Published May 9, 2025 Written by NDNA

Contemplating the sale of your nursery business? Here’s what you need to consider

By Courteney Donaldson, Managing Director – Childcare & Education, Christie & Co

Owning and operating a day nursery business can be incredibly rewarding. Equally, though, there are times when it can be challenging, and you may wish to sell. In this article, Courteney Donaldson, Managing Director – Childcare & Education at Christie & Co, shares a list of top things for you to consider when planning an exit strategy.

As a day nursery owner, when all is going well, you may find yourself at a crossroads and question whether you should expand, acquire and grow your business.

But, when day-to-day operational challenges mount up, or the unexpected happens, you may decide you want to sell instead. Whether you’re considering this exit now or in five years, preparation is very important, so here are some key things you need to think about to maximise your chances of selling your business on the best possible terms to the best possible buyer.

Firstly, work out what you want from the sale by asking yourself the following questions:

Why might you want to sell and when? There are lots of reasons nursery business owners choose to sell their businesses, such as retirement, health reasons, or seeking a lifestyle change. Often business owners may have an idea of potential sale timeframes, but, occasionally, unexpected things can impact pre-planned timeframes. It’s important to know that there’s never a bad time to sell a good business.
What is the right price for you? You’ve worked hard to build your business so there’s every reason to get the best and highest value possible, but a key starting point is understanding what a buyer might pay for your business, and whether that price is at a level which would make a sale attractive to you.
Do you know everything you need to know? What price would be realistic for your nursery business? Will the sale be a share sale or an asset sale? The property that you trade from, is it held inside or outside of the company? If leasehold, is the lease assignable? What information will buyers require to acquire your business, and do you have that information to hand? How can you achieve the best possible price? What might a transaction timetable look like? How do you manage day-to-day business operations, while working through a sales process?
Do you understand the key issues? You need to start looking at your business from a buyer’s point of view. What are its pros and cons? What are comparable businesses selling for? Why would you be attracted to the business? You also need to start looking for smart professionals whose selling expertise and services you can depend on as who you know and what you know can make all the difference.
Is finance forcing your hand? Maybe you’re considering selling because you feel it’s the best financial option. If you need funds to make positive changes to your business, then refinancing could be something to explore.

Once you’ve worked out what you want from your sale, here’s what to think about next:

Start preparing your business for sale. By getting all your financial and legal paperwork in order now, you can save a lot of time later. It also creates a more ‘watertight’ case for facts and figures. Momentum is everything when it comes to negotiating a deal and following that, through a buyer’s due diligence process, to a successful completion.
Consult with your professional advisers. Professionally prepared material can result in a higher price for you, plus a greater likelihood of finance (i.e. a mortgage or loan) for the buyer, and a quicker transaction timeline for all parties. Your accountant should be able to help you with the collation of key financial data such as management accounts – historic and forward-looking. Consider your tax position pre- and post-sale, too, and the best structure for a sale, be that via a share or an asset sale. Ensure that the liabilities you’ll incur don’t make it impossible for you to sell the business. Your solicitor can also advise you on any ongoing legal issues that may need clarifying or resolving (e.g. planning permission).
Make your business look more attractive to buyers. This sounds like common sense, but many sellers overlook small improvements that can make a big difference in generating interest in the business and the ultimate selling price. A wisely invested £5,000 at this stage could repay itself several times over.
Appoint a trusted sales agent. This is key to getting the very best possible deal terms and also successfully progressing a sale from the offer to the completion stage. Don’t be swayed by bargain fees, an agent who puts the biggest price tag on your business, or any agent who asks for a sizeable sum upfront. Choose a business agent with specialist experience in day nursery sales who understands the nuances of the sector. Appointing them based on integrity, experience, and honesty is what gets results.
Do you require confidential or open marketing? Open marketing lets everyone know in advance, attracts attention and maximises interest, it also stimulates more competition from potential buyers which can push the price up and is a more certain way of ensuring a sale and often getting the best price. On the other hand, closed marketing is a way of minimising disruption to the business if staff members and suppliers are unaware of your plans to sell. As specialist nursery business brokers, around 90% of the nursery business sales that Christie & Co successfully completes each year are done so via a confidential sales process.

Before you ‘go to market’, here are some other things to remember:

Remember you’re in the spotlight. You and your business are on show. Don’t assume you can let your guard down when no viewings are expected. Serious buyers often act as ‘mystery shoppers’ under the guise of ‘prospective parents’ to get a true picture of your business in action. When you are facilitating arranged visits from selected potential purchasers, set aside plenty of time to show them around and sell the business to them.
Be thorough. Have books and records handy. Make sure everything is clean, tidy, and uncluttered. Think about what the viewer might ask, prepare your responses, and take the opportunity to ask them questions, too.
Be positive. Talk about your success. Sell your strengths. Recount examples of good early years practice, your links with parents and the community, and the ways you recruit and retain staff. Talk about your employees’ strengths, the unique selling points of your nursery to parents and what sets you apart from your competitors. Show them the investment you have made into your environment and resources and touch on opportunities for further business development.
Be honest. Don’t be afraid to tell them about challenges that you might be striving to overcome. Talk about your weaknesses as well as your strengths. It helps buyers to see scope for incremental improvements or refinements. The less that comes out of the woodwork later, the more likely you are to sell at the price you agree.

If you’re considering selling your nursery business and would like a confidential discussion about your options, get in touch with Courteney: [email protected] / +44 7831 099 985

Business

Contemplating the sale of your nursery business? Here’s what you need to consider

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