Christie + Co’s Business Outlook 2014 reports that the nursery sector ‘continued to attract suitors during 2013’ but that many operators were hindered by ‘continuing struggles with inspections’.
The company's director of childcare Courteney Donaldson says, ‘The increase in complaint-triggered inspections has created some uncertainty for nursery businesses, as going from Outstanding to Inadequate, or even Satisfactory, can have an affect on a nursery’s occupancy and revenue. Ultimately this could influence the price that a purchaser may be willing to pay, and in some cases a bank or investor's perception of the business, in terms of risk.
'As a result, some downgraded providers had to change their business sale strategies, while matters were addressed, in order to mitigate any concerns that purchasers may have had about the impact of the "downgrading" on the longer term performance of the business. This was particularly the case for those businesses at risk of losing free entitlement funding.'
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