Services For Investors
The childcare industry is transforming at a rate never before seen. Whether it is consolidation within the UK or fresh investment and ideas coming from around the world, it has never been more important for those entering the sector to have insight that empowers them to make the right investment decisions and knowledge that differentiates sound opportunities from risky ones.
Hopscotch is your conduit between commercial expertise and experience and the realities of the UK Early Years sector. Our consultants understand the changing landscape of the industry, have first-hand experience of the commercial realities inherent in the sector, and work tirelessly to deliver both outstanding levels of practice and maximal commercial return to operators.
Our investor-focused services will ensure that you understand not only the current state of a prospective acquisition but also its future prospects and potential for growth. Hopscotch can be with you every step of the way to support decisions that minimise risk and maximise return – and help you take the next steps to grow the organisation once an acquisition is completed.
Your investment and commercial expertise. Our comprehensive knowledge of the sector. A recipe for sustained success!
Pre-Acquisition Assessment
Want to know where settings stand today, rather than when they were last inspected by the regulator? Our holistic in-setting assessment will let you know exactly how a nursery and its team are performing, grading them against Ofsted's criteria and calling out potential exposures that are not apparent from either commercial due diligence or the latest inspection reports. We'll also give you an 'art of the possible' view of the ceiling potential of your target acquisition to enable you to accurately roadmap post-acquisition growth.
Local Market Analysis
When looking to invest in the Early Years sector, accurate competitive and environmental analysis can be the difference between a sound acquisition and a long-term drain. Combining boots-on-the-ground analysis through mystery shopping visits to both potential acquisitions and competitors with in-depth demographic and local insight, Hopscotch will ensure that you have an accurate picture of the potential risks and opportunities inherent in the area and strategic information to shape your decisions on how to evolve post-acquisition.
Post-Acquisition Strategy
Acquiring a setting or group of nurseries is only chapter one of the story. Hopscotch understand that you invest for the future - and identifying the correct acquisitions simply starts you on the right path to that future being a success. We can assist in roadmapping the growth in individual nurseries, strategic capital investment across a portfolio and targeting subsequent acquisitions to scale gracefully and with as little friction as possible. Hopscotch are your partner in making the right decisions at every step of the way.
Services For Startups
Whether you are entering the childcare industry for the very first time, or whether you are an established operator looking to expand your business through opening new nursery sites, Hopscotch is your trusted adviser and facilitator. Our team have experience and subject matter expertise in, amongst other aspects:
- Sourcing suitable locations for operation
- Competitor analysis ahead of purchase / discussions with existing owners regarding acquisition
- Premises design and remodelling to meet regulatory requirements and maximise revenue
- Business and commercial planning
- Sourcing of fixtures and fittings, equipment and furniture using partnerships with best-of-breed suppliers
- Recruitment and training of staff team
- Implementation of business operations systems and curriculum planning and assessment systems
- Provision and embedding of best practice policies and procedures
- Management and educational support through opening and Ofsted registration
Our commercial and startup consultant team initially work with you to understand the scope and timescale of your project and agree where Hopscotch should plug in - usually aspects in which you feel you need the most support, whilst being more hands-off on aspects that you are confident with. We can then generate a costed project plan to take us to the point where we go to ‘business as usual’ running and intensive support can scale back to reflect that your new setting is operating and thriving.
HOPSCOTCH DUE DILIGENCE FOR GROWING CHAINS
Hopscotch's Due Diligence services are tailored and individualised to support investment groups in evaluating and acquiring individual nurseries and small nursery groups across the UK. We provide a comprehensive package of services designed to uncover critical insights, mitigate risks, and ensure informed decision-making. Key areas of focus can include, but are not limited to:
1. Financial Analysis
- Profitability Assessment: In-depth review of financial statements to assess revenue streams, operational costs, and profitability trends.
- Cash Flow Analysis: Evaluation of current and projected cash flows to ensure financial stability and sustainability.
- Debt and Liabilities Review: Identification and assessment of existing debts and potential financial obligations.
2. Operational Review
- Staffing and HR: Analysis of staffing levels, payroll, employee contracts, and compliance with employment laws.
- Compliance and Licensing: Verification of adherence to Ofsted regulations, health and safety standards, and other statutory requirements.
- Capacity and Enrolment: Assessment of nursery capacity, enrolment trends, and waiting lists to determine market positioning.
3. Market and Competitive Analysis
- Demographic Study: Evaluation of local demographics to gauge demand for childcare services.
- Competitor Landscape: Analysis of local competitors and their offerings to understand market saturation and differentiation opportunities.
4. Property and Assets
- QIV/Audit: Inspection of nursery premises to evaluate the condition of physical assets, infrastructure, and compliance with zoning laws. We recommend auditing at least 50% of all nurseries within a small group.
- Lease Agreements: Review of property leases, ownership documents, and long-term liabilities.
5. Reputation and Client Base
- Parent Feedback: Analysis of customer satisfaction through reviews, feedback, and surveys.
- Community Standing: Evaluation of the nursery's reputation within its local community.
6. Strategic Growth Potential
- Scalability Assessment: Insights into opportunities for expansion, additional services, or operational improvements.
- Exit Strategy Planning: Guidance on long-term value creation and eventual divestment strategies.
7. Legal and Risk Assessment
- Contract Review: Examination of supplier agreements, vendor contracts, and partnership terms.
- Litigation Risks: Identification of past or ongoing legal disputes.
Deliverables
We provide detailed reports summarising our findings, highlighting key risks and opportunities, and offering actionable recommendations. Our goal is to empower investment groups with the information needed to make confident and strategic decisions in the nursery sector. Additionally. each QIV/Audit will be completed with a full breakdown of findings, specifically designed to aid investors in creating a robust action plan for next steps required at each individual setting.