For several years, childcare was among the UK’s most active dealmaking sectors. Like the veterinary sector, childcare offered consolidators and acquirers the perfect mix of reliable revenues and a highly fragmented market.
However, unlike the veterinary industry, which proved largely immune to the worst effects of COVID-19, the pandemic immediately forced the childcare sector into shutdown and dealmaking suffered accordingly.
Despite this stop-start 18 months and continuing uncertainty surrounding COVID-19, M&A in the childcare sector is showing clear signs of recovering, with a number of major acquisitions in 2021.
As the impact of COVID-19 continues to be felt and the UK begins learning to live with the disease, what are the factors and challenges that are currently shaping the childcare sector and, most pressingly, what is the M&A outlook for this busy sector?
As things stand
Challenges facing the childcare market
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