Day nursery valuations, independently prepared.

What the figure usually turns on

• Occupancy against registered places

  Occupancy is the single biggest driver. A setting running consistently above 85% of registered places, with a healthy waiting list in the under-twos, values very differently from one at 65% with spare capacity it can't fill.

• Funded-hours versus private-fee mix

  Government-funded hours are stable but thin-margin. Settings that can charge for consumables, extended hours and additional private sessions protect margin — and buyers pay for that margin, not for turnover.

• Ofsted rating

  Good or Outstanding is close to a prerequisite for a competitive multiple. Requires Improvement narrows the buyer pool to operators who back themselves to turn it around, and they price the risk in.

• Staffing, ratios and manager stability

  Payroll typically runs 55–65% of income. Ratio compliance, Level 3 qualified proportion, agency reliance and whether the manager is staying are all tested in diligence.

• Tenure and site

  Freehold sites attract property value on top of trading value. Leasehold value depends on remaining term, rent as a percentage of income, outdoor space and whether the registration can be increased.

Trading value and property value are not the same number

Where a nursery owns its site, two things are being valued at once: a childcare business and a building with an established use. Blending them into one multiple produces a figure that no lender will accept and no buyer will hold to.

We normalise earnings for a market-rate manager and true owner remuneration, value the trading business on maintainable EBITDA, and state any property interest separately with the basis explained.

Why independence matters here

Childcare is an active consolidation market and group buyers are experienced. Walking into that conversation with a free agent appraisal puts you at a disadvantage, because the other side knows exactly how those numbers are produced.

We take no sale fee and no commission. The report is written to be handed to the other side, to a bank, to HMRC or to a court.

This is for you if…

• —You're selling a nursery or fielding approaches from a group operator.
• —You're acquiring a setting and want the asking price independently tested.
• —You need a valuation for a share transfer, divorce, probate or HMRC submission.
• —You're refinancing or restructuring and need a defensible figure.