Check how the price, buyer adjustments, works, working capital and loan terms fit together before you make an offer.
Illustrative example only. Use a maintainable annual EBITDA figure after reviewing accounts and normalising owner costs. Include any new operating costs separately below, and avoid counting them twice.
EBITDA is not free cash flow. This excludes tax, trading changes, debt refinancing, deposits, rent reviews, lease liabilities, funding continuity, sale structure and due-diligence findings. Working capital is cash needed, not a purchase expense. A business may fail these checks even when the price multiple looks attractive.
Discuss an acquisition reviewUsing the numbers
Use the figures as a starting point for a real business decision, with your own assumptions and evidence.
01 / How to use the calculator
02 / Worked example
Illustration: A £150,000 purchase plus £40,000 refurbishment, £30,000 opening working capital and £10,000 transaction costs means £230,000 is required before financing arrangements and any further adjustments.
An affordable asking price is not the same as an affordable transaction. The model helps you identify the cash requirement and assess how debt repayments affect the position.
03 / Interpreting the result
This is an affordability and offer-planning aid, not a nursery business valuation. It cannot establish the quality of historic earnings, lease security, staff liabilities, funded-childcare continuity, school relationships or Ofsted registration risks.
Do not commit to an offer based on the calculator alone. Financial, legal, property, staffing and regulatory due diligence remain necessary.
Content reviewed 29 October 2026. Recheck rates, funding rules and your assumptions before making a decision.
Questions owners ask
No. It tests an assumed purchase price against costs and cash flow. Value depends on evidence about earnings, assets, risk, lease terms and the market.
Payroll, rent and other bills continue while cash collections, funded payments and occupancy can move. Buyers need money to operate the setting, not just complete the purchase.
Yes. Include legal, accountancy, property and other transaction costs where applicable. Seek current quotes rather than relying on an arbitrary percentage.