Let’s be honest—selling a day nursery isn’t something you do on a whim. Whether you’re planning an exit this year or just considering it for the future, one thing remains absolutely essential: you need to know what your nursery is actually worth.
Yet, time and again, we meet owners who go to market with a figure in mind that’s based more on emotion than evidence. It’s understandable—this is your business, your livelihood, maybe even your legacy. But putting a number on your nursery without a proper valuation is risky. In fact, it can undo years of hard work in a matter of months.
A professional nursery valuation goes far beyond surface-level figures. It brings together multiple elements of your business—financial data, occupancy trends, Ofsted ratings, funding arrangements and more—to calculate a fair market value. This isn’t just about EBITDA or turnover in isolation. A strong valuation assesses how your nursery performs compared to sector benchmarks, what kind of goodwill value it holds, and the current state of your freehold or leasehold commercial property. It also considers your staffing model, your local authority funding agreements, and your overall operational setup.
For buyers and their banks, this information is gold. Without it, the deal is already on shaky ground. These days, potential buyers are well-informed. They know what to look for, how to interpret financial records, and what a realistic return on investment looks like. If your asking price doesn’t hold up under scrutiny, whether through due diligence or loan assessment, the whole process can stall—or collapse altogether.
But here’s the thing: valuations aren’t just for those ready to sell. In fact, some of the most strategic nursery owners we work with aren’t even planning to exit yet. Instead, they use regular valuations as a performance checkpoint. They want to know how the business is doing, what the market is saying, and whether they’re on track to hit their future goals. By understanding the numbers now, they can make informed decisions that increase their setting’s value over time.
Sometimes that might mean addressing occupancy fluctuations. Sometimes it’s about boosting profitability, streamlining staffing, or focusing on presale improvements. Other times, it’s as simple as planning for the right legal and regulatory documentation to be in place so when the time comes, the business is sale-ready with minimal disruption.
What many people don’t realise is how much smoother a sale becomes when you’ve already done this work. When you understand the drivers behind your valuation and how they’re perceived by buyers and brokers, you’re in a stronger negotiating position. You won’t need to justify your asking price with vague statements. You’ll have the documentation, the performance indicators, and the professional insight to say, with confidence: “This is what my nursery is worth—and here’s why.”
Of course, having the right broker makes all the difference. The right advisor won’t just run the numbers and throw them into a document. They’ll sit down with you to go through the figures, explain what matters, and guide you through the decisions that will help you protect—and grow—your business’s value. They’ll make sure that marketing, listings, buyer qualification, and regulatory compliance all align to make your sale as efficient and successful as possible.
If you’re even thinking about selling your nursery—whether it’s five months or five years down the line—the smartest thing you can do right now is get a clear, expert-backed valuation. Because whether the answer is “yes, now’s the time” or “not quite yet,” you’ll be making decisions from a place of knowledge, not guesswork.
And when the time comes to put your business on the market, you won’t just be hoping for a good offer. You’ll be ready to earn it.
