Christie & Co, making predictions for the year ahead in its reportBusiness Outlook 2009, said that nurseries had experienced growingdemand for childcare, which had given them the opportunity to increaseoccupancy and revenue.
The report said that renewed confidence in the childcare sector had keptsale activity 'buoyant'.
Director Courteney Donaldson said, 'Throughout 2008, we witnessed a risein the number of people returning to work, in order to supplementhousehold income. This has not only boosted demand for childcare, it hasalso increased the sector's attractiveness to investors.
'The renewed enthusiasm from operators and investors was not limited tothe nursery sector. The appetite for various types of childcare,including specialist educational needs schools and foster care, wasstrong during 2008.'
The report said that mergers and acquisitions were 'particularlyfrenetic' in early 2008 as owners attempted to sell their businessesbefore the Capital Gains Tax changes took effect.
Although the number of larger multiple-site deals suffered during thelast six months of the year as banks tightened their lending criteria,Christie's said that there were sales of single sites or smallergroups.
The number of first-time buyers in the nursery market last year was alsoconsidered encouraging.
Ms Donaldson added, 'With the current economic climate set to remainchallenging, operators need to take a cautious approach to expandingtheir businesses. However, those who are able to secure funding and theright professional advice can take advantage of the opportunities thatwill continue to be generated in the childcare and education sectors in2009.'
