Opportunity to Acquire a Leading Specialist Care & Education Provider for Young People in the UK - Project Northstar

The Opportunity
The Company is an established multi-service provider of specialist care and education for vulnerable young people based across the South Coast of the UK.The Company benefits from a visible and resilient customer base with multiple expanding revenue streams which include Supported Independent Accommodation (SIA), Children’s Homes, Education (Independent School), Alternative Provision (AP) and Therapy.
Per the latest forecast, a c. £2m cash investment in the Company would fund the current redundancy programme and working capital and generate £250k EBITDA in FY27, increasing to £1.4m EBITDA by FY30.
The Company faces capital constraints following a period of market-wide disruption caused by regulatory changes, particularly focused in the SIA division. Consequently, BTG have been appointed to run an accelerated sale process.
Key Points
The Company has achieved strong historic growth since being acquired by the Group in 2020, and revenue is forecast to increase from £5.2m in FY27 to £11.0m by FY30, a c.28% CAGR which reflects recoverability and scalability across all services.
Multiple divisions are Ofsted-registered, with the Company also being CQC-registered, which differentiates the Company against its competitors. The Company generates Average Weekly Fees (AWF) in the mid-upper range compared to the wider market.
A property portfolio streamlining exercise is underway to focus the Company on its most valuable 24 leasehold properties which support their SIA, AP and Education revenue streams. Expansion is expected following investment.
Overall historic EBITDA of c.20% illustrates the earnings potential of the Company under stabilised occupancy rates which have dipped following recent regulatory issues. A very positive recent regulatory rating has lifted a previously imposed pause on new service users.
The secured debt of the wider group is held by a funder who is well-informed and supportive of the sale process.

Expression of Interest
We encourage any interested parties to submit information requests to BTG to fill any gaps not covered by our CIM. Our intention is to answer any questions quickly which will provide sufficient detailsto allow potential buyers to provide indicative expressions of interest no later than close of business on Friday 5th June.
Offersareinvitedforthe shares in the Company, however in the absence of a deliverable share deal, we will consider the optimal business and assets solution.
Interested partieswillberequiredtosignanon-disclosure agreement (NDA).

For further information please download the Notice of Sale attached

TO REGISTER YOUR INTEREST PLEASE EMAIL [email protected]