept me informed of
settings. every step and instructions are clear and precise.”
“I would certainly recommend Redwoods
Dowling Kerr.”
9
SOLD SOLD SOLD SOLD
Fernhurst Court Children’s The Pied Piper Day Fawley Independent Day Abbey Nurseries Limited
Nursery Nursery Nursery
Blackburn West Yorkshire Hampshire North Yorkshire
Poppy & Jacks Limited acquire 9th childcare The Pied Piper Day Nursery and Out of School Fawley Independent Day Nursery SOLD by Abbey Nurseries Limited sold by Redwoods
setting through Redwoods Dowling Kerr. Club SOLD by Redwoods Dowling Kerr. Redwoods Dowling Kerr. Dowling Kerr.
Successfully operating within the community Successfully operating for over two decades, With a capacity of 60Greater
children up to the age
Manchester Redwoods Dowling Kerr is delighted to
for the last fifteen years, throughout this the Pied Piper Out of School Club has been of 5 years old, the setting achieved a “Good” announce the sale of Abbey Fields Day Nursery
time Fernhurst Court Children’s Nursery has consistently commended by Ofsted for the rating upon the most recent Ofsted inspection, & Abbey Place Day Nursery. First established
cultivated a reputation as an exemplary provider children’s strong bond with staff, effective whilst the stimulating environment created in 1991 Abbey Fields Day Nursery has since
of quality childcare, going on to earn an Ofsted safeguarding measures and the development of for children and the rate of each child’s cultivated an outstanding reputation within
rating of “Outstanding” after the settings most each child, earning the business a “Good” rating development being held in high regards. the community due to its high standards of
recent inspection. upon its most recent inspection. Park Avenue Day Nursery in Sale, care provided to its 58 children. The settings
Greater
Once on the market with Redwoods Dowling
Manchester was sold to Ms whorenowned levels of care are reflected through
had previously
Fernhurst Court Children’s Nursery now joins 8 Once on the market, the business received great Kerr, Fawley Independent Day Nursery received
purchased a childcare businessthe from regular referrals the business enjoyed,
other prestigious childcare settings after being amounts of interest with over 20 viewings, with an offer after only 4 viewings. Having successfully alongside the “Good” Ofsted rating awarded
Redwoods Dowling Kerr.
acquired by family group, Poppy & Jacks Limited. multiple offers being made on the back of this acquired the business, Woodberry Nursery upon its most recent inspection.
With over 20 years’ experience within the sector and the successful bid was made by Minnanjey Group plans to draw upon its 20 years of
Redwoods Dowling Kerr contacted the owner
and opening her first setting in 2009, Sarah Daycare Limited. After trading within the experience within the sector to build upon the The nursery group was put onto the market
of Park Avenue Day Nursery, Mrs, who wished
Bellamy of Poppy & Jacks Limited says she was Leeds area for 3 years, the childcare group was existing success of their new Fawley setting. due to the vendors wish to retire. Once the
to discuss the sale of her nursery so she could
attracted to the opportunity due to Fernhurst looking to expand and became attracted to the opportunity was hosted with Redwoods
pursue opportunities
Praising the efficiency of Negotiator Karrina, outside of the childcare
Court’s reputation and location and now opportunity after realising its potential through Dowling Kerr it attracted 6 viewings, receiving 2
sector.
Shane Beauchamp of Woodberry Day Nursery
plans to continue the illustrious success of the its size and idyllic location. offers as a result.
previous proprietors. Limited said;
Delighted with the efficiency of the sale, Experienced buyer, Ms, had previously Vendors Mr & Mrs Thomson said;
Delighted with the ease of her latest Vendors Julie Pearson and Ian Blenkin shared; “We can’t thank Karrina and the team
purchased at
a childcare business“Sarah
through has been very professional, helpful and
acquisition buyer Sarah Bellamy of Poppy & Redwoods Dowling Kerr enough.
Redwoods KarrinaKerr
Dowling has 2015 and has an
sympathetic to our needs throughout the whole
Jacks Limited commented; “Sarah Ellison has kept the whole process on provided a highly efficient and professional
established reputation in the childcare
process.” sector
track. She and her team are always professional, service throughout. Acquisitions
with numerous can years
be complex
of experience of managing
“I always really enjoy working with Sarah and all friendly and approachable.” but Karrina’s attentiveness has made the
nurseries. “The level of service has been high in all aspects.
the team on nursery purchases. Your honest and process as smooth as possible.” Sarah kept us informed of conversations with
supportive approach helps to remove the stress “The overall co-ordination has been excellent Park Avenue Day Nursery offers the our highest
lawyers and the buyers needs and questions.
out of any property purchase.” and her knowledge of childcare and leases has “Woodberry Day Nursery currently
quality owns and
of childcare She
and is situated inlistened to our requests, needs and
a densely
helped us to navigate throughout the whole manages 3 thriving children’s
populated day nurseries
area in accessnegotiated
with easy to and from well on our behalf and yet being fair
“It’s very exciting to have added Fernhurst Court process.” Hampshire, with a fourth
mainbeing
roadsbuilt. Alwaystransportto
and public the As
links. buyer.”
a result,
to the Poppy & Jack’s team and we wouldn’t on the lookout for antheexciting
nurseryopportunity to
has had long-standing success,
hesitate to recommend both you and the team.” “We would definitely recommend RKD and deliver high-quality care and education to our “We were very happy that our buyer, that Sarah
cannot thank Sarah enough for her support.” which looks set to continue.
community, we hope to be clients of Redwoods found for us, was very easy to deal with and still
Dowling Kerr again in the near future.” is during this handover period.”
10Targeting potential Childcare buyers from around the globe
Autumn/Winter 2019
DubaiGLOBAL CHILDCARE PROPERTY REPORT UK EDITION - 2019
SELECTION OF SOLD CORPORATE SALES
PROJECT Enchanted Forest Nursery Group PROJECT ICP Nurseries Limited acquire
GREYFOX SOLD by Redwoods Dowling Kerr ELEANOR Orchard Barns nursery group via
Redwoods Dowling Kerr
Project Greyfox - Bertram Nurseries Limited Project Eleanor - The Orchard Barns Group
Scotland Essex
Bertram Nurseries Limited acquire Enchanted Forest Nursery Group via Redwoods Dowling Kerr. Redwoods Dowling Kerr announce the sale of two successful nurseries in Colchester, Essex.
Bertram Nurseries Limited have acquired a group of award winning and well-established nurseries, The Orchard Barns Nursery Group has been providing excellent care for children since 1995 when it
Enchanted Forest Nursery Group, a portfolio of 5, day care settings located across Glasgow, Scotland was established by Mr & Mrs Huckle. They opened their first setting within the grounds of their family
on a leasehold basis. home and as a result of the immediate success the second setting was opened in Stratford St Mary
in 2000. As an additional testament to the exemplary care the Orchard Barns Group provides the
With the acquisition, Bertram Nurseries Limited now possess a total of 41 settings, with the incredible settings have been awarded national ‘nursery of the year’ and ‘most exceptional Childcare provision in
standards of care provided being demonstrated by not only the consistently near perfect online Essex.
reviews they receive from parents, but the numerous settings sited as being within the top 20
nurseries in Scotland, alongside the various “Outstanding” ratings awarded by Ofsted. The consistent development of every aspect of each setting saw the group grow to a combined
capacity of 107 with an Ofsted rating of Outstanding and Good.
The nursery group was first established by Mariessa & Bernie Devlin in 2006 and has a combined Attracted to the business by its passionate staff, their professional conduct and the warm and loving,
capacity for 405 children. Named as the “Nursery Group of the Year” in the 2016 NMT awards, the home from home environment they have created, ICP Nurseries Limited have now enhanced their
Enchanted Forest nursery group have established their pedigree through practicing a curriculum existing portfolio - to an impressive total of 31 settings.”
of “excellence and building ambition”, working to enrich and promote the individual development of
each child. Pleased with the ease of the sales process, Tracey Storey, CEO of ICP Nurseries shared;
Delighted with the sales completion the Delvin’s commented; “We are extremely excited to have acquired the outstanding Orchard Barns nursery group. Both
nurseries operate in very premium locations, have fantastic, long earned, reputations, exceptional
“We have had the pleasure of knowing Redwoods Dowling Kerr and in particular Jenna Caldwell for staff, and a dedication to the very best childcare in the local community. ICP Nurseries’ strategy is to
many years through her work in the Early Years sector. Redwoods Dowling Kerr bring to the sector, acquire the very best nurseries in affluent areas of London and the South East, and Orchard Barns is
highly competent knowledge of the early years market coupled with a persistent desire to support a great example of our ambition. Thank you to Jenna Caldwell and her team at Redwoods Dowling
both buyers and sellers. Over the years, they have provided us with sector specific advice and at all Kerr, who, through their professionalism and expertise, facilitated a very smooth and streamlined
times their guidance has come from a place of honesty and transparency.” process throughout.”
12SELECTION OF SOLD CORPORATE SALES
“Outstanding” childcare Early Years Storal Learning Limited acquire The
setting sold by Redwoods Dowling Willow Tree Nursery via Redwoods
Kerr Dowling Kerr
Project Greyson - Little Bunnies Project Elizabeth - The Willow Tree Nursery
Norfolk Clacton-on-Sea
First time buyer acquires exceptional childcare setting in Norfolk. Redwoods Dowling Kerr are delighted to announce the sale of The Willow Tree Nursery in
Clacton-on-Sea, Essex.
Established in 2005 by Donna Jarvis to meet the increasing demand for quality flexible childcare
within the area, Little Bunnies boasts an impressive turnover in excess of £400k, whilst consistently The nursery was opened by Brenda Farquhar & Christina Hart in 1988 from a modular building on the
operating at 80%-90% of its capacity. current site with a capacity for just 24 children. With continual investment and expansion, the nursery
now has an impressive capacity for 143 children.
Sited as providing “exceptionally warm and affectionate care”, the incredibly high standards Little
Bunnies provides is reflected through its “Outstanding” rating by Ofsted upon its most recent
The Willow Tree nursery provides an excellent standard of care and education for children aged from
inspection in 2016, with the constant development of staff and their relationship with parents being
3 months to 12 years which is proven by their second consecutive ‘Outstanding’ Ofsted rating.
highly commended.
With the business going onto the market with Redwoods Dowling Kerr as the vendor wished The successful bidders were Storal Learning Limited who were immediately attracted to the nursery
to pursue other business interests, Little Bunnies received an offer after only 2 viewings, with the for its reputation for high quality.
successful bid being made by Miss Sian Dawson. After holding experience as a NAMCW qualified
nanny, Sian made the step of acquiring her first business after being attracted to the setting by its The Vendors Christina and Brenda made their appreciation clear saying:
reputation and its standing with accrediting body Ofsted.
“We did it and we are no longer the owners. It was very emotional last night saying goodbye.”
Delighted with the sale of her business, Vendor Donna Jarvis shared;
“We want to say a huge thank you for all of your support along the way.”
“The level of service from you Sarah was very good I don’t quite know how between us with all the
problems that arose we actually achieved a sale.” “You probably don’t realise just how reassuring your phone calls were.”
“Thank you, Sarah, for all your hard work, somehow you held all sides together and their solicitors.” “Thank you to Sarah Ellison and the whole Redwoods Dowling Kerr team for introducing us to such an
The feeling on completion was utter relief nothing more than that!” exceptional nursery and team. They were instrumental and very helpful throughout the deal process.”
13GLOBAL CHILDCARE PROPERTY REPORT UK EDITION - 2019
SELECTION OF PROJECTS FOR SALE
Project
Mia
Project Asha Project Porter Project Freddie Project Mia Project Dandelion Project Rowan
Cheshire Buckinghamshire Yorkshire Bedfordshire Lincolnshire Wiltshire
Offers invited in the region of Offers are invited for the Offers invited in the region of Offers invited in the region of Offers invited Offers invited in the region of
£3m group £830k £2.25m Freehold £1.35m
Freehold Leasehold A Group A Group Ref: 47242 Freehold
Ref: 47220 Ref: 47280 Ref: 45908 Ref: 47173 Ref: 46360
Combined turnover of £1.317m Income of £1.1m for the year Two outstanding nurseries Income of £831k for the year Income of £541k for the year
Turnover of £842k for the year
for the year ending April 2018 ending December 2018 with with a combined capacity for ending June 2018 with an ending December 2018 with
ending September 2018 with
with and adjusted EBITDA of and adjusted EBITDA of £304k. 94 children. adjusted EBITDA of £336k. projection £600k December
an adjusted EBITDA of £239k.
£475k. A group of 3 first day nurseries ubstantial underpinning of
S Excellent nursery with a 2019.
Well-maintained children’s
day nursery with a capacity well-established group of 3
A with a combined capacity for value with around £1.6m of phenomenal reputation. Detached purpose built day
for 113 children. children’s day nurseries with 154 children. freehold property value. Capacity for 82 children. nursery with capacity for 63
a combined capacity for 175 Excellent inside and outside children.
Consistently operates at Freehold & leasehold options Exceptional management
children. space. Robust organisational
approximately 90% occupancy available. structure in place, supported
levels Excellent leasehold properties Ideally situated in a popular by high calibre nursery structure and team of
Robust organisation structure
with superb outdoor areas. residential areas of Luton practitioners and the extensive dedicated and highly qualified
Exceptional opportunity for with experienced & long
Excellent experienced within a strong catchment knowledge they hold. staff.
expansion and growth of standing management team
profits. management structure across area. Potential to increase capacity
Rated ‘Outstanding’ by
all three settings. Rated ‘Outstanding’ by and income.
Rated ‘Outstanding’ by Rated ‘Outstanding’ by Ofsted
Ofsted
Ofsted Rated ‘Outstanding’ by Ofsted Rated ‘Good’ by Ofsted
Ofsted
14EXIT PLANNING
If you want to discuss your exit
requirements then we would be
delighted to visit you in confidence to
discuss the options available.
Contact Robert Yates on 0844 7011 819
email Robert.Yates@redwoodsdk.com
WE ARE THE
ONLY BROKER TO
OFFER A “WHOLE
OF MARKET
APPROACH” FOR
THE CHILDCARE
SECTOR.
15Contact us to find out more about our complete REDWOODS DOWLING KERR
Redwoods Dowling Kerr are the
Childcare business brokering service. complete childcare business broker.
From large groups to single settings,
To buy: Call Jenna Caldwell, Sarah Ellison, we sell more childcare businesses
than any other broker.
Karrina Lee, Natasha Satterthwaite & Kim Emsley
or any of the childcare team on 01772 775 780 or email
Childcare@redwoodsdk.com
To sell: Call Robert Yates on 0844 7011 819
or email Robert.Yates@redwoodsdk.com
Or visit the UK’s fastest growing business broker website
www.redwoodsdk.com/childcare
POWE R E D BY
.co.uk
THE COMPLETE CHILDCARE BROKERYou can also read
