Baird Managing Directors Dan Alfe and Andrew Snow, who lead the education sector investment banking coverage, were recently featured in Childcare Exchange explaining why they expect 2018 to be a busy year for the early childhood education market. In the commentary, "Consolidation in the Early Education Market – Version 2.0," Alfe and Snow note several observations:

"Renewed investor interest in the sector has been due, in part, to the improving economy, industry players stringing together multiple quarters of positive growth and attractive unit-level economics," the bankers said.

"Another driver of recent merger and acquisition activity is the continuing consolidation, or 'roll-up,' opportunity in this highly fragmented market. The scarcity of platform assets has meant that the larger players can command a premium, while smaller school networks tend to trade at a meaningful discount," they added.

Subscribers can read the full article on the Childcare Exchange website.