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Group of 4 nurseries - funding required

Reference
S11967
Turnover
£2m to £5m
Sector(s)
Education
Region(s)
South West England
Added
26 September 2024

Business description

Project Starlight 

Group of 4 Day Nurseries in South West England

Key Features of the Opportunity
A group of three nurseries, soon to expand into a fourth, all awarded a ‘Good’ rating by Ofsted as of 2024.
The demographic around all sites is attractive, with significant new house building projects planned or underway in each of the respective catchment areas.
Capacity - Current combined capacity for 338 children from six months to five years of age with potential to accept an additional 156 following various avenues of expansion.
Property - The business operates from three leasehold properties, having invested in a fourth to open late '25/early '26. All properties have long term leases.
Ofsted - All sites rated ‘Good’ by OFSTED with most recent inspection taking place in June 2024.

Quick Look at the Financials
Annual turnover for 2020 of £484k based on a combined capacity of 86 places
Annual turnover for 2021 of £822k based on a combined capacity of 86 places
Annual turnover for 2022 of £1.1m based on a combined capacity of 86 places
Annual turnover for 2023 of £1.9m based on a combined capacity of 338 places
Annual turnover for 2024 of £3.3m based on a combined capacity of 338 places
Projected turnover for 2025 of £4.6m based on a combined capacity of 366 places
Projected turnover for 2026 of £6.0m based on a combined capacity of 494 places
Projected turnover for 2027 of £7.0m based on a combined capacity of 494 places
Projected turnover for 2028 of £8.0m based on a combined capacity of 494 places

Process
The business is now looking to raise funds for the purpose of contributing to the next stages of the business’ growth and start repaying the start-up and development loans initially provided by shareholders.
Our clients are inviting existing Nursery Operators to express interest by Oct 14, after which detailed financial information, lease details and organisational charts, will be made available to a short list of bidders.

Interested bidders are advised to include the following information:
 The sum of the offered loan as well as the expected rate of interest required for the loan note.
 Any expected rate of interest regarding the loan note as well as prospective interest in purchasing available equity.
 Any other considerations that may be relevant.

BIDS INVITED
To include 4 leasehold properties

Interested in speaking with Us?
Jenna Caldwell on 01772 775 763
And quote ‘Project Starlight’ with reference no 51213

Highlights

Project Starlight 

Group of 4 Day Nurseries in South West England

Key Features of the Opportunity
A group of three nurseries, soon to expand into a fourth, all awarded a ‘Good’ rating by Ofsted as of 2024.
The demographic around all sites is attractive, with significant new house building projects planned or underway in each of the respective catchment areas.
Capacity - Current combined capacity for 338 children from six months to five years of age with potential to accept an additional 156 following various avenues of expansion.
Property - The business operates from three leasehold properties, having invested in a fourth to open late '25/early '26. All properties have long term leases.
Ofsted - All sites rated ‘Good’ by OFSTED with most recent inspection taking place in June 2024.

Quick Look at the Financials
Annual turnover for 2020 of £484k based on a combined capacity of 86 places
Annual turnover for 2021 of £822k based on a combined capacity of 86 places
Annual turnover for 2022 of £1.1m based on a combined capacity of 86 places
Annual turnover for 2023 of £1.9m based on a combined capacity of 338 places
Annual turnover for 2024 of £3.3m based on a combined capacity of 338 places
Projected turnover for 2025 of £4.6m based on a combined capacity of 366 places
Projected turnover for 2026 of £6.0m based on a combined capacity of 494 places
Projected turnover for 2027 of £7.0m based on a combined capacity of 494 places
Projected turnover for 2028 of £8.0m based on a combined capacity of 494 places

Process
The business is now looking to raise funds for the purpose of contributing to the next stages of the business’ growth and start repaying the start-up and development loans initially provided by shareholders.
Our clients are inviting existing Nursery Operators to express interest by Oct 14, after which detailed financial information, lease details and organisational charts, will be made available to a short list of bidders.

Interested bidders are advised to include the following information:
 The sum of the offered loan as well as the expected rate of interest required for the loan note.
 Any expected rate of interest regarding the loan note as well as prospective interest in purchasing available equity.
 Any other considerations that may be relevant.

BIDS INVITED
To include 4 leasehold properties

Financials

Turnover (£'000) Adjusted EBITDA (£'000)
2020 (Actual) 484 0
2021 (Actual) 822 0
2022 (Actual) 1,100 0
2023 (Actual) 1,900 0
2024 (Actual) 3,300 0

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