Nursery & Childcare Valuation
Discover what your nursery or childcare business could be worth today
Typical Valuation for a Nurseries & Childcare Business
| Metric | Typical Range |
|---|---|
| EBITDA Multiple | 3.5-5.5× |
| EBITDA Margin | 15-30% |
Market Overview
Nurseries and childcare settings typically sell for 3.5-5.5× EBITDA in the UK market, though property value can represent significant additional component for freehold facilities. The range reflects Ofsted rating, occupancy levels, funding mix, and quality of provision. Nurseries rated 'Good' or 'Outstanding' with high occupancy command premium multiples (4.5-5.5×) due to quality assurance and demand, while 'Requires Improvement' or low-occupancy settings trade lower (3.5-4.0×). Key differentiators include Ofsted rating (Outstanding/Good essential), occupancy levels (85%+ ideal), revenue mix (private vs funded places), qualified staff team (Level 3+, EYTS), property tenure (freehold adds value), and manager in place (not owner-run). Nursery consolidators and PE-backed groups actively acquire quality 'Good'/'Outstanding' settings.
How to Value a Nurseries & Childcare Business
The standard methodology for valuing a nurseries & childcare business in the UK is EBITDA-based. A buyer will calculate your Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) and apply a multiple based on sector benchmarks, business quality, and growth prospects. For nurseries & childcare businesses, that multiple typically ranges from 3.5-5.5×.
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