YouTube Link: Timing is Everything: When to Put Your Nursery on the Market
When Is the Right Time to Sell Your Day Nursery?
Selling your nursery is both a professional and personal decision. Whether you’re looking to retire, invest elsewhere, or simply take the next step, timing can play a critical role in maximising your return and ensuring a smooth transition.
One of the most common questions we’re asked is:
“When is the best time of year to sell my nursery?”
Let’s explore both the calendar timing and the strategic planning involved in successfully listing your nursery for sale.
Market Timing vs Personal Timing
From a market perspective, there are only a few times during the year when activity noticeably slows — and one of those is August. With many operators and investors taking well-deserved breaks and occupancy rates typically dipping during the summer holidays, August is generally less effective for launching a listing or attracting active buyers. Even year-round settings experience a lull in engagement during this time.
However, aside from August, most months are viable for launching a sale, with some proving more opportunistic than others:
• January: Many buyers return from the holidays with fresh ambitions and renewed budgets. Acquisition teams often begin executing their pipeline and acquisition strategies in Q1.
• April: The start of the financial year offers new budget allocations and clearer forecasting. Buyers are often actively pursuing deals during this time.
• September: With the educational sector entering a new academic cycle, this month often acts as a “second January” — another reset point where both buyers and sellers revisit strategic goals.
Understanding Your Own Exit Timeline
While market timing is important, the best time to sell your day nursery is when it aligns with your personal and financial goals. Whether you’re working toward a specific milestone — such as retirement, relocation, or even a significant birthday — the sale process must be reverse-engineered from your desired handover date.
Selling a nursery can take longer than anticipated, especially when factoring in:
• Buyer qualification and property search
• Legal tenure reviews and financial due diligence
• Ofsted registration transfers and other regulatory notifications
• Agreeing on Heads of Terms and working through a transition period
• Preparing and distributing high-quality marketing materials
It’s crucial to work with your professional advisors and brokers early to determine how long it might take to achieve an expert valuation, attract the right buyer, and reach completion.
Planning ahead ensures that the nursery is marketed at the right time, at the right price, and in the right condition — with consideration given to both freehold commercial value and goodwill nursery valuation.
Calendar Considerations and Tax Planning
While the idea of completing at the end of the financial year may sound ideal, in reality, completions occur year-round. Modern funding and legal processes allow for mid-year completions with funds securely held and transferred. However, it’s always advisable to consult your accountant to determine if a specific completion window could benefit your tax position — whether through capital gains planning or reinvestment timing.
It’s worth noting that external factors — including buyer delays, finance issues, or third-party inspections — can stall even the most carefully timed transactions. Every deal encounters challenges. It’s how you and your team handle those hurdles that determines the outcome.
How to Prepare for a Smooth Exit
To increase the likelihood of a successful, timely sale, we recommend the following steps:
• Start early: Even if you’re not quite ready to list, begin preparing your financial data, reviewing property tenure (freehold/leasehold/lease assignment), and updating legal documentation.
• Seek an expert valuation: Ensure your pricing reflects market trends using benchmarking, net profit multiples, and a formal RICS Valuation (Royal Institution of Chartered Surveyors) if required.
• Address pre-sale improvements: Boost your day nursery’s valuation by tackling necessary compliance updates, fixed asset repairs, or enhancing your Ofsted rating where possible.
• Coordinate with your professional advisors: From solicitors to accountants and brokers, surround yourself with experienced professionals who understand nursery sales and can guide you through the due diligence process.
Final Thoughts
While there are certainly strategic windows in the year that align with buyer activity, the right time to sell your nursery depends largely on your goals, timelines, and level of preparation. With careful planning, a clear exit strategy, and support from trusted advisors, you can position your nursery for a successful sale — at any time of year.
Ready to Take the First Step?
If you’re considering selling your day nursery, we’re here to guide you from initial valuation through to successful completion. Whether you’re selling a part-time nursery, full daycare setting, or even an after-school club, our team offers tailored advice backed by experience, data, and strategic marketing.
Contact us today for a confidential, no-obligation consultation — and let’s begin planning your next chapter.
