When it comes to selling your day nursery, there’s one thing you can’t afford to skip—and that’s knowing exactly what your business is worth. Not a rough guess. Not a figure you’ve plucked from the sky. We’re talking about a proper, expert nursery valuation grounded in real financial data, net profit multiples, and solid benchmarking.
Too often, we see owners take their business to market with a number in mind that feels good… but doesn’t necessarily stack up. Maybe it’s based on what a friend sold for. Maybe it’s what you hope to walk away with. But if that figure isn’t supported by things like your EBITDA, occupancy rates, property tenure (freehold or leasehold), or Ofsted rating, it’s going to be a tough sell.
Buyers today are savvy. And they’re surrounded by professional advisors, bank requirements, and funding rules. If you’re pitching a price that isn’t supported by clear financial records or a formal RICS Valuation, things can unravel very quickly—especially once due diligence begins.
Let’s be clear: a valuation doesn’t mean you’re selling tomorrow.
In fact, many of our clients use annual nursery valuations as a benchmark. They’ve got an end-goal figure in mind and want to track progress year on year. Whether they’re planning to sell in two years, five years, or just want to understand how the business is performing, valuations keep you on the right path.
The Real Cost of Overpricing
There’s a real risk in marketing your business above its value. It can backfire—hard.
Here’s what happens: you list your day nursery for sale at an inflated price. The market responds with… silence. Buyers (and their lenders) look at your figures and decide it’s overpriced. You sit on the market. Time passes. And before you know it, someone comes in with an offer that’s two-thirds of your original ask—because you’ve lost leverage and momentum.
Worse still, if you’ve been on the market for months with no action, your business can become what we call a ‘stale listing’. You’re better off taking it off the market, working on those presale improvements, and revisiting your valuation once your numbers tell a stronger story.
What Should a Proper Nursery Valuation Include?
A robust day nursery valuation should factor in:
- Financial performance (turnover, net profit, EBITDA)
- Property tenure (freehold/leasehold)
- Fixed assets and goodwill nursery valuation
- Local authority funding arrangements
- Ofsted registration and rating
- Occupancy numbers and staff ratios
- Benchmarking against similar settings
- Any planned regulatory notifications
- Legal documentation and title
- Transition period planning
- Heads of Terms readiness
Whether you’re preparing for a full sale, considering listing your business for sale, or just want to know where you stand, it’s essential to work with expert advisors who understand this sector. They’ll help you interpret the figures, pinpoint areas to improve, and get your setting in shape for a smoother, more profitable sale—whenever that day comes.
Final Thought
Valuations aren’t just about price—they’re about strategy. Done right, they provide the clarity, confidence, and credibility you need to sell your day nursery at its true value.
And if you’re not quite there yet? No worries. The right valuation will show you how to get there.
