How to Value an EdTech Company: Multiples & Example

One of the hardest things to do when building an EdTech business is determining its value. Whether you are seeking growth capital or looking to exit, you need to have a basic idea of what your business is worth.  If you value your business too high, investors won’t be willing to speak with you.  If you value it too low, you leave money on the table or end up giving away too much equity to raise the growth capital you need. So, how do you calculate a reasonable value for your EdTech company?

Well, the valuation methodology outlined below applies to all EdTech companies, regardless of when you are pre-revenue, established, or looking to exit.

How to Value an Edtech Company: Multiples & Example

The global Edtech industry is expected to reach a market value of over $340 billion by 2025. Because of strong underlying market trends, the Edtech sector has received some of the highest tech valuations, with publicly traded EdTech companies trading at 5.0x to 18x  next twelve months’ revenue (NTM)!  These valuations dropped significantly in late 2021 and early 2022, but are expected to rebound.  See our article on EdTech multiples.

If you are the founder of an EdTech company and are thinking of raising a round of growth capital, you’re at the right place. In this article, I’ll provide a step-by-step guide on valuing any Edtech company.

First and foremost, it’s important to understand that EdTech companies are not valued like traditional businesses. Valuations of conventional businesses are based on the company’s free cash flow. With EdTech companies, the most common valuation method is what’s referred to as the Venture Capital approach, which values companies based on a multiple of revenues.

In this article, we’ll use publicly-traded companies in the Edtech industry for comps so you can follow along and use them to value your EdTech business.

Note: If you need help preparing a pitch book for investors, contact us to learn how we can help you prepare a solid Edtech pitch book that will significantly increase the odds of a successful capital raise.

Venture Capital Edtech Valuation Method

There are several startup and early-stage valuation methodologies. While none of them is perfect, they all try to estimate a valuation for a business based on several qualitative and quantitative factors. The Venture Capital Valuation Method is the most common method investors use to value Edtech companies.

The VC method considers business fundaments, market demand, and investor return on investment factors.

Why Do Investors Use the Venture Capital Method to Value an EdTech Company?

The VC method is a relatively simple and straightforward way to value an early-stage EdTech company because it is driven by several factors that can be grouped into 4 categories.

1. Market Demand

Your EdTech company will be more valuable if you demonstrate that it is part of a large, highly fragmented market that is growing at double or triple digits.

2. Market Fit & Adoption

Your EdTech company will be more valuable to investors if you prove that the business has early adopters or users (market-fit) and that people are willing to pay for your service (adoption.)

3. Management Team & Track Record

Your Edtech company will be more valuable to investors if you demonstrate that your management team has relevant sector experience and a successful track record of growing similar businesses.

4. Investor’s Expectations & Founder’s Negotiating Power

Last but not least, keep in mind that investors are willing to back EdTech startups and early-stage companies because they can earn a substantial return on their investment. If a startup is deemed too expensive, it reduces an investor’s return on investment, and they won’t invest.

At the same time, the more investors you can pitch to and the more term sheets you receive, the better your negotiating position and the higher the valuation.

The Three Value Drivers When Valuing an EdTech Company

The VC method allows founders and investors to estimate an EdTech company’s value by inputting three main variables:

1. Projected Revenues

Projected revenues are usually based on an integrated financial model that includes projected revenue for the next five years. Keep in mind that unless your financial model, and the assumptions that drive it, are supported by facts and hard data, investors will take them with a grain of salt. So it’s important to work with an independent, objective financial advisor who can help you develop a rock-solid set of projections.

2. Comparable Industry Valuation Multiples

Investors rely heavily on valuation multiples from comparable companies within the same industry and sector. The most common multiple used is EV/Revenue, which stands for Enterprise Value as a multiple of Revenue. See below for 2022 public Edtech company valuation multiples.

These multiples change daily and are sensitive to many variables, including interest rates, stock market performance, IPO results, M&A activity, market demand, etc.

3. Investors’ Required IRR

The other important variable is the rate of return investors are looking for. An investor’s required IRR (“Internal Rate of Return”) depends on the type of investor, the EdTech company’s stage, and the investment’s perceived risk. The higher the perceived risk, the higher the required IRR. For example, an investor would need a higher IRR for a seed money investment in an EdTech startup than for an investment in an early-stage EdTech company looking for a Series A or Series B round of financing.

Edtech Valuation Example

Now that we’ve covered how the Venture Capital valuation method works let’s see how to use it to value an early-stage Edtech company looking to do a Series A capital raise.

Prove Market Fit & Adoption

The first thing to do is create a detailed, integrated financial model that includes historical financial data and operating metrics. This is important because your historical performance will prove market fit & adoption and support the assumptions you use to create your projections.

Expected Revenues

The next step is to create detailed revenue and expense projections for five years. While the valuation is based on a multiple of revenues, it’s also important to know your operating and growth assumptions to determine how much capital you need to raise to hit your revenue targets.

Need help building an integrated financial model and projections? Contact us for a free, no-obligation consultation.

So, for this example, let’s assume your EdTech company is in the K12 reading sector. You’ve been in business for three years and have been funded by personal funds and friends and family investors. Your business now has 450 subscribers and is generating $250,000 in revenue, and your subscriber base grew by 100% last year. You built an integrated financial model with historical results and projected revenue for the next 5 years. The projections show that next year you expect revenues to be $625K and grow to $4.1 million in Year 5.

Below is a very basic example of projected revenues for the next five years.

Public EdTech Valuation Multiples

The next step is determining the right multiple to use to value your business.

Investors track over a dozen publicly traded Edtech companies to gauge the market’s appetite for EdTech investments.

While the multiples vary a lot from company to company, each is based on investors’ assessments of the company’s market demand, business model, management team, growth rate, and profitability.

Below is a sample of some of the public EdTech companies we track.  Be sure to read this excellent article from the venture capital group, GSV Ventures regarding the valuation of publicly traded EdTech companies.

In our example of the VC valuation method, we will use the Sector Average EV/Revenue multiple of 4.0.

Keep in mind that when preparing a valuation of your EdTech company, it’s important to select the comparable companies that are the most like the company you are trying to value. That won’t always be possible, but to support your valuation, you’ll need to explain to investors why you selected the comparable companies you picked rather than others.

Adjusting the Multiple for a Private EdTech Company

Because we started with valuation multiples from public companies, we need to adjust that multiple to reflect that your EdTech company is privately owned. Privately owned companies are less valuable than publicly traded companies because they are much more difficult, time-consuming, and expensive to sell. As a result, investors apply an Illiquidity Discount, also referred to as a Discount for Lack of Marketability, of between 20% and 30%.

Let’s use a 25% discount, which results in an adjusted EV/Revenue multiple of 3.0x.

Determining Your Exit Value

The next step in the VC Method is to calculate your EdTech company’s value when your investors exit. In this example, we assumed the exit would be after five years. This is called the Exit Value.

Exit Value = EV/Revenue x Revenue at exit (Year 5)

Year 5 Revenue = $4.1 million

EV/Revenue Multiple = 3.0x

Exit Value = 3.0x x $4.1 million

Exit Value = $12.3 million

Investors’ Required Rate of Return (IRR)

The next step is determining the return on investment your investors will seek. The internal rate of return (IRR) required by investors will vary depending on the investor, the stage of the EdTech company they’re investing in (early-stage deals require higher returns than later-stage deals), and the industry trends.

Based on our experience, VCs typically look for a 40-60% IRR on the companies they invest in. Over the last few years, venture capital firms, on average, have generated a 19.8% IRR. Keep in mind that this is an average, so it includes their failed deals (the ones that went wrong) as well as their success stories. They look for a 40%-60% IRR because providing venture capital is a high-risk business, and an estimated 80% of the deals they invest in are unsuccessful or don’t live up to expectations.

In this example, I’ll use 40%IRR as a low-end and 60% IRR at the high-end expected rate of return.

Keep in mind that as your EdTech venture becomes more proven and successful, the perceived risk of the investment goes down, so investors will be willing to accept a lower IRR.

Calculating Your Post-Money Valuation

The next step is to calculate your Post-Money value. Let’s assume you are looking to do a Series A capital raise, so we will also assume investors will require a 40-60% IRR over the next five years.

Using these IRR assumptions, we discount the Exit Value back to its present-day value to estimate the post-money valuation of your business. The post-money valuation is your EdTech company’s value after receiving the infusion of capital. In contrast, a pre-money valuation is the value of your EdTech company as it is today, without the injection of capital.

Post-money valuation = Exit Value / (1 + IRR)^5

Post-Money Value = $12.3 million/(1 + 40%)^5 = $2,287,865

This is the high end of the post-money valuation range, based on the lowest expected rate of return.

To calculate the low end of the post-money valuation range, use the highest expected rate of return.

Post-Money Value = $12.3 million/(1 + 60%)^5 = $1,173,466

This means the post money value of your early-stage EdTech company is between $2.3 million to $1.2 million.

It’s interesting to note that while we calculated the Exit Value using a 4.6x multiple (from the publicly traded EdTech companies), the EV/Revenue multiple for your early-stage EdTech company is much higher and between 4.7 and 9.2 times your current revenues of $250,000.

Getting the Best Terms

Finally, remember that the post-money valuation arrived at above is for 100% of your business. When doing a capital raise, it’s important to raise as much capital as possible while giving up as little equity as possible in exchange.

To get the best terms from potential investors without giving up all your equity, your integrated financial model must include an accurate estimate of your operating expenses so you can figure out exactly how much capital you need.

If your projections show that you need $1 million in growth capital, you may be able to raise the capital you need and only give up 44% of the equity in your company ($1M/$2.3M=44%) in exchange.

The other important this you can do to limit the amount of equity you give to investors is to work with an experienced investment banker. An investment banker who knows the education space can help you build a compelling investment deck, create an integrated financial model backed by solid assumptions, and introduce you to more investors. The more investors you speak with and the more term sheets you receive, the better terms you’ll get.

 About the Author and Jackim Woods & Co.

Rich Jackim is an education industry investment banker and educational industry entrepreneur, and former mergers and acquisitions attorney.

For the last 25 years, Rich has been providing boutique investment banking services to middle-market companies in the education sector.

Rich also founded a successful training and certification company called the Exit Planning Institute which he sold to a private equity group in 2012.

Rich is also the author of the critically acclaimed book, The $10 Trillion Dollar Opportunity: Designing Successful Exit Strategies for Middle Market Businesses.

Jackim Woods & Co offers skilled mergers and acquisitions advisory services to privately owned schools, colleges, and EdTech companies in both sell-side and buy-side transactions. Jackim Woods & Co has arranged over 100 successful transactions, ranging from less than one million to more than eighty million dollars in value.

If you own an education-related business and are interested in exploring your options, I would welcome an opportunity to speak with you. Feel free to contact me at 224-513-5142 or rjackim@jackimwoods.com.

Valuations for Title IV Schools and Training Companies at Record Highs

Valuations for vocational schools and training companies are at record highs now.  As business performance rebounds, buyers are competing for strong performing businesses. That has led to an increase in the number of education-related businesses that were sold in Q3 of 2021.  The number of education deals that closed in the third quarter increased 17% over the previous quarter, and 11% from the same quarter in 2020, according to Jackim Woods & Co, which tracks and analyzes vocational school and training company sale transactions.

2021 Education Industry Seller Confidence Index

Valuations for vocational schools and training companies are at record highs now because seller confidence is up.  As the economy rebounds, owners of vocational schools and training companies are returning to the market, feeling more confident they can sell their schools and training companies for a good price and less willing to wait until the COVID pandemic is over. Seller confidence increased to 57 out of 70; that’s up from 45 in 2020.  This is the highest seller confidence level since the high of 58 in 2018. Today 49% of the respondents believe they can receive a higher sale price for their school or training company today compared to a year ago, and 46% of respondents said the top factor motivating their confidence was an improvement in enrollment and revenue.

The average revenue for vocational schools and training businesses that were sold in the third quarter was $755,000, up 6% from the same time last year. Meanwhile, buyers of education-related businesses, especially Title IV schools, are paying record-high prices for businesses that performed well during the pandemic. The average sale price in the third quarter hit a new high of $1,780,000; that’s 17% higher than the previous year and 40% above pre-pandemic levels.

With current valuations above where they were pre-pandemic, many school owners are thinking now may be the right time to exit.

2021 Education Industry Buyer Confidence Index

Valuations for vocational schools and training companies are also at record highs because buyer confidence is up.  Buyers noted that there is a limited supply of profitable well-run schools and training businesses on the market.  In addition, several buyers noted that because of the shift to online learning, schools will be able to expand their geographic reach while reducing the cost of delivering educational services.  The combination of these two factors signals significant growth opportunities and higher margins for well-run schools and training companies in the future.   As a result, buyer confidence increased to 60, up significantly from 48 in 2020 and only slightly above the buyer confidence level of 59 in 2018.

It is interesting to note that demand for high-performing vocational schools and training businesses is increasing. According to Rich Jackim, Managing Partner of Jackim Woods & Co., “buyer inquiries on our education-related listings are up 39% since the same time last year.  However, many business owners are putting off selling until their schools or training companies have fully recovered, so the supply of profitable, well-run schools is still limited.  This is driving up values and makes it a sellers’ market.”

If you are beginning to think about selling your training business or Title IV vocational school and would like to explore your options, please contact Rich Jackim at rjackim@jackimwoods.com for a FREE, confidential, no-obligation consultation.

Number of Acquisitions in Education Sector Soars in 2021

The total value of mergers and acquisitions in the education sector increased by more than 50% from the second half of 2020 to the second half of 2021, as companies across the industry rushed to add education-related companies to their portfolios, according to a report by mergers and acquisitions advisory firm, Jackim Woods & Co.

Jackim Woods & Co. is a mergers and acquisitions firm that provides advice and financial consulting to middle-market companies in the education sector.

The overall number of individual M&A transactions also rebounded to pre-pandemic levels.

Buyers of education companies closed 210 mergers in the first half of 2020, and 240 acquisitions during the first six months of 2021.

The total value of acquisitions in the education sector between January and June was $19.4 billion, largely driven by Platinum Equity’s $6.4-billion acquisition of McGraw Hill, the report noted.

The market value of deals closed during the first half of 2021 had almost as much market value as all the deals closed during all of 2020.
Private equity-sponsored transactions accounted for 40% of deals during the first six months of 2021. That’s 8% higher than the average number of private equity-backed deals for the last three years.

According to Jackim Woods & Co, 97 of the 240 deals during this time frame were sponsored or financed by financial investors like private equity, venture capital, or other investment firms. That’s the highest number in three years and a 130% increase over the first half of 2020.

Twelve deals during the first half of 2020 had purchase prices of more than $100 million, and at least seven of those involved the K-12 sector. About 33% of the deals had purchase prices of between $4.5 million and $54.6 million.

The K-12 EdTeh segment surpassed the professional training services sector as the education industry’s most active market segment in the first half of 2021.
Approximately 50 deals involved the acquisition of professional training companies in the second half of 2019 and about 45 deals covered professional training services in the first half of 2021. There were approximately 40 deals in the K-12 EdTech segment in the second half of 2020, while nearly 60 deals closed in that segment in the first half of 2021.

For other segments of the education sector, the analysis showed a mixed picture of market activity for the first six months of this year compared to the second half of 2020.

The number of deals in the childcare services and higher-education EdTech segments increased during this period, but the number of deals in professional training technology, higher-ed institutions (including Title IV vocational schools), and K-20 services decreased. Deals involving for-profit K-12 schools remained stable.

According to Rich Jackim, Managing Partner of Jackim Woods & Co, “we are seeing strong demand for Title IV vocational schools that prepare students for careers in the healthcare professions.  We’re also seeing strong demand for non-Title IV schools, like commercial driving schools and cybersecurity and programming schools.  Valuations for these schools have increased significantly over the last 24 months.”

In addition to the McGraw Hill acquisition, the most interesting education sector deals in the first half of 2021 included

• Byju’s $900 million acquisition of Indian tutoring company Aakash Educational Services
• Renaissance’s $650 million acquisition of Nearpod
• Kahoot’s $435 million acquisition of K-12 secure-sign-on provider Clever

If you own an education-related business, including a Title IV college or vocational school, a k-12 proprietary school, or an EdTech company and are beginning to think about selling, we would be delighted to speak with you and help you explore your options.

Contact Rich Jackim, Managing Partner of Jackim Woods & Co at 224-513-5142 or rjackim@jackimwoods.com.

Education Industry Acquisitions Decrease in 2020 Due to COVID Concerns

Fueled by a multi-billion-dollar deal, the value of mergers and acquisitions in the education sector increased by more than 80% in the first half of 2020, even though the number of transactions dropped to a 30-month low, a new report by Jackim Woods & Co finds.

Overall, the market value of deals in the education sector increased from $4.9 billion in the first half of 2019 to $9 billion during the same period in 2020, according to research by the mergers and acquisitions firm, Jackim Woods & Co.

Jackim Woods & Co is an investment banking firm that provides advice and financial consulting to middle-market companies in the education sector.

Their analysis tracked 1,128 education sector deals between 2018 and June 2020.

Sixty-six percent of that total came from Blackstone’s $6 billion acquisition of student housing company iQ Student Accommodation, which has been described as the largest-ever private real estate deal in the United Kingdom.

Meanwhile, overall dealmaking activity in the education sector slowed significantly due to COVID-19 shutdowns and concerns about the long-term impact it would have on the sector. Jackim Woods & Co tracked 207 mergers and acquisitions in the education sector during the first six months of the year, down from 242 during the same period last year.

That figure also represents the fewest number of total deals for a six-month stretch since at least the beginning of 2018, the period covered in the report by Jackim Woods & Co.

The overall dip in the number of mergers and acquisitions during the first half of 2020 was due to a steep decline in private equity sponsored deals. According to Rich Jackim, Managing Partner at Jackim Woods & Co, only 41 of the 207 deals closed during the first six months of 2020 were financed by private equity firms or other financial investors. That’s the lowest number of deals closed in the 30-month period the report covered and a 50% decrease compared to the same period in 2019.
Only seven deals in the first six months of 2020 were valued at more than $100 million, and at least two were in the K-12 sector. About 33% of the total transactions had values in the range of $4.5 million to $54.6 million.

The sector of the education industry that saw the most activity in the first half of 2020 was the professional training services category, which rose from 44 to 60 transactions. That accounted for nearly 30% of all deals during the first six months and marked the most transactions closed for the sector since 2018.

Activity in almost every other segment of the education industry tracked by Jackim Woods & Co — aside from the professional training sector — was down compared to the first half of 2019, according to the report. That includes sectors specific to K-12 institutions and the K-12 EdTech space, which includes companies that provide media and software used in schools.

The most interesting K-12 deals during 2020 include
• China Maple Leaf Education System’s $487 million acquisition of Singapore’s Canadian International School;
• K12 Inc.’s $165 million acquisition of Galvanize, a Denver-based company that offers coding boot camp programs; and
• Chegg’s $96 million acquisition of the math problem-solving app Mathway.

If you own an education-related business, including a Title IV vocational school, K-12 school, or EdTech company, and are thinking about selling, we would be delighted to speak with you and help you explore your options.

Contact Rich Jackim, Managing Partner of Jackim Woods & Co at 224-513-5142 or at rjackim@jackimwoods.com.

Private Equity Buyers Are Busy In Education Sector

Private equity investors have shown strong interest in education-focused companies in the last few years, and not just in edtech companies. Several things are responsible for this renewed interest.

• For the last 10 years, digital transformations in the classroom have caused the ed-tech market to soar and have led to an increased interest in all types of education-related investments.
• The U.S. faces a significant skill shortage across the board as our population gets older and as our society emphasizes professional careers over skilled-based careers. This had led to severe shortages in healthcare, the trades, and transportation.
• Approximately 30% of for-profit career colleges or vocational schools went out of business between 2008 and 2016, removing excess capacity from the post-secondary landscape, which led to a resurgence of interest from private equity groups.
• For the last four years, both the Republican administration and the Democratic Congress supported private education, which resulted in an upsurge in funding by federal, state, and local governments.

On top of that, the education industry is very fragmented, with many early childhood centers, career colleges, and training companies still owned by individuals, leaving private equity firms a lot of room for roll-ups to consolidate the industry and realize significant economies of scale.

In addition, the K-12 market has become more complicated, with new technologies rapidly changing the game. So having the right people in charge who know how to design and implement digital learning platforms is increasingly important, representing a unique opportunity for private equity and other tech-savvy investors.  As a result, buyers and investors are spending more and more time developing world-class management teams to ensure their portfolio companies can provide teachers and students with the digital platforms and technical support they need to succeed.

For the past decade or so, buyers have been hesitant to invest in post-secondary education companies — ever since the Great Recession and implementing the Gainful Employment Rule during the Obama administration.  However, things have turned around completely in the last four years for several reasons, including…

• Over 200 poorly run for-profit career colleges closed their doors before the 2017-18 academic year — continuing a long downward trend. But happily, at the well-run schools that survived, enrollment and revenue are rising again.
• The regulatory environment is more favorable because the Gainful Employment Rule has been greatly scaled back – even though it remains on the books for now.
• Most for-profit career schools are demonstrating better results regarding educational outcomes like gainful employment, making them more appealing to investors no matter the level of regulatory oversight.
• The education sector tends to do well in a recession.  In general, post-secondary education does well when the economy slows down and unemployed people go back to schools, so education-related companies are a good hedge against recession in any investor’s portfolio.
• Valuations of early childhood centers, K-12 schools, and career colleges remain reasonable compared to other education sub-sectors like edtech.
• It isn’t just investors who’re interested in this space – lenders have returned as well. For example, Renovus Capital financed the Rasmussen acquisition with SunTrust, CIBC, and Bank of Ireland.  NCK Capital financed its purchase of Tricoci in partnership with Greyrock Capital Group and NBH Bank.

That’s all good news for owners of education-related companies.  Here are just a few of the deals in the education sector over the last few years —

• The Learning Experience, was purchased by Golden Gate Capital Partners Group-backed KinderCare Education, acquired Troy, Michigan-based Rainbow Child Care Center from Quad-C Management.
• Rasmussen College, a healthcare-focused career college system with 10,000 students across 22 campuses, was acquired by Renovus Capital Partners.
• The University of St. Augustine was acquired by Toronto’s Altas Partners in a deal worth $400 million.
• Allied Business Schools, which offers online real estate certification classes, was acquired by Colibri Group and Quad-C Management.
• Chicago-based Tricoci University of Beauty Culture was acquired by Dallas’s NCK Capital.
• Texas County Technical College in Houston, Missouri, was acquired by Arizona College.
• The National Business Institute of Florida was acquired by a private investor.

If you own an early childhood center, a Title IV career college, or a corporate training program and are interested in potentially selling, contact us at 224-513-5142 for a free, confidential, no-obligation discussion about the current market and your options.

About the author: Rich Jackim, the managing partner of Jackim Woods & Co, is an experienced M&A attorney, investment banker, business broker who has sold over 100 businesses.  He is also an education sector entrepreneur who founded and sold a professional training company, so he understands the industry and the sales process from both an owner and a buyer’s perspective. If you are thinking of selling your early childhood center, K-12 school, career college, or training program, he would be happy to speak with you.  His direct dial number is 224-513-5142, and his email is rjackim@jackimwoods.com.

Jackim Woods & Co Advises School Health on Acquisition of Palos Sports

HANOVER PARK, IL – School Health Corporation announced today that it has acquired Palos Sports, Inc., based in Alsip, IL. For over 60 years Palos Sports has been a leading distributor of physical education supplies to school districts, park districts, and Special Olympics programs throughout the United States. Educators and recreational groups look to Palos Sports for innovative sports, recreation and physical fitness products and equipment, as well as for curricula and knowledge to make their programs more impactful and successful.

School Health is the leading national provider of health supplies, services and solutions, serving professionals in educational settings in the fields of Sports Medicine, Health Services, Special Education and Early Childhood. With over 20,000 physical education, recreation and athletic items in stock, Palos Sports’ products and customers complement School Health’s offerings.

“Together, School Health and Palos Sports will boast the nation’s largest offering of health and wellness products to the education market in the areas of Physical Education, Sports Medicine, Health Services, Special Education and Early Childhood,” said Rob Rogers, President, School Health Corporation. “We both seek to improve the health and well-being of students in schools across America. We are pleased that Palos Sports is now part of the School Health family.”

“Palos Sports is a perfect addition to our offerings given that physical education is playing an ever-important role in helping students maximize their learning potential,” said Scott Cormack, Executive Vice President of Business Development and Strategy, School Health Corporation.

School Health Corporation will maintain Palos Sports as a separate company which will continue to operate in Palos’ current facility, supported by Palos’ dedicated employees who will join the School Health organization. The company will operate under the name Palos Sports, a School Health company.  Dan Dunne will continue as president of Palos Sports.

We are very excited to be a part of the School Health team,” said Dan Dunne, President, Palos Sports. “Our team is proud to be a part of School Health’s vison and commitment to the health, development and wellness of all students. Today we start an exciting journey together, combining our talents and knowledge with a great company.”

Rich Jackim, a managing partner at Jackim Woods & Company, advises School Health Corporation on its corporate development activities and arranged the transaction.

About School Health

Since its founding in 1957, School Health has been helping school-based health professionals keep students healthy both physically and mentally. As a national, full-service provider of health supplies and services it serves health professionals in educational settings from pre-school to college; collaborating with customers and advocating for the health of those entrusted in their care. School Health’s comprehensive offering includes health supplies, sports medicine equipment, early childhood products, and special needs aids. The company goes beyond merely supplying products by also providing product support, training, advisory services and exceptional customer care.

About Palos Sports

Palos Sports was founded in 1957. With 60 years of expertise in physical education, Palos Sports provides equipment and curriculum to schools nationwide. The company’s offerings are specifically designed to meet standards set by SHAPE America. The physical education and recreation equipment provider is known for its expert knowledge and individual attention provided to each physical educator, curriculum director, and sports director it serves.

About Jackim Woods & Company

Rich Jackim, Jackim Woods & Company, advises School Health Corporation on its corporate development activities and arranged the transaction.  Jackim Woods & Company provides financial advisory services on mergers and acquisitions to clients nationwide.

Jackim Woods & Co Advises on Acquisition of Computer Tutor Business & Technology Institute

Jackim Woods & Company is pleased to announce that it arranged the sale of Computer Tutor Business & Technology Institute to a private investor. Computer Tutor is a Title IV post-secondary institution that offers business and medical administration programs to students in Northern California.

Computer Tutor Business and Technical Institute is accredited by the Accrediting Commission of Career Schools and Colleges (ACCSC).  It received the ACCSC School of Excellence Award.  The buyer was a former school owner who had sold his very successful allied healthcare school in the Midwest to a private equity group in 2016.

Rich Jackim, a managing partner at Jackim Woods & Company represented both the seller and the buyer in arranging the transaction.  Jackim Woods & Company represents buyers and sellers of Title IV post-secondary colleges and institutions nationwide.

Nationally Accredited, Title IV, Allied Healthcare School – SOLD

THIS OPPORTUNITY IS NO LONGER AVAILABLE.  CALL US TO LEARN ABOUT OTHER NURSING SCHOOLS WE HAVE FOR SALE

2016 Revenues (Est.): $2,400,000         2016 EBITDA (Est.): $343,000
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Investment Highlights:

Established Healthcare & Skilled Trades Programs – Medical Assistant–10 months, Licensed Practical Nurse (LPN)–12-14 months, Certified Nursing Assistant (CNA)–3 months, and HVAC Repair (HVAC)–12 months.

Major Metropolitan Market – The school has two campuses in a major metropolitan area in the Midwest.

High Placement Rates – 73% placement rate for its LPN program in 2015.

Fully Accredited, Title IV Institution – Currently accredited by ACICS and participates in Title IV program. Changing accrediting agencies to ACEN.

Excellent 90/10 Rate – The School’s 2015 90/10 rate was 60%.

Background:

Our client is a nationally accredited, Title IV allied healthcare career school established in 1997. The school offers allied healthcare and skilled trades programs. In 2016 the school has a total enrollment of over 300 students who attend the school’s two campuses located in a major metropolitan market in the Midwest. The school’s largest program is its licensed practical nurse (LPN) program with approximately 192 students which represents approximately 64% of school’s total tuition received.

Based on internal financial results through May 2016, management expects 2016 annualized revenues to be approximately $2.4 million and adjusted EBITDA to be $343,000. This is up 15% and 78% respectively from 2015.

The school is accredited by ACICS however management is in the process of changing accreditation to ACEN which they anticipate will be received before the sale is complete. The school’s founders have some minor health issues and are interested in retiring, however, they are willing and able to work with the buyer for a reasonable transition period or as consultants afterward.

Additional information is available to qualified principals upon receipt of a signed nondisclosure agreement attached. Download Client Profile and Nondisclosure Agreement.

Please contact Richard Jackim at (224) 513-5142 or rjackim@jackimwoods.com with any questions.