A closed day nursery located in Halifax has been sold by Redwoods Dowling Kerr after it received 10 competitive offers from different interested parties.

Registered for 56 children, the nursery operated from colour and vibrant rooms within a spacious and versatile property in a prominent residential location.

 Redwoods Dowling Kerr’s Jodie White, who handled the sale, said: “This nursery operated in the town for many years and established an excellent reputation. This was a first time purchase for a husband and wife team who had experience in childcare. It is a fantastic acquisition which is evidenced by the number of offers the business received.”

 The vendors had the following to say about RDK: “We were very pleased with the service we received. You have always responded promptly to any questions or requests for information and have provided clear and concise information.”

It’s hard to believe that we are already almost half way through 2013, and so much has happened within the sector since this time last year. Although change is part of life and in the main undoubtedly a good thing, I’m pleased to note that one thing within our sector has remained consistent: its resilience and strength. As Redwoods Dowling Kerr have commented previously, the sector continues to outperform expectations – at RDK we are selling more Nurseries, not less, than in previous years – and the future for Nursery sales looks incredibly positive. We have always been proud that our sector is innovative, adaptable and prepared to meet the challenges presented, and the first part of 2013 has been no exception.

As predicted by RDK previously, levels of corporate activity have increased significantly and this is driving demand in the market, something which is evidenced by Bright Horizons’ acquisition of Kidsunlimited in a £45m deal last month. The deal brings the Bright Horizons nursery portfolio in the UK to a total of 203 nurseries, with a capacity to provide care for around 15,500 children.  This is a shining example of the buoyancy in the sector and comes hot on the heels of Treetops Nurseries’ acquisition of the Toybox Nurseries portfolio. The Treetops deal was facilitated by Redwoods Dowling Kerr alongside the Altius Corporate Management team, Paul Miller and Andrew K Steen. We have worked closely with Treetops to understand the group’s strategic acquisition requirements and the type of settings which would provide a good overall fit. Treetops wished to extend their already impressive portfolio with nurseries that have an established reputation for excellence in Childcare with a strong team of staff already in place, that are well ran and which are synergistic geologically for the group. Redwoods Dowling Kerr and Altius Corporate researched the market and identified the Toybox nurseries as a strong strategic acquisition, and entered into discussions with the vendors who were receptive to our approach. Discussions progressed at a pace and thanks to the professionalism of all parties involved in the transaction the deal itself took less than six months to complete.

The acquisition is a strong strategic fit for Treetops and provides a superb opportunity, not only for growth but for Treetops to expand their existing portfolio with premier nurseries which have been run by the vendors to the highest standard, with fantastic staff training, facilities and quality throughout.

 David Hancock, Managing Director of Treetops Nurseries commented:

“Having RDK as one of our strategic partners has been a terrific help. RDK clearly understand what we look for in a potential acquisition, this enables us to focus on the right opportunity and get an outcome that will strengthen the Treetops brand”.

We now expect the latest corporate Bright Horizons and Treetops deals to spark activity along the wider acquisition chain and stimulate sales in 2013. Indeed, we are already in discussions with several more medium sized groups with regards to both acquisition and sales plans.

There have been other notable transitions within the market. We have noticed a trend whereby we are experiencing quick sales for Nurseries that are being marketed for less than £100,000, which are popular with first time buyers and new entrants to the sector. As an example, we recently sold a West Midlands Day Nursery within this price bracket, which sold for its asking price after receiving an offer just two weeks after coming to market.  In addition to this, contrary to expectation, under-performing nurseries can and do sell quickly: one such Nursery recently went from offer to exchange within three weeks, going on to complete within just six weeks.

Across the market Leasehold remains the most popular type of sale due to their affordability: 78% of RDK’s sales last year were either Leaseholds or Occupation Agreements. We are working with increasing numbers of vendors who are looking to lease their business and retain ownership of the bricks and mortar. This gives the vendor the benefit of realising the sale of the business whilst retaining an ongoing income with the option of freehold sale at some later point in the future. That said, Freehold sales are still at higher than anticipated levels; 22% of our sales last year were Freehold opportunities. Another point that is worth noting is the so-called ‘North South divide.’ It is a long standing belief that market sale activity in the South exceeds that in the North, but in fact our experience is that this is far from the case. In 2012, 36% of Redwoods Dowling Kerr’s sales were Southern sales, 34% were Northern sales, and 30% were sales in the Midlands. Consequently activity levels are strong nationwide. Interest has come from a wide selection of buyers in 2012 and the first portion of 2013, with a strong mix of new, existing and corporate buyers involved in deals. We have found that first time buyers are usually either professionals currently working within the childcare sector who now have the funding to enable them to invest, or people who are looking to invest from another sector, such as Care Home operators. Large groups continue to grow on the whole, although some are also rationalising the portfolios and choosing to sell off poorer performing units. There is also growth within the wider childcare sector, such as in Private Schools and specialist Children’s Homes.

We expect Nursery groups to continue to expand over the next year, particularly following the previously mentioned Treetops and Bright Horizons deals. Overall we expect activity levels to augment in 2013 with the increased buyer activity impacting across the full acquisition chain. For a number of years now, RDK has always maintained a message of positivity, whilst others have had a more pessimistic outlook, and we are delighted that we continue to be involved in deals which not only support, but emphasise the strength of our industry.

To speak with one of our Childcare experts about buying or selling a nursery, please call us on 0844 2488 325.

During a time where uncertainty seems to shroud our economy, Redwoods Dowling Kerr is delighted to announce the sales of both Castle View Care Home in Dudley, and Rigifa Home Care Services, based in Perth & Kinross in Scotland.

These sales follow RDK’s completions of The Croft Care in Lancashire, Holmesdale House in Sussex, and The Willow Care home in Worcestershire – all of which were recently sold in quick succession.

Castle View Care Home received multiple offers from different parties and was sold by Redwoods Dowling Kerr on behalf of an existing operator wishing to downsize their existing group of care homes. The business was purchased by Miss Kay Taylor and her business partner. Miss Taylor who is a registered nurse and health visitor commented:

“Thank you to Redwoods Dowling Kerr for all their help and support during our purchase of Castle View Residential Care Home over the last few months.

“Although RDK was involved in selling the property (and I am the buyer), the company has worked with me very closely during the last few months and together we have managed to resolve any problems to the satisfaction of all parties.

 “I cannot thank RDK enough for all their help and would recommend the company to anyone without hesitation. Hopefully, we can work together again soon.”

Redwoods Dowling Kerr’s Director of Sales, Lucie Wright, said:

 “Although this is the partnership’s first time at the helm of a care home, both buyers are experienced within the care sector which stood them in good stead when it came to securing financial backing. The more experience a buyer has, the more willing banks are to provide funding.”

Shortly after the sale of Castle View Care Home, Redwoods Dowling Kerr went on to sell Rigifa Home Care Services, the sale of which completed at the beginning of April. The Scottish domiciliary care provider was marketed using Redwoods Dowling Kerr’s confidential Information Memorandum process and received substantial interest, accepting an offer after just two months of marketing. Rigifa was sold to an existing provider, Mr. Arthur McClean, using a combination of funding and deferred payments. According to Mrs Wright: “It is key in this market to find unique solutions to the limited bank funding available, and the sale of Rigifa is a perfect example of how such obstacles can be overcome.”

Mrs Wright adds:

“Redwoods Dowling Kerr is delighted to have sold Rigifa Home Care Services and Castle View Care Home on behalf of our clients. We are equally pleased to confirm that we have enjoyed a strong first part of 2013 in terms of sales of care businesses, experiencing increasing traction in the domiciliary care market in particular. More and more existing care operators looking to expand their company’s offering are turning their interests towards domiciliary care.

“During these first five months of the year, Redwoods Dowling Kerr has experienced record numbers of enquiries and high levels of interest from buyers looking to purchase care offerings of all types, sizes and levels of registration. Castle View and Rigifa are just two of a significant proportion of our care businesses to attract offers and active interest.”

“Funding is available, although we advise speaking with a specialist care broker to ensure you receive the best financial advice and are aware of all deals available in the market place.”

If you are looking to buy or sell a care home, visit the RDK website by clicking here.

Redwoods Dowling Kerr is delighted to report that Chantrey House Nursery and Pre-School in Yorkshire has sold within just three months of the market with RDK, accepting an offer within just a few weeks.

The nursery operates from a well presented and valuable property in Sheffield which has tiered landscaped gardens, and boasts a growing annual fee income.

Currently registered for 45 children, Chantrey is a popular local choice for parents due to its excellent reputation for childcare and has been owned by the seller for 7 years.

During this time it has undergone a major transformation which included an extensive internal and external refurbishment programme. The purchaser of this fantastic opportunity, who prefers to remain anonymous, commented:

“RDK were very professional in their approach, they introduced us to a potential purchase understanding our requirements which matched perfectly. The purchase process was made easy with assistance of RDK and would not hesitate to ask them to assist in the future.”

RDK is pleased to announce the sale of Bright Futures Streatham, which sold within 5 months and accepted an offer within only a month of being on the market with Redwoods Dowling Kerr.

The nursery received 7 offers in total, all within days of each other from the result of a competitive bidding situation.

 The purchaser, Mrs Raza is an experienced buyer and current nursery director who is expanding her offering. The vendor, Mrs Lewis commented:

 “Redwoods Dowling Kerr was helpful and informative from the very first contact and our nursery sold very quickly.

Jodie White was in charge of our case and she got straight to work arranging viewings.

Jodie contacted us daily to give us feedback from potential buyers. Before long a deal was struck and the nursery sold!

We would like to say a massive thank you to Redwoods Dowling Kerr, and to Jodie with her very professional negotiation skills.

 Redwoods Dowling Kerr is definitely recommended!”

Redwoods Dowling Kerr is thrilled to have facilitated the sale of Daisy Chain Nursery, located in Yorkshire, on behalf of our client.

The thriving nursery provides care for children aged 3 months through to 5 years and also has a popular 20 place out of school club.

The business is well suited to an ambitious and energetic operative, and RDK found this in the buyer, Mrs Allison Lee, who has worked in childcare for almost 20 years.

Mrs Lee owns another successful nursery, has previously owned a play gym and holiday club, is a published children’s writer and also writes childcare courses for a distance learning college which she tutors online.

Mrs Lee commented:

 “Firstly may I thank you for all the work you have done. I can honestly say that I am absolutely thrilled and I am 100% certain that The Daisy Chain is the right nursery for me.

“Having purchased two nurseries in the last two and a half years I can honestly say that purchasing the second with the help of RDK has been by far the easiest.  My first nursery, purchased privately, took approximately 18 months from start to finish whereas with the help of RDK the second acquisition has taken a fraction of that time.

“The deal was struck within days and RDK were quick to get the wheels in motion, ironing out any minor problems, to ensure a smooth transaction. 

“During the final few days prior to completion RDK were constantly in touch, chasing up when needed and ensuring everyone was given the information required. 

“My negotiator  has been at the other end of the telephone for me whenever I needed her and I would not hesitate to use RDK again when I look for my next acquisition!”

Mickleover Montessori has become yet another nursery to be sold by RDK in a short space of time, accepting an offer in less than a month.

The successful Derbyshire nursery offers the highest standards of childcare and education, working alongside Early Years Foundation Stage Guidelines. RDK’s Lucie Wright, who handled the sale, calls the business “a fantastic opportunity to purchase a first class nursery with an enviable reputation and a bright future offering potential for growth and development.”

Mickleover was sold to Ms Jacqui Mason, who has 23 years of experience within the childcare sector. She commented:

 “Thank you to Lucie Wright at Redwoods Dowling Kerr for her energy and guidance with the acquisition of my first nursery.   Once Lucie knew that I was on the lookout for a new nursery she was consistently presenting possible purchase opportunities for my consideration.  Her management whilst negotiating the purchase was professional and her consistent communication reassuring.

When seeking my next acquisition RDK will definitely be my first point of call.”