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A guide to buying or selling a children’s nursery
Read time: 5 mins Added: 17/07/25
The UK childcare and education sector continues to be a resilient and attractive market, underpinned by strong demand, government-backed funding, and growing interest from investors. Whether you're looking to buy or sell a nursery, the process is complex and requires expert guidance. That’s why working with a specialist childcare broker is essential.
We’ve partnered with sector experts at Christie & Co to outline the key considerations and current market dynamics shaping the nursery sector.
Market snapshot: 2025 trends and insights
- The average price of day nurseries rose by 7.7% in 2024, with medium group portfolio sales increasing by over 10%.1
- There was a 36% increase in the number of offers received on nurseries for sale.2
- Investor appetite remains strong, driven by extended early years entitlement, ESG-focused investing, and demand for high-quality, larger-capacity settings.1
- 62% of providers surveyed plan to buy or sell in 2025, though 40% remain neutral about market sentiment, reflecting some uncertainty.1
Selling a childcare business: Step-by-step
1. Initial consultation
Your agent will assess your nursery’s market appeal and advise on pricing, buyer types, and sale structure (e.g. share vs. asset sale). The property status, whether it's freehold, leasehold, or long leasehold will also be discussed.
2. Formal engagement
A proposal will outline fees, timelines, and valuation rationale. Ensure the agent you meet will personally manage your sale to maintain continuity and expertise.
3. Preparing for market
An Information Memorandum is created, including photography, floor plans, and a virtual tour. This helps buyers assess suitability before arranging a visit.
4. Launching to market
Your nursery can be marketed confidentially or publicly. A shortlist of qualified buyers, with funding in place will be compiled to avoid delays.
5. Managing offers
Multiple offers are common. Your agent will manage a structured bidding process, often culminating in “best and final” offers, helping you choose the most suitable buyer.
6. Legal process begins
Once an offer is accepted, a Memorandum of Sale is issued, and solicitors and accountants begin their work. Choose professionals with childcare sector experience.
7. Due diligence
The buyer’s team will conduct a thorough review of your business. If bank funding is involved, an independent valuation will be required.
8. Ofsted registration
If selling a limited company, the process is typically a change of director. For asset sales, a full re-registration is required.
9. Exchange and completion
Contracts are exchanged, making the deal legally binding. Completion may follow immediately or shortly after, depending on the structure of the sale.
Buying a childcare business: What to consider
Assess your readiness
Owning a nursery is both a business and a responsibility. Build a CV that highlights your experience and vision - this also supports funding applications.
Understand your finances
Determine your budget, including your deposit and whether you’re targeting freehold or leasehold opportunities. Clarify how you’ll fund the purchase; through savings, investment, or borrowing.
Identify the right opportunity
Speak with specialist childcare agents who can match you with suitable businesses. You may need to sign a non-disclosure agreement (NDA) before accessing sensitive information.
Conduct thorough due diligence
Review operational and financial details carefully. Seek advice from solicitors and accountants with childcare experience to understand deal structures, tax implications, and legal requirements.
Build your support team
Surround yourself with trusted advisers. These should be brokers, legal professionals, and financial experts who understand the sector. Their guidance will be invaluable in ensuring a smooth and successful acquisition.
Looking ahead
The UK nursery market is expected to see continued consolidation, with medium and large groups actively seeking acquisition opportunities.2
Buyers are increasingly scrutinising parental demographics and local demand as part of their due diligence. Despite financial pressures such as rising National Insurance contributions and funding challenges, high-quality nursery settings in desirable locations continue to be in strong demand.