Our Mission

Bright Lands Education's mission is to provide the highest quality education and care for children in Canada, focusing on nurturing their physical, cognitive, social, emotional, and linguistic development. We strive to create a safe and supportive environment for every child and maintain and strengthen the legacy of our business. Acquisition of schools from retiring owners is a key strategy for the industry. We believe in continuously improving and enhancing our services to meet the evolving needs of families in our community and providing the best possible experiences for every child in our care.

Our Objective

Bright Lands Education will focus on acquiring cash-flowing “for-profit” Early Education/Child Care centers with an approximate EBITDA between 13 - 25% The acquisition process is planned to begin during the third quarter of 2023. The company anticipates a smooth transition from the previous owner, which can take approximately 6 to 18 months. Maintaining and celebrating the previous business’ legacy is important to us. Bright Lands Education plans to operate using a hub and spoke operational style.

Industry Overview

The Canadian daycare Industry is a rapidly growing market that supports laborforce participation for parents, particularly mothers. It represents a critical service for two-income families and single-earner families with children. As more women join the workforce, the demand for Early Childhood Education services continues to rise and is forecasted to reach pre-pandemic levels. According to an IBIS World report in 2023, the industry statistics show it will generate $9.1 billion in revenue by 2026, driven by rising disposable income, decreasing unemployment, and an increasing number of children and immigrants.

The Early Childhood Education industry in Canada is currently generating revenues of $7.8 billion and is estimated to grow with a Compound Annual Growth Rate (CAR) of 2.73% from 2021 to 2027. Wages paid to caregivers account for 64% of the industry's revenue and still result in an average of 15-25% profit margins. Bright Lands Education recognizes the potential opportunities created by Government subsidies, including the recently announced Canada-Wide Early Learning and Early Childhood Education WELCC program, which has enabled families to afford quality care and education for their kids. Bright Lands Education has identified the Early Childhood Education industry in Canada as a prime target for acquisition and plans to initiate its operations on the western side of the country, specifically in British Columbia and Alberta, intending to expand to the eastern provinces in the future.

Source: Day Care in Canada industry outlook(2021-2026). IBISWorld

Bright Lands Education's acquisition of Early Childhood Education in Canada comes when the industry is experiencing shifts in response to the COVID-19 pandemic. The Survey on Early Learning and Child Care Arrangements (SELCCA) 2022 revealed that 52%of Canadian children under 6 years were in licensed or unlicensed child care, which is unchanged from late 2020. Daycare centers, preschools, and centers de la petite enfance experienced a return to pre-pandemic rates, while family childcare homes saw a decrease in usage.

Source: Statistics Canada. Table 42-100-0004-01 Use of early learning and child care arrangements, children aged 0 to 5 years; Child Care in Canada: Types, Cost & Tips for Bright Lands Educationmers | Arrive (arrivein.com)

See graph. This illustrates the proportion of children under 6 in childcare by type of arrangement for 2019, 2020, and 2022. Approximately 4 in 10 parents using child care in early 2022 reported difficulties finding it, with affordability and pandemic-related issues being significant factors. Challenges in finding child care impacted parents' work schedules and return-to-work plans. Bright Lands Education's acquisition of early education and child care in Canada comes at a promising time as the sector continues to adapt and recover from the challenges posed by the COVID-19 pandemic. With parents increasingly recognizing the importance of child care and its role in supporting work-life balance, the demand for high-quality and affordable services is expected to grow.

Source: Statistics Canada. Table 42-100-0004-01 Use of early learning and child care arrangements, children aged 0 to 5 years; Child Care in Canada: Types, Cost & Tips for Bright Lands Educationmers | Arrive (arrivein.com)

In Canada, securing affordable child care has been challenging due to limited availability, making it crucial for parents to plan their finances accordingly. Child care in Canada is classified into three age groups: infants (under two years), toddlers (18 months to three years), and preschool-age children (two-and-a-half years to kindergarten age, which is four or five, depending on the province). The monthly costs for child care can range from $181 to $1,986 CAD, depending on the province. Agreements have been signed with every Canadian province and territory. Each deal includes plans to lower child-care fees, create new spaces, improve the quality of care, and support the child-care workforce. The timeline for achieving $ 10-a-day child care varies by province and territory, with some targeting 2027.

As the industry bounces back and evolves to meet these demands, Bright Lands Education is well-positioned to capitalize on emerging opportunities, making this acquisition a strategic and timely investment in the future of Early Childhood Education.

Geographic Overview

Bright Lands Education's acquisition strategy for expanding its business in Canada is marked by a geographic overview that considers various regulatory and market factors across the country. While Bright Lands Education is interested in expanding its operations to all provinces in Canada, it has decided to exclude Quebec due to the extra layers of regulation and a separate approach from the general federal regulations. Overall, Bright Lands Education's acquisition strategy is shaped by careful consideration of each province's regulatory and market conditions, with the goal of identifying the best opportunities for growth and expansion while minimizing risk.

Business Strategy

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