Features

Business Development - Time to plan for the future

Management Business
Banks are increasingly willing to fund nursery acquisitions but 'honest conversation' is needed, says Ian Murchie, relationship director at Barclays' healthcare team.

As we head towards the final months of 2013, there is an optimistic feel in the air. The economy is showing tentative signs of recovery, and there is talk of it turning a corner with the latest growth figures for the second quarter of the year showing the fastest rate of growth in three years. This is being echoed in what we are seeing within the nursery sector.

Where nursery operators may have previously retrenched, many we are speaking with now are looking at how they can take their businesses forward in a viable way and are approaching their lenders to support this. The most appealing option is often exploring expansion opportunities through the acquisition of smaller operators. Unlike new developments, acquisitions offer revenue and profit from day one, so there is an obvious, and often instant, benefit for operators to acquire. From a lender's perspective, there is a definite appetite to lend to, and support, strong nurseries as they look to grow.

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