Sales of nurseries hit 'unprecedented levels'

Sales of day nurseries are seeing “unprecedented levels” due to economic uncertainty, spiralling utility costs, staff shortages and the nervousness of a recession on the horizon, according to a corporate lawyer specialising in nursery and care home transactions.

Helen Wong, senior consultant at Setfords Solicitors, has found “the number of seller mandates” is “on the increase”. She has revealed that “the day nursery market in the UK is experiencing an unprecedented level of deal activity with owners choosing to put their business up for sale post Covid-19.

“Deals have included the sale of nursery groups, as well as single-site operators and the demand is strong with bidding wars between buyers on numerous transactions.”

Ms Wong has attributed the rise to "economic uncertainty, spiralling utility costs, staff shortages and the nervousness of a recession on the horizon".

She said: “We would be pleased to assist any other nursery operators who are looking to exit as we are approached daily by all the big groups who have appetite to buy more day nurseries and continue their rapid expansion plans.”

Ms Wong and her legal team recently completed the sale of Waverton Day Nurseries in Merseyside to the fast growing nursery group, Kids Planet.

Tracey Jenkins, owner of Waverton Day Nurseries, said: “I’ve been exploring what my next stage in life might be and this felt that the time was right for myself and family to begin a new chapter and a much needed chance to pause and reflect on all I have achieved.

“Redwoods Dowling Kerr supported myself in identifying a buyer that had similar family values and qualities as my own nurseries and I felt that Kids Planet had a synergy that I could identify with.” Helen Wong called it a “momentous transaction” and added “a lifetime of their hard work has been protected by the sale to Kids Planet”.

“It is always hard to detach from a business which morphs into one’s life, but I’m glad Tracey sold on a high. It’s the right decision and I wish the family a very happy retirement.”