Growth through acquisition - Childcare
Overview
Octavian was engaged to develop and execute an acquisition growth strategy for YMCA WA. The mandate was to expand YMCA’s portfolio of early learning centres (ELC) in order to supplement traditional revenue streams and support the overall mission of the organisation.
Working closely with the Board, Senior Management and funding partners, Octavian implemented a multi-phased acquisition strategy that resulted in the successful acquisition of two early learning centres within nine months.
Situation
The early learning industry has experienced considerable disruption over the past decade, characterised by the collapse of ABC Learning and subsequent rapid consolidation by listed and private equity operators. This resulted in a Seller’s market, with significant upward pressure on valuations.
In a hyper-competitive acquisition market, YMCA WA not only needed to identify quality assets that aligned with their existing portfolio, at reasonable valuations, they also needed an approach that would differentiate them from other acquirers.
Solution
Market Mapping
Extensive market research ensured we had complete visibility into the ELC market and the associated valuation metrics.
Acquisition Framework
Working closely with the YCMA WA Board and senior management, we developed a documented acquisition framework for identifying and evaluating ELC opportunities.
Deal Management
We implemented a multi-phased market engagement strategy, liaising directly with business owners to elicit premium off-market opportunities.
Outcome
Maylands Early Learning Centre
Acquired 2019
Within nine months of market engagement, we successfully acquired and integrated two early learning centres in the YMCA WA portfolio. These were the first two metropolitan centres for YMCA WA.
Westminster Early Learning Centre
Acquired 2018
Octavian also established a pipeline of opportunities that were interested in divesting over the next 1-2 years.