Completed sale
Families First Fostering Acquires Kaleidoscope Assessment Services Childcare Company | Transaction Overview
We advised in a substantial deal that sees two families merge… Kaleidoscope Assessment Services, a leading provider of comprehensive parenting assessment services, has been sold to a similar firm – in a very substantial deal within the Care industry. Initially established in Burnley, Kaleidoscope has operated since 2012, growing a diverse client base derived from social services and local authorities, opening an additional Manchester city centre location in 2014. Both centres consist of three self-contained flats, accommodating families with comfort and safety, and support from a team of professionals, support workers and an in-house social worker. Kaleidoscope owners Peter and Janine Clinch, looking to retire, instructed Knightsbridge Operations Manager Leanne Boulding to use her expertise to generate the best possible sale. Leanne commented: “Kaleidoscope is a great business with impressive profit margins in the care industry. We had lots of care buyers and investors expressing interest and saw offers tabled within three months of going live. The firm has two freeholds, is opening a third location and has further expansion plans – which proved attractive.” Staffordshire-based Families First Fostering emerged with the most suitable offer. It is a family-owned, therapeutic fostering agency providing individualised support to children and families. Also established in 2012, Families First offers comprehensive parenting assessment services, maintaining good relationships with local authorities and social services, which will be boosted by Kaleidoscope’s services. The deal was, however, not without its complications… Leanne further explained: “The transaction was far from straightforward due to third-party difficulties, so lots of restructuring of the consideration happened to make the deal work.” Nevertheless, a good relationship was formed between both sides, which will see the vendor’s daughter remain with the business as a Manager, post-sale. Fittingly, Families First was established by mother and daughter Amanda and Rachael Davies. Having cemented itself in The Midlands, recently winning the 2023 National Children & Young People’s Fostering Agency of the Year Award, the acquisition enables Families First to scale throughout the North West. Peter Clinch expressed his delight: “I was more than happy with Knightsbridge’s service and the brilliant help from Leanne.”