^Nursery Acquisition Finance – Get Funding Now

With an asset purchase acquisition loan, lenders typically expect evidence of relevant childcare leadership or management experience, along with a consistent Ofsted history and trading record where applicable. Affordability is assessed using cashflow projections and bank statements, and the deal documents need to be clear on what is included, the purchase price and the seller’s completion terms. These facilities are commonly used for paying for assets, funding legal and valuation costs, and adding a working capital buffer to cover payroll and supplier commitments during early months.

Share purchase acquisition loans fund the purchase price for share transfer completion, and may also support transaction costs such as stamp duty depending on the deal structure. Lenders generally review the nursery company’s accounts, management accounts and cashflow quality, then assess whether the acquisition fits within sustainable servicing capacity. For multi-room or multi-site nurseries, scrutiny can increase where leasehold complexity affects risk. This option can preserve continuity of operating arrangements, staff structure and customer relationships, while still requiring robust underwriting of post-completion trading.

An acquisition + working capital top-up is designed for cases where the nursery needs immediate liquidity after completion, such as staffing costs, recruitment and early-stage supplier payments before income stabilises. Lenders typically look for evidence of current and forecast enrolment and fees performance, clear assumptions about childcare funding income timing, and a plan to safeguard payroll and supplier payments in the first months post-completion. The facility is often split, with the acquisition portion repaid over a longer term and the top-up portion potentially on a shorter tenure, helping match funding to real cash needs.