Buy-Side Advisory Mandate for Early Childhood Sector Expansion

Mandate Description

The mandate consisted of buy-side advisory and regional and international expansion strategy support carried out on behalf of a major player in the early childhood sector in France.

The assignment focused on the acquisition of a first group of ten to fifteen childcare facilities located in the western region of the country, as well as the acquisition of a second group of five to ten establishments in the central region.

The mandate also included preparation for the opening of new childcare centres in Central Europe, as part of the company’s broader European expansion strategy.

Key Issues

The main challenge of the mandate lay in the simultaneous coordination of multiple acquisition processes while ensuring the operational continuity of the existing network.

Beyond financial and strategic considerations, the assignment required integrated management of legal, tax and regulatory dimensions specific to each transaction.

The work notably included the review of key contractual documentation, such as term sheets, share purchase agreements and asset and liability guarantees, as well as compliance with local regulatory frameworks.

From a financial perspective, valuation multiples observed in the early childhood sector generally ranged between four and seven times EBITDA, depending on geographic location, quality of facilities and the potential inclusion of real estate assets within the transaction scope.

These benchmarks were used to contextualise market valuations and support strategic discussions, without constituting an independent valuation opinion.

The analysis of available financial data, consolidated profitability and potential economic synergies enabled a detailed understanding of performance drivers and value creation levers.

The geographic and regulatory diversity of the assets required a differentiated approach, integrating local legal, social and operational specificities.

Approach and Results

The advisory team assisted finance and business development management in the analysis of target financial statements, post-acquisition impact modelling and preparation of financing requests.

• Close coordination with legal and tax advisers ensured alignment between economic considerations and contractual structures for each transaction.
• The assignment contributed to structuring acquisition processes, securing negotiation phases and supporting management in the implementation of post-acquisition integration plans.

The completed acquisitions strengthened the group’s geographic footprint and enhanced its competitive positioning in the French and European early childhood services market.