The day nursery market is growing rapidly, with new investors looking at it as an area of growth and group buyers purchasing nationwide. If as a purchaser you have the backing of an investment fund, or the boardof a large group, then they can see that multiples of EBITDA [earnings before interest, taxes, depreciation and amortisation] are going up, and will continue to do so, resulting in keen investment strategies.
The same can be said for existing owners who are looking to continue growth of a small group.
For first-time buyers, the money is not flowing as easily, and this is common in markets where consolidation is at the early stages. As the market continues to grow then more lenders will look towards the individual buyers as a growth area themselves. But we are not there yet, so if you are a first-time buyer, while there are lenders out there, be prepared to have to jump through some hoops to achieve finance.
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