Features

Market View – interest rate rise will dampen activity

Management Business
Arun Kanwar, partner at Cairneagle Partners, gives his view on the changing outlook for the nursery market
'There will continue to be strong acquisition activity in the childcare space on account of its dynamics'.
'There will continue to be strong acquisition activity in the childcare space on account of its dynamics'.

I am currently having daily conversations about the outlook for the UK nursery market, and the appetite for acquisitions and valuations. What I find most interesting in giving my views is how quickly issues are emerging and sometimes even changing over time, which in turn impacts our outlook.

For example, at the beginning of this year, nobody could have predicted the extent of the staffing crisis or inflationary pressures. Another example is that just a few weeks ago, the forecast for the UK was firmly that we are at the beginning of a difficult recession. However, that may now be averted (at least in the short term) on account of the planned capping of energy bills by the new Prime Minister.

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