Giving Sophisticated Investors the Opportunity to Invest in Established Day Care Nurseries for a Consistent Return.
We Acquire Established Businesses with potential for considerable Growth
We intend to consistently acquire highly profitable established Day Care Nursery businesses with untapped potential for further growth of both profits and value.
Our target market are Nursery Businesses with a turnover above £500k, that have an experienced leadership team in situ and are ripe for improvement and growth. We then intend to invest in and support the management team and staff to enhance their ability to improve the experience of the clients
With most of the businesses we will acquire will intend to see an increase in profits by 50% within 6 months and 100% by 12 and as a result we aim to see an increase the value by 700%.
There are around 24,000 Day Care Nurseries in the UK and we want to acquire 25-40 over 3 years. Thats just 0.1-0.13% of the market.
We aim to acquire each Day Care Nursery business at 1- 1.5x EBITDA; the current fair price for individual businesses.
Once we have acquired the business, we intend to improve the service offered by the Nursery, enhance its local reputation, its profitability and value.
Once we have over 20 Nurseries in the Group, the value of each business should rise from 1-1.5x EBITDA to 7-8x EBITDA. That’s potentially a 700% increase on the original multiple. The reason for this is simple. Large companies, Pension Funds and Private Equity businesses love buying businesses when they reach this size and they are willing to pay high multiples for them.
We also aim to enhance the profits of each of the Nurseries we acquire.
Whilst he previous owners would have poured their lives into their businesses for 10 years plus they are typically only at best 50% as profitable as they should be.
By focusing on investing in and supporting the leadership team, the staff, improving the premises and by enhancing the experience for the children; the growth of the profits is almost inevitable. Our target increase in profits within 18 months per business is over 100%.
Finally, we intend to exit by selling our Nursery Group of stable and profitable businesses through either an IPO or acquisition at potentially 7-8x EBITDA. We aim to acquire 25-40 independent businesses over 36 months giving us a Group worth £85m-£120m.
As an investor you could benefit from this growth.
The Day Care sector is hugely fragmented with over 24,000 separate businesses. The vast majority are owned by their founders and over 30% of these will be retiring within 3 years.
Most Nurseries, whilst cherished and well run, have plenty of scope to improve and grow.
Why is the Nursery sector is typically an excellent investment?;
We will only acquire Day Care Nurseries with a track record of delivering excellence for over 5 years, with over £300k in turnover, that are profitable, where they have an OFSTED rating of Good or better and the Nursery are in areas of high density of people between 25-40. Therefore enhancing the probability of growth.
All our Nurseries are Well Managed and Supported by our Leadership Team
We intend to acquire businesses with their existing leadership teams to ensure they continue to run smoothly and to serve their loyal customers. Our Operations Lead and her team are ex OFSTED inspectors and consultants advising in this space for decades and are on call to support the leadership team to maximise their potential.
Whilst the previous owners are often dedicated to their business, as the fresh new owner we are able to invest in the nursery to ensure.
Our ownership should be like a breath of fresh air into the business.
We are dedicated to supporting the leadership team and staff of the Nursery and pledge that our people will love working with us to enhance the children’s enjoyment whilst they attend our Nursery.
We intent to only acquire highly profitable businesses with untapped potential for further growth and improvement.
Our target businesses have a turnover in excess of £500,000 and who have rock solid management in situ. We bring along a huge amount of support for the leadership team and staff to enhance their ability to improve the experience of the children and their families.
Most of the nurseries we will acquire are likely to experience an increase in profits over 50% within 6 months and 100% with 12.
The Nursery sector as a whole is growing because our population is growing that may increase demand and probably ensure long term profitability.
Once we have over 20 Nurseries in the Group, the value of each business should rise from 1-1.5x EBITDA to 7-8x EBITDA. That’s potentially a 700% increase on the original multiple.
Investing in established businesses involves risks, including illiquidity, lack of dividends, loss of investment and dilution, and it should be done only as part of a diversified portfolio. UK investor Hub is targeted exclusively at investors who are sufficiently sophisticated to understand these risks and make their own investment decisions. You may only invest via UK Investor Hub once you are registered as sufficiently sophisticated. Click here to read our full Risk Warning.
Unregulated investment opportunities in complex instruments are considered high risk. Therefore, we can only deal with investors who are High Net Worth Individuals or Sophisticated Investors, who understand the risks involved. If you do not meet these criteria, you must NOT take any further action and leave this site.
These investments are NOT covered by the Financial Services Compensation Scheme (FSCS) and clients will NOT have access to the Financial Ombudsman Service (FOS). All investors should seek independent professional advice before deciding to invest. Please read our full risk warning before deciding to invest.
Investing in non-readily realisable and/or non-transferrable securities (illiquid) involves high risks.
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