How Jackim Woods & Co. Protects Your Confidentiality When You Sell Your Business

When you decide to sell your business, you face an immediate and uncomfortable paradox: to attract the right buyer and command a premium price, you must share sensitive information about your company — but doing so too early, or with the wrong people, can destabilize the very asset you’re trying to sell.

Employees may start updating their résumés. Key customers may test alternatives. Competitors may use the news to poach your best people or approach your top accounts. And a buyer who senses urgency or disruption will use it to negotiate a lower price.

Confidentiality isn’t an afterthought in a business sale. It’s a core value-protection strategy — and managing it requires both process discipline and legal sophistication.

At Jackim Woods, we bring both. I spent years as an M&A attorney at White & Case before founding this firm, so I understand confidentiality not just as a deal management practice but as a legal and contractual discipline. Here’s exactly how we protect you throughout the sale process.

Why Confidentiality is So Important

Before getting into our process, it helps to understand what’s actually at risk when confidential information gets out during the sale process.

Employees react fast.

A rumor that the business is for sale can trigger voluntary departures — particularly among your key managers, sales people, and technical specialists — before you have a retention plan or a transition story in place. Buyers pay close attention to team stability. One unexpected resignation during due diligence can reduce the value of your business or create deal conditions you didn’t anticipate.

Customers may hedge.

Relationship-driven businesses are especially exposed. If a major account hears that your company may be for sale that could delay a big order, a contract renewal, or simply ask questions you’re not yet in a position to answer. Any disruption to your revenue during a sale process is one of the fastest ways to lose negotiating leverage.

Competitors and suppliers will act on the information.

A competitor doesn’t need to know the buyer, the price, or the timeline to move against you. They only need to know you’re distracted. They may bring in up when meeting with your customers in an attempt to get a foot in the door.  Suppliers may tighten payment terms. Channel partners may revisit exclusivity arrangements. All of that creates noise in your financials and your story at exactly the wrong moment.

Buyers will discount the value of your business.

If any of the above occurs, a serious buyer will notice — and will use it. Lower purchase price, larger escrow holdbacks, more seller financing, stricter non-compete terms. Confidentiality failures have direct, quantifiable financial consequences.

How Jackim Woods Protects Your Confidentiality — Step by Step

Step 1: Anonymous Marketing with a Blind Teaser

We never identify your company during the initial phase of buyer outreach. Instead, we prepare a blind teaser — a one-page anonymous profile that describes the opportunity in terms of industry, geography, revenue range, EBITDA, business model, and key strengths — without revealing your company name, exact location, employee identities, or any detail that would allow a competitor or supplier to reverse-engineer your identity.

This gives us broad market exposure to identify the right buyers while keeping your identity fully protected until a buyer earns access through our screening process. A poorly constructed teaser can inadvertently identify a company through a combination of niche service descriptions, unusual geography, and recognizable customer patterns. We draft teasers carefully to prevent this.

Step 2: Buyer Screening and Financial Qualification

A confidentiality leak almost always traces back to the wrong party getting access too early. Before any identifying information is shared, we screen every prospective buyer for financial capability, strategic fit, acquisition intent, and deal timeline.

We build a targeted buyer universe of 150 to 200 potential acquirers using a structured framework based on Porter’s Five Forces — covering direct competitors, customers who might want to vertically integrate, suppliers who might want to move downstream, adjacent businesses, and financial buyers including private equity groups. From that universe, we identify the highest-probability acquirers before any contact is made.

Screened buyers register through us — not directly with you — which creates a documented, traceable record of who has received what information and when. This protects you legally if a breach of confidentiality issue arises later.

Step 3: A Professionally Drafted NDA — Before Anything Identifiable Is Shared

No buyer receives your company name, financial details, or any identifying information until they have signed a mutual non-disclosure agreement. Having drafted and negotiated hundreds of these agreements as an M&A attorney, I know where standard NDAs fall short.

A well-drafted NDA should do several things that generic templates often miss:

• Define confidential information broadly — financials, customer lists, employee information, pricing, and proprietary processes
• Restrict use of shared information to deal evaluation only
• Prohibit the buyer from contacting your employees, customers, suppliers, or landlord without your authorization
• Require return or destruction of materials if discussions end
• Bind the buyer’s advisors — lenders, accountants, attorneys — to the same obligations

An NDA is not a complete solution on its own. Enforcement is reactive — by the time you’re pursuing a legal remedy, the damage to your business relationships may already be done. That’s why we pair every NDA with the staged disclosure process described below.

Step 4: Staged Disclosure Tied to Buyer Seriousness

Information is released in layers as buyer credibility increases. This is the most reliable way to maintain confidentiality while still allowing a serious buyer to conduct a meaningful evaluation.

Our CIMs are deliberately more comprehensive than what most M&A advisors produce — typically 12 to 20 pages rather than a thin broker summary. This means serious buyers get the depth they need to move forward confidently, while casual or unqualified parties are screened out before reaching this stage.

Step 5: Controlled Due Diligence Through a Virtual Data Room

Due diligence is when the most sensitive information about your business is shared — and when confidentiality discipline matters most. We manage this through a structured virtual data room where we control who has access, which documents are available at each stage, and when access is granted or revoked.

This prevents the common problem of an overeager buyer or their advisor pulling documents that shouldn’t be released until later in the process — and ensures that if a deal falls apart, sensitive materials aren’t sitting unsecured in someone’s inbox.

Step 6: Planning Your Employee and Customer Communications

We help you think through the right timing and messaging for internal disclosures before you need to make them. In most transactions, broad employee notification happens after major deal terms are agreed upon — not at the start of the process. But planning that communication early prevents improvisation under pressure, which is where messaging mistakes happen.

We help you identify which employees are critical to notify early (and with what message), which key customers may need reassurance before closing, and how to frame the ownership transition in a way that preserves relationships and morale.

Common Confidentiality Mistakes to Avoid

Even sophisticated sellers can undermine their own confidentiality protections. The most common mistakes we see:

• Sharing financial details before screening a buyer. Sending tax returns or customer concentration reports to anyone who expresses interest — without verifying their identity, financial capacity, and intent — is the single most common source of leaks.
• Relying on the NDA alone. An NDA creates legal exposure for a buyer who misuses your information. It does not prevent them from misusing it in the first place. Process discipline is the real protection.
• Including too much identifying detail in the teaser. A teaser that mentions a rare niche service, a specific headcount, and a recognizable local customer base may effectively announce the sale without using your name.
• Telling employees too early and without a plan. Well-intentioned transparency before you have a transition message, a retention plan, and a closing timeline creates anxiety you can’t walk back.
• Not tracking data room access during due diligence. If you can’t document who saw what and when, you have no basis for a confidentiality claim if information is misused.

Frequently Asked Questions

Your EBITDA Is Strong. But Is Your Business Sellable?

Strong EBITDA is necessary but not sufficient to sell a business — buyers scrutinize the quality and durability of earnings, not just the headline number.

A company with $13M in revenue and $5M in EBITDA failed to sell after a year on the market because two structural risks — 45% revenue dependence on a single distribution channel and 16% revenue from one customer — triggered valuation disputes, and the deal fell apart during due diligence.

A concentrated revenue base, even at strong margins, creates deal risk that sophisticated buyers will find and price against. Businesses where any single customer accounts for 5% or more of revenue, where revenue flows through a single channel or relationship, or where recurring revenue is minimal , face a high likelihood of a buyer wanting to renegotiate the deal during due diligence. A professional market assessment — reviewing financials, revenue composition, customer concentration, and competitive positioning — is the critical first step before going to market, and is the most reliable way to avoid surprises that kill deals.

— Rich Jackim, Jackim Woods & Co.

Your EBITDA Is Strong. But Is Your Business Sellable?

Every business owner considering selling their business deserves a clear-eyed assessment of one foundational truth: EBITDA is a critical metric, but it does not tell the complete story. Owners who discover this after months of trying to sell their business — or after a deal fails during due diligence — will have wasted a lot of time and money.

The following is a situation we have seen multiple times in our practice. The details have been modified for confidentiality, but the dynamics are real—and offer important insights for any owner thinking about an exit.

A Business That Looked Great on Paper

Last year, we spoke with the owner of a business services company who had spent twenty years building his business. Now 65, he was ready to retire and sell the company. The financial profile was attractive: approximately $13 million in revenue with $5 million in EBITDA – strong margins that would get buyers’ attention.

Early in the process, the owner’s CPA reviewed the financials and told the owner the company was probably worth $25 million – exactly what the owner wanted to hear.  The CPA explained that the EBITDA was there, and in his experience, companies like this one sold for 5x EBITDA. The owner felt confident, so he hired an M&A advisor to sell the business.  After a year on the market, two buyers had withdrawn their offers during due diligence, and the business was still not sold.

Strong EBITDA opens doors. But what buyers find when they look inside determines whether a deal actually closes.

What the Financial Analysis Revealed

When buyers started their due diligence, they discovered the company’s revenue composition contained concentration risks that ultimately derailed the deal:

Revenue channel concentration: 45% of total revenue was generated through a single distribution channel, a key salesperson, who was the same age as the business owner. While that salesperson had performed reliably for years, the fact that the company depended on someone so close to retirement age was a structural dependency that concerned sophisticated buyers.

Customer concentration: 16% of revenue was attributable to one customer, a large manufacturer with multiple locations. This indicated a customer concentration issue that affected lending eligibility and the buyer’s financing options, which in turn affected the overall risk profile of the deal.

These were not deal killing factors individually. But collectively, they represented risks that sophisticated buyers identified in due diligence, and in one case, used to try to negotiate a huge valuation adjustment (50%) — or in the other case, as grounds to exit the process entirely.

When Market Conditions Validated a Buyer’s Analysis

What ultimately killed the deal was during due diligence, an external event occurred that demonstrated precisely why concentration risk demands early attention.

The company received formal notification that its largest customer — representing 16% of annual revenue — had been acquired by a direct competitor. As part of the acquirer’s vendor consolidation strategy, they provided notice that they would be scaling back their purchase orders over the next six months, with the goal of consolidating all purchase orders with the new parent company’s vendors.

The impact was immediate and material. Sixteen percent of the company’s revenue had just disappeared and could not easily be replaced. The seller’s valuation and negotiating position was now fundamentally changed by a single event outside of their control.  This is exactly what buyers feared, and it had come true.

The Strategic Lesson for Owners Selling Their Businesses

Advisors who do not earn success fees when a transaction closes have limited incentive to tell clients the hard honest truth about their client’s business. The result is that business owners often try to sell their business without a clear understanding of how buyers will evaluate their company — and without the opportunity to fix those risk factors before they become deal killers.

As the above example demonstrates, EBITDA matters a lot. But experienced buyers will also be looking at the quality and durability of those earnings:

• Does any single customer represent more than 5% of a company’s revenue?
• Is revenue dependent on a single channel, platform, or relationship that could be disrupted?
• Is revenue generated from one product or service, or diversified over a wide range of products and services?
• Is there industry concentration risk with services or products serving only one industry?
• How much of the revenue base is genuinely recurring, contracted, or relationship-protected versus transactional?
• How is the business positioned relative to industry transformation — as an adopter or as a laggard?
• How would EBITDA be affected if the single largest customer or channel relationship were impaired?

These are the questions that determine whether reported EBITDA represents durable, transferable earnings—or a business that will be systematically discounted during the diligence and negotiation process.

The Question Every Owner Should Ask Before Selling Your Business

It is not simply “What is my EBITDA?”

The more important question is: “Do my revenue and EBITDA accurately reflect the risk-adjusted financial performance of my business?”

That is precisely what a professional market assessment and business valuation is designed to answer. Not to produce an optimistic number, but to give you the honest, complete picture that enables you to maximize transaction value and approach the market from a position of knowledge rather than a host of assumptions.

Why a Free Market Assessment Increases Your Options when Selling Your Business

At Jackim Woods & Co., our complimentary market assessments are designed to give business owners the analytical foundation they need before making one of the most consequential financial decisions of their lives.

We review of your financials, revenue composition, customer and channel concentration, competitive positioning, and provide you with the realistic range of values a qualified buyer would assign to your business. It means identifying the factors that could affect a transaction — and giving you to option to address them before you go to market.

Business owners who understand their true market value make better decisions: about timing, about preparation, about which buyer profiles to target, and how to position the company’s story. They do not spend months pursuing a process that was unlikely to succeed. And they are not surprised by what buyers find.

If you are considering a sale — even if your timeline is one to three years out — an objective assessment of where your business stands today is the most valuable step you can take.

Please note:  Because of the time and effort that goes into to preparing a market assessment, free market assessments are only available for businesses generating at least $5 million in revenue or $1 million in EBITDA.

About Jackim Woods & Co.

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

For the last 25 years, Rich has been providing boutique investment banking services to small and lower middle-market companies in a wide range of industries across the United States and Canada.

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 companies in both sell-side and buy-side transactions. Jackim Woods & Co has arranged over 120 successful transactions, ranging from one million to more than eighty million dollars in value.

If you own a 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.

Jackim Woods & Co. Leads Buy-Side Roll-Up in the CDL Training Sector

When a large Title IV vocational college set out to acquire multiple commercial-driver-license (CDL) training schools, they turned to Jackim Woods & Co. for a focused, results-driven buy-side campaign — and we delivered. Below is how we helped them navigate complexity, act with speed, and close acquisitions that strengthen their national footprint.

What the Mandate Was

Our client’s objective was to acquire one or more high-quality CDL training providers in key U.S. states, to build scale quickly as part of a national roll-up strategy. Their criteria were strict: geographic location, size, proximity to major airports (for future logistics), and the potential for seamless integration into a growing national CDL division.

Our client had a regulatory and strategic mandate to close by end of 2025, and to hit a combined CDL-division revenue target of at least $6 million. By working swiftly and eliminating unnecessary delays, we met those targets, positioning our client for full compliance — and for accelerated growth.

Our role at Jackim Woods & Co. was to represent the buyer, source targets, and manage the acquisition process from first outreach through closing.

The first CDL acquisition we helped them close was CL Driving Academy — a premier commercial driver training center located in Charlotte, NC. Three months later, we helped them acquire Apex Technical Institute, a leading CDL school in Kansas City, KS.

How We Worked: Our Value-Added Buy-Side Process

1. Highly Targeted & Data-Driven Deal Sourcing
   We began with a broad universe — roughly 693 potential CDL school targets — then filtered that down to around 300 that met our client’s criteria (geography, size, infrastructure, airport proximity, and more). This data-driven screening ensured that we spent the client’s time on only the most promising candidates.
2. Proactive Outreach & Seller Engagement
   Using a mix of personalized emails and phone outreach, we contacted each owner/operator in the filtered target list. That initial campaign produced 15 schools interested in further discussion.
   We then conducted introductory calls with 12, arranged six conference calls between our client and potential sellers — and helped formulate offers on two schools
3. Fast, Focused Execution & Negotiation
   In the case of CL Driving Academy, our campaign from first contact to closing wrapped up in just 92 days.

   For Apex Technical Institute, the process took 184 days — a slightly longer timeline because we needed to negotiate a post-closing employment contract with the owner to assume a leadership role and manage our client’s multi-state CDL division.

4. Strategic Integration Planning (Owner-Operator Retention)
   Recognizing the importance of leadership continuity in a roll-up, we helped our client identify a strategic leader who could help them manage their growing CDL division. negotiate a deal structure that retained the prior owner of Apex Technical Institute — bringing him in as Divisional Vice President for the new national CDL business. This eased transition, preserved institutional knowledge, and boosted the credibility of the combined enterprise.

Outcome & What It Means

Thanks to our buy-side advisory, our client successfully acquired two high-quality CDL training schools, giving them an immediate multi-state presence in a consolidating industry. More importantly, they gained not just assets — but operational leadership and a scalable platform for future acquisitions.

From a strategic perspective, this gives them:

• A streamlined path to national scale in the fragmented CDL training market.
• Operational leverage via back-office and administrative consolidation.
• Enhanced negotiating power with large carriers or employers seeking to hire CDL-trained graduates.
• A foundation to continue roll-up efforts — strengthened by credibility, cash capital, and a proven acquisition process.

Why Jackim Woods & Co. Was the Right Partner

Our success hinged on combining deep domain expertise with disciplined process execution:

• We know the vocational education and CDL-training sector — enabling us to build immediate credibility with school owners.
• We executed a comprehensive, data-driven target search — not a scattershot approach.
• We engaged directly and persistently with owners, building trust and opening doors for negotiation.
• We drove speed without sacrificing due diligence or post-closing strategy.

If you’re a buyer seeking to acquire assets in a fragmented sector — whether education, vocational training, logistics, or other specialized services — we offer a proven, structured buy-side process that gets results.

Meet the Dealmaker Behind the Strategy

Richard Jackim is founder of Jackim Woods & Co and the head of our education group. A former Wall Street attorney and bulge-bracket investment banker, Richard has advised on over 120 transactions totaling more than $2.3 billion in market value. Since he founded the Exit Planning Institute and sold it in 2012, he has focused on privately-held small and mid-sized companies in the education sector — including vocational schools, training and certification providers, edtech companies, and niche educational assets. He is a frequent author of white papers on education M&A and has spoken at industry summits.

Contact us to Learn More

If you represent a private equity firm, vocational college, or strategic buyer — and considering making an acquisition in education, training, or other specialized sectors — reach out. We’ll build a tailored buy-side acquisition campaign designed to move with speed, discretion, and strategic clarity.  Contact: Rich Jackim at rjackim@jackimwoods.com

The New SBA Landscape in 2025: How Recent Policy Changes Are Reshaping Business Acquisitions

The Small Business Administration’s recent policy overhaul has fundamentally altered the business acquisition financing landscape, creating new challenges and opportunities requiring strategic adaptation from buyers and sellers.

The Policy Shift: From Flexibility to Financial Discipline

In April 2025, the SBA implemented sweeping changes, reversing the previous administration’s “Do What You Do” underwriting standards that had been in place since 2021. These changes came in response to a critical financial situation: the 7(a) loan program recorded its first negative cash flow in 13 years, with losses reaching $397 million in fiscal year 2024.

The new Standard Operating Procedure (SOP 50.10.8), effective June 1, 2025, represents a return to the stricter underwriting criteria that previously kept the program financially stable and self-sustaining through lender fees.

Key Changes Impacting Business Acquisitions

Enhanced Underwriting Requirements

The updated rules have restored rigorous credit analysis processes, requiring lenders to apply the same scrutiny to SBA-guaranteed loans as they would to conventional commercial lending. This includes enhanced citizenship and ownership verification requirements, stricter debt service coverage ratios, and more comprehensive financial documentation.

Seller Financing Restrictions Create New Challenges

Perhaps the most significant impact on business sales involves the new limitations on seller financing arrangements. Under the current rules, seller notes can now cover only 50% of the required buyer equity injection, typically 10% of the total project cost. This effectively means seller financing can represent just 5% of the transaction value.

More restrictively, qualifying seller notes must remain on “full standby” throughout the entire SBA loan term—often 10 years—with no principal or interest payments. This arrangement essentially converts seller financing into an unsecured, zero-interest loan, significantly reducing its attractiveness to business owners.

Personal Guarantee Requirements Intensify Risk

Any seller retaining even minimal equity ownership must now personally guarantee the entire SBA loan for a minimum of two years. This provision closes previous loopholes and ensures all parties maintain substantial financial exposure in the transaction. This will make it very unattractive for sellers to retain any equity in the businesses they are selling.  This seems counterproductive, since the traditional view has always been that a seller retaining equity helps ensure the success of the business and the buyer, which helps ensure repayment of the SBA loan, and therefore benefits everyone.  But this rule change effectively eliminates that option.

Structural Requirements Shift Tax Implications

All partial ownership transfers must now be structured as stock sales rather than asset sales, introducing new tax considerations and liability implications that require careful legal and tax planning.

Market Impact: The Numbers Tell the Story

The effects of these changes are already measurable in the marketplace. Recent industry surveys reveal that 41% of business brokers report transaction delays directly attributable to the new SBA policies. Supporting this trend, the average time to close business sales increased by 30 days year-over-year in the second quarter.

This creates a challenging environment given the existing disconnect between buyer expectations and seller expectations. While 62% of buyers expect seller financing as part of their acquisition strategy, only 23% of sellers are willing to offer it under the new restrictive terms.

Perhaps most concerning for market participants: while 68% of surveyed buyers are considering SBA financing for their acquisitions, more than half (55%) remain unaware of these significant regulatory changes.

Strategic Recommendations for Buyers and Sellers

For Business Sellers

Working with experienced advisors has never been more critical. Sellers should understand that certain structuring approaches can mitigate some restrictions. For instance, seller financing provided in addition to (rather than as part of) the buyer’s equity injection may not be subject to the same standby requirements, potentially allowing for more favorable terms.

Realistic pricing becomes essential in this environment. As financing options become more constrained, businesses must be competitively priced to attract serious buyers who can meet the enhanced equity requirements.

For Business Buyers

Preparation and financial readiness are paramount. The days of relying heavily on seller financing to bridge equity gaps have ended. Successful buyers in this environment will need to demonstrate substantial capital availability and obtain pre-qualification from SBA lenders before entering the market.

The ability to move quickly when opportunities arise has become a competitive advantage. Buyers who can present proof of available cash and pre-approved financing will have significant advantages in negotiations.

Industry Expert Perspective

Rich Jackim of Jackim Woods & Co. says these changes emphasize the importance of buyer preparedness: “There is a great deal of demand for solid, performing businesses—those that are profitable, have experienced employees, are not owner dependent, and are reasonably priced. Don’t start your conversation with the seller or his broker by asking, ‘Will the seller provide any seller financing?’  Ninety percent of the time, the answer will be ‘no,’ and you lose credibility as a qualified buyer.”

Jackim continues, “To improve your chances of winning the deal, get your financing in order before you start your search, so when you find a great business you can include proof that you have the financing lined up to close a deal. This immediately proves to a seller that you are serious, qualified, and have a high probability of closing, which in turn increases your negotiating leverage.”

Looking Forward: Adaptation and Opportunity

While these changes create immediate challenges, they also represent a return to financial discipline that should strengthen the long-term viability of the SBA lending program. The restrictions, though stringent, aim to protect taxpayers while maintaining access to capital for qualified small business acquisitions.

Success in this new environment requires understanding that deal structure has become more critical than ever. Both buyers and sellers must work closely with experienced advisors who understand the nuances of the updated regulations and can identify creative solutions within the new framework.

The market will likely adapt, with pricing and expectations adjusting to reflect the new financing realities. Those who prepare early and understand the new rules will be best positioned to capitalize on opportunities in this evolving landscape.

About the Author and Jackim Woods & Co.

Rich Jackim is an investment banker, 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 a wide range of industries across the United States and Canada.

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 companies in both sell-side and buy-side transactions. Jackim Woods & Co has arranged over 120 successful transactions, ranging from less than one million to more than eighty million dollars in value.

If you own a 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.

This article is also available on LinkedIn.

The Skills Gap Crisis: Why Small Colleges Must Act Now or Risk Obsolescence

The Enrollment Cliff Is Here—And It’s Accelerating

Small colleges across America are facing an existential crisis. Enrollment at institutions with fewer than 2,000 students has plummeted by an average of 35% since 2010, with some schools losing more than half their student body. The reasons are stark: declining birth rates, soaring tuition costs, and perhaps most critically, a fundamental shift in how students and employers view the value of traditional liberal arts education.

But here’s the uncomfortable truth that most college presidents and board members are reluctant to acknowledge: students aren’t just leaving because college is expensive—they’re leaving because traditional degrees no longer guarantee career outcomes.

In 2024, 94% of students said they wanted micro-credentials and industry certifications to count toward their degrees, up from just 55% the year before. Meanwhile, 85% of employers now say they’re more likely to hire candidates with specific vocational credentials than those with only traditional liberal arts degrees. The message is clear: the market has spoken, and it’s demanding skills-based education.

For small colleges still operating under the old playbook, this represents an adapt-or-die moment. But for those willing to act strategically, it also represents the greatest growth opportunity in higher education today.

The Liberal Arts Paradox: Essential Skills, Unemployable Graduates

Don’t misunderstand—the core value proposition of liberal arts education remains powerful. Critical thinking, communication, analytical reasoning, and cultural literacy are more important than ever in our complex global economy. The problem isn’t that these skills are worthless; it’s that they’ve become invisible to employers who lack the time or framework to recognize them.

When a hiring manager sees a resume with a philosophy degree, they don’t automatically think “excellent analytical thinker who can solve complex problems.” They think “unemployable idealist who can’t contribute to the bottom line.” This perception gap has created a vicious cycle: students avoid liberal arts programs because they fear unemployment, employers continue to overlook liberal arts graduates because they see so few of them, and colleges respond by desperately trying to make their programs more “practical”, often in superficial ways that satisfy no one.

The solution isn’t to abandon liberal arts education. It’s to combine it with immediately recognizable, market-validated credentials that make those essential liberal arts skills visible and valuable to employers.

The Vocational Micro-Credentials Revolution: A $1.9 Billion Opportunity

The vocational micro-credentials market is exploding, projected to reach $1.9 billion by 2029. But this isn’t just about digital badges or online certificates, it’s about a fundamental restructuring of how education creates value.

Here’s what’s driving this transformation:

Students want stackable credentials that prove they have job-ready skills. Students are no longer willing to commit four years and six figures to a degree that might not lead to a career of their choice. They want to see career progress year by year, with credentials they can use immediately while building toward a full degree, and ultimately, lots of career options.

Employers are willing to pay for skills-based training. Companies now spend billions of dollars a year on workforce development, and they’re increasingly eager to partner with educational institutions that can deliver job-ready skills at scale.

Credit recognition is becoming universal. More than 30 professional certificates now carry formal credit recommendations from accreditation bodies, making them truly stackable toward traditional liberal arts degrees.

For small colleges, this represents a massive opportunity—but only if they act quickly and strategically.

The Acquisition Imperative: Why Organic Growth Isn’t Enough

Most small colleges are approaching the skills gap crisis through partnerships with platforms like Coursera or by adding a few “practical” courses to their existing curriculum. This is “too little, too late” and will prove fatal for many institutions.

Platform partnerships sound appealing because they require minimal upfront investment, but they’re actually a trap. When students enroll in a Google certificate through Coursera, Google gets the brand recognition and career outcome credit, not your college. You become a facilitator in someone else’s ecosystem, competing on price rather than value, with no control over the student experience or employer relationships.

Organic program development is equally problematic. Small colleges lack industry connections, employer relationships, and specialized faculty needed to create truly job-relevant programs. By the time you’ve developed new curricula, hired qualified instructors, and built employer partnerships, market demand will have shifted to new skills.

The optimal strategy is to acquire an established for-profit vocational school.

The Strategic Acquisition Model: Liberal Arts + Vocational Training

The most successful higher education institutions of the next decade will be those that combine the depth and breadth of liberal arts education with the immediate market relevance of vocational training. This isn’t about creating a “vocational track” within your existing college, it’s about acquiring an established vocational college and integrating it strategically.

Here’s why acquisition makes sense:

Immediate Market Access

For-profit vocational schools already have employer relationships, industry partnerships, and job placement networks that take traditional colleges years to develop. When you acquire a vocational school, you’re not just buying facilities and equipment, you’re buying market access.

Proven Revenue Models

Successful vocational schools operate on fundamentally different economics than traditional colleges. They charge premium prices for in-demand programs, maintain high job placement rates, and often have waiting lists for enrollment. This cash flow can stabilize your institution while you integrate programs.

Complementary Student Populations

Vocational schools serve students who might never consider traditional four-year programs—working adults, career changers, first-generation college students. By combining liberal arts and vocational programs, you can serve both populations while creating pathways between them.

Stackable Credential Architecture

The most powerful integration model allows students to earn industry credentials as they progress through liberal arts programs, or to add liberal arts depth to vocational training. A traditional biology major could graduate with a Bachelor of Science degree and a certificate in diagnostic medical sonography. A traditional business major could graduate with a Bachelor’s in Business and technical certifications in cybersecurity. Think of the career opportunities these kinds of students have over traditional students.

Case Study: Successful Liberal Arts + Vocational Integration

Hilbert College, a small, private, non-profit Catholic college, recently acquired Valley College, a for-profit vocational school with campuses in Ohio and West Virginia. This move allows Hilbert to expand its online offerings and potentially increase enrollment by tapping into Valley College’s existing student base. It also allows liberal arts students to graduate with certificates or diplomas as practical nurses, medical clinical assistants, veterinary assistants, or veterinary technicians.  It also enabled Hilbert to offer over a dozen online vocational programs in business, cybersecurity, healthcare, and IT to students in 49 states, greatly expanding Hilbert’s traditional reach, At the same time, the merger allows Valley College’s vocational school students to continue their education by earning an Associates or Bachelor’s degree at Hilbert with programs in over 50 different subject areas.

The Integration Playbook: Making the Marriage Work

Acquiring a vocational school is only the first step. Success requires thoughtful integration that preserves the strengths of both institutions while creating new value. Based on our experience advising higher education M&A transactions, here are the critical success factors:

Preserve Distinct Brand Identities Initially

Don’t rush to rebrand everything under one umbrella. Vocational schools often have strong employer relationships built around their specific brand and reputation. Maintain these relationships while gradually introducing the liberal arts value proposition.

Create Clear Pathways, Not Forced Integration

Students should be able to move between programs naturally, but don’t force artificial combinations. A welding student might benefit from business communication training but probably doesn’t need art history. Focus on complementary skills that enhance career outcomes.

Leverage Cross-Faculty Collaboration

Your liberal arts faculty can provide valuable perspective on critical thinking, communication, and ethics to vocational programs. Meanwhile, vocational instructors can ground theoretical liberal arts concepts in real-world applications.

Maintain Employer Relationships as Strategic Assets

The vocational school’s employer partnerships are among your most valuable acquired assets. Nurture these relationships and gradually introduce the expanded capabilities of your combined institution.

Financial Modeling: The Economics of Educational Transformation

Map of Private Non-profit College Closures

The financial case for strategic acquisition is compelling, but it requires sophisticated modeling that accounts for multiple revenue streams and integration costs. Key considerations include:

Revenue Synergies: Combined institutions can command premium pricing for integrated programs, serve broader student populations, and access new funding sources including employer partnerships and workforce development grants.

Cost Efficiencies: Shared administrative functions, facilities optimization, and combined marketing can reduce per-student costs significantly.

Risk Mitigation: Diversified revenue streams reduce dependence on traditional enrollment, providing stability during demographic transitions.

Growth Capital: Improved cash flow from vocational programs can fund expansion of liberal arts offerings or acquisition of additional specialized schools.

Contact our team for a confidential consultation regarding detailed financial modeling for your institution’s specific situation.

Case Study: A Student’s Portfolio

One of Jackim Woods & Co’s clients, a very successful, fast growing vocational school in Pennsylvania, is a model for colleges of the future.  This for-profit, degree granting institution has 17 programs leading to Associates degrees.  As a student move through their two year program, they complete their general education classes and vocational classes at the same time.  As they learn job-ready skills they earn certifications that go into the student’s portfolio, or “brag book” as the students call it.  Here’s how it works.  A student studying in one of the school’s allied healthcare programs might earn a third-party certificate in CPR and basic life support, then a certificate in phlebotomy, then a certificate in healthcare terminology, and then a certificate in electric healthcare record keeping.  When they graduate, each student’s brag book will contain their diploma, an official transcript, and a dozen or more skill-based certificates. Students have a 90%+ placement rate upon graduation. The school has a board of local employers who help them decide which certificates are important to include in each program. The cost of these tests and certificates are built into the school’s tuition so there is no extra cost to students.  This creates a seamless connection between the school, student, and employer needs.

The Competitive Landscape: First-Mover Advantages

The window for strategic acquisition of quality vocational schools is narrowing rapidly. As more traditional colleges recognize this opportunity, competition for the best targets will intensify, driving up valuations and reducing availability.

Early movers have significant advantages:

• Better acquisition targets are available now at reasonable valuations
• Less competition for quality vocational schools
• More time to execute integration before market pressures intensify
• Stronger market positioning as education evolves

Colleges that wait will find themselves choosing from less attractive targets at higher prices, or worse, competing directly with institutions that have already completed successful integrations.

Beyond Survival: Building Tomorrow’s Educational Powerhouses

This isn’t just about saving colleges, it’s about building the educational institutions that will dominate the next generation of higher education. The colleges that combine liberal arts depth with vocational relevance will enjoy:

• Premium pricing power for differentiated offerings
• Diverse revenue streams, reducing enrollment risk
• Strong employer relationships driving job placement and reputation
• Broader student appeal across demographic and economic segments
• Strategic flexibility to adapt to changing market demands

The question isn’t whether higher education will evolve—it’s whether your institution will lead that evolution or be left behind.

The Path Forward: Strategic Planning for Educational Transformation

College presidents and board members who recognize the urgency of this moment have a clear path forward:

1. Assess your current position honestly, including enrollment trends, financial stability, and competitive positioning
2. Identify strategic acquisition targets that complement your liberal arts mission while providing immediate market relevance
3. Develop integration planning that preserves institutional strengths while creating new value
4. Secure stakeholder buy-in from faculty, alumni, and community partners
5. Execute with experienced guidance to ensure a successful transaction and integration
6. Engage an Expert M&A Advisor to help you objectively assess and address each of these points.

The institutions that act decisively now will not survive—they will thrive for decades to come.

Take Action: Your Institution’s Future Depends on It

The data is clear, the trends are accelerating, and the window to take action is narrowing. Small colleges that fail to adapt to the skills-based education revolution will continue to lose students, struggle with finances, and ultimately face closure.

But those willing to act boldly have an unprecedented opportunity to transform their institutions into thriving, market-relevant educational powerhouses that serve students, employers, and communities better than ever before.

At Jackim Woods & Co., we’ve helped dozens of higher education institutions navigate strategic transformations through carefully planned mergers and acquisitions. As one of the most active and creative financial and M&A advisors to higher education institutions, we understand both the urgency of your situation and the opportunities available to forward-thinking leaders.

Rich Jackim and Jackim Woods & Co.

Rich Jackim is an education industry investment banker, education 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 created the Certified Exit Planning Advisor (CEPA) designation and the executive MBA-style CEPA training program.

Rich is also the author of the critically acclaimed book, The $10 Trillion Dollar Opportunity: Designing Successful Exit Strategies for Middle Market Businesses, as well as dozens of articles on mergers and acquisitions, business valuation, and exit planning.

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.

Other Articles by Rich Jackim That You Might Enjoy

Acquisitions in the Education & EdTech Sector in 2025

Acquisitions in the Education and Edtech Sectors in 2024

Acquisitions in the Education and EdTech Sector in 2023

Acquisitions in the Education & EdTech Sector in 2025

Acquisitions in the Education and Edtech Sectors in 2025

The following is a summary of mergers and acquisitions transactions expected in the education and edtech sectors in 2025. This article will be updated every two weeks as we work with more clients and learn of other deals in the sector.

The education and edtech sectors experienced a slow start in 2024. Many smaller deals in 2024 fell apart during due diligence. Rising interest rates created anxiety around borrowing costs caused buyers to require a higher return on their investment and depressed valuations.

Investors were still recovering from the bad decisions they made during the COVID pandemic. Most EdTech investors have adopted a more cautious approach after making investments at inflated valuations during the COVID era. Post-COVID, many segments of the education sector have been shaken up due to increased regulation of for-profit Title IV vocational colleges and concerns about the expiration of ESSER funds.

As a result, valuations for small, medium, and large edtech companies have returned to pre-COVID levels, although they are still higher than valuations for traditional businesses. The average small and medium-sized edtech company is valued at 2x to 3x trailing twelve-month annual recurring revenue.

Reported Acquisitions in the Education and Edtech Sectors in 2025

Below is a summary of the mergers and acquisitions transactions in the education and edtech sectors in 2025. This is not an exhaustive list, as many smaller transactions are never announced. This list represents the deals we have learned about through our network or that we are directly involved in, and will be updated every two weeks.

In October,

• Learning Pool, a UK-based digital learning provider, acquired WorkRamp to strengthen its presence and market reach in the United States.
• K12 Coalition, a US-based educator support solutions provider, acquired Keys to Literacy and Professional Development Institute to drive positive student outcomes.
• OWNA, an Australian childcare management platform, acquired Juice Technologies to expand its offerings in the early childcare space.
• Imagine Learning, the largest national provider of digital-first curriculum solutions, acquired EarlyBird, a dyslexia screener and early literacy assessment tool for students in PreK–Grade 3.

In September,

• Ignite Reading, a virtual tutoring program, acquired Esteam to enhance its services and provide better support for students struggling with reading.
• QGenda, a healthcare workforce management company, announced the acquisition of New Innovations, the industry’s largest provider of residency management software. New Innovations’ specialized software is used by hospitals and health systems to manage all aspects of their physician graduate medical education programs. This acquisition expands QGenda’s existing healthcare workforce management solution to include the management of the resident and fellow training lifecycle, including onboarding, evaluations, scheduling and value-based reimbursement strategies.

In August,

• Sycamore, a US-based school management software company, acquired TuitionEP, a payment solution provider for schools, creating a unified academic, communication, and payment system under one solution.
• Bett and GSV Summit, two major education technology events, announced their merger to form the largest and most influential education innovation community worldwide.
• Greenn, a Brazilian payment platform, has acquired Xgrow, an authoring tool for online learning programs, expanding Green’s reach to include 4M students and to become one of the 4 largest digital education platforms in Brazil.
• Year13, an Australian career prep service provider, has acquired Student Edge, a student assistance platform, to support its expansion in the US.

In July,

• TALi Digital Ltd, a digital health company, has announced the acquisition of You Can Do It! Education (YCDI!), a social-emotional learning program, for $1.34 million. The deal includes an upfront payment of $1.14 million and $200,000 in installments over 24 months.
• Learnbeat, a Dutch learning platform provider, has acquired Anywyse for its AI technology to provide more personalized learning opportunities.
• Dukes Education, a UK-based group of schools, acquired Mandoulides Schools to expand into the Greek market.
• Thrive, a UK-based AI-powered online learning platform, acquired Guider, an online mentoring and coaching business.
• Harvest Partners, a US private equity company, acquired The Learning Experience, to expand their operations into Early Childhood Education.
• F-code Inc., a Japanese company, has acquired DEITORA, to focus on digital skills education.
• THI Investments, a UK-based investment firm, has acquired Empowering Learning Group to drive expansion for both its training and staff service in the UK and internationally.
• Hudl, a Lincoln-based company, has acquired both Titan Sports and Balltime to expand its performance tracking and AI analytics capabilities for athletes at all levels, from high schools to professional teams.

In June,

• Unikum has acquired ed tech company StudyBee, which provides modular assessment and insights products integrated with Google Classroom.
• O2B Early Education acquires two North Dakota Bright Futures Learning Centers.
• Wolters Kluwer Health, a global provider of information services and solutions, has acquired IntelliLearn, an Australian company that offers online course solutions for nursing schools.
• Brave Bison, a UK-based digital media company, has acquired MiniMBA, marking its entry into the professional training and EdTech space.

In May,

• Colegium, a Chilean learning platform, acquired preschool edtech, KidsBook, to expand its coverage in the early education segment.
• IXL Learning, a US-based EdTech firm, acquired MyTutor to boost AI lesson planning, adaptive exams, and progress tracking.
• IMG Academy acquires college recruiting service SportsRecruits.

In March,

• Pryor Learning, LLC  acquired PeopleKeys, Inc.  to expand Pryor’s capabilities to offer market-leading DISC assessments and benchmarking analytics as part of its training and learning curriculum.
• Niche, a Canadian K-12 and college discovery platform, has acquired Goodkind, a startup that helps colleges and schools connect with prospective students.

In February,

• Commercial Services Group, a UK-based logistics firm, acquired WF Education Group to build marketshare across the UK and France.
• The Riverside Company, a US investment firm, acquired Wall Street Prep (WSP), a financial training provider, to expand its market share in financial training services.
• Sparkrock, a US-based enterprise software provider, acquired School-Day, a leading payment and activity management platform for schools.
• Elsmere Education, which helps higher education institutions manage online programs, merged with HCRC to offer enrollment and retention solutions.
• Dallas-based Barbri Global, which sells bar exam preparation courses acquires legal learning company Quimbee, a platform that provides study guides for law students
• BetterLesson, a K-12 professional learning provider, acquired Always Be Learning (Abl), to enhance its support for school districts with student scheduling and programming.

In January

• Cengage Group, a US-based curriculum resource provider, acquired Visible Body, a provider of interactive 3D models and software for science education.
• Wayable, a Canadian platform specialized in support for international students, acquired Psymood, a mental health and mentorship provider targeted at international students.
• Brightchamps, a Singaporean curriculum resource provider, acquired Edjust, a provider of digital solutions for personalized education. With this acquisition, GSV Ventures-backed Brightchamps has acquired four companies, including Education10x, a financial literacy education platform for children, Schola, a live learning platform for kids, and Metamorphosis Edu, which trains students in skills linked to entrepreneurship.

Factors Driving Deal Activity

• Continued Consolidation: Expect to see continued consolidation in various segments of the edtech market. This will be driven by companies seeking to expand their product offerings, enter new markets, and achieve economies of scale. For example, companies with complementary product offerings might merge to offer more comprehensive solutions.
• Private Equity Activity: Private equity firms will remain active in the education and edtech space. These firms will be looking for companies with strong growth potential and recurring revenue models. We can also expect to see larger deals involving established players in the market, as well as smaller acquisitions of emerging startups.
• Focus on AI and Emerging Technologies: While AI presents an existential risk for some traditional online education companies, businesses that leverage artificial intelligence and other emerging technologies to improve learning outcomes will be attractive targets. This includes AI-powered tutoring platforms, adaptive learning systems, and platforms that personalize learning content.
• Continued Emphasis on K-12 and Higher Education: Deals involving K-12 learning solutions, higher education platforms, and workforce development solutions will remain prominent.
• Companies focused on the Skills Gap: Companies that provide upskilling and reskilling are becoming central to education pathways. Work-integrated learning models—internships, apprenticeships, and co-op programs—are gaining traction in the United States, aligning student education with industry needs. Vocational training has emerged as a pragmatic choice for many learners. Collaborations between traditional academic institutions and industries are creating seamless pathways from education to employment, addressing local talent shortages. Governments are incentivizing practical training, making it faster and less expensive for students to enter in-demand jobs.

Additional Factors to Consider

• Valuation Pressure: The valuation of edtech companies may continue to face pressure due to the recent market corrections and ongoing economic uncertainties. Buyers are likely to remain cautious and selective, emphasizing profitability and sustainable growth.
• Impact of ESSER Funds: The expiration of ESSER funds will likely continue to influence K-12 spending, which may impact the strategies of EdTech companies in that space.
• Impact of Byju Bankruptcy: The 2024 bankruptcy of Byju and Prosus writing off it’s investment will likely depress valuations in the edtech sector and create a flood of deals on the market.
• Impact of AI on Education.  While AI presents some exciting opportunities for education, it presents an existential threat for others.  See our article on the impact of AI on the Coding Bootcamp Sector.

About the Author and Jackim Woods & Co.

Rich Jackim is an education industry investment banker, education 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.

Expert M&A Advisors: Flexible Solutions for Complex Transactions

In today’s dynamic mergers and acquisitions landscape, businesses need experienced advisors who can provide targeted expertise without the rigid structure of traditional full-service engagements. Our boutique M&A advisory firm offers flexible, hourly consulting services that give you access to senior-level expertise precisely when you need them.

Strategic Advisory Services Tailored to Your Transaction

Whether you’re preparing for a sale, evaluating an acquisition opportunity, or navigating complex negotiations, our experienced team provides comprehensive support across all critical aspects of M&A transactions. Our hourly consulting model allows you to leverage our expertise efficiently while maintaining control of your process and budget.

While we still offer clients the option of working with us under the traditional retainer and success fee or commission model, more and more clients are opting for the hourly consulting approach.  Here’s why.

Strategic Financial Planning and Analysis

Our seasoned advisors work alongside your executive team to strengthen your financial narrative and strategic positioning. We assist CEOs and CFOs in developing compelling financial presentations that highlight your company’s value drivers and growth potential. Our services include:

• Strategic financial analysis and report preparation
• Custom financial modeling and projections
• Valuation analysis and benchmarking
• Scenario planning and sensitivity analysis

Professional Transaction Management

Successfully navigating an M&A transaction requires meticulous attention to detail and deep market knowledge. Our team provides comprehensive support throughout the entire process:

• Data room preparation and management
• Professional presentation development
• Process mapping and milestone planning
• Timeline management and coordination

Expert Transaction Guidance and Negotiation Support

Leverage our extensive transaction experience to optimize your outcomes. Our advisors provide:

• Market intelligence on current terms and conditions
• Strategic negotiation support
• Term sheet and LOI guidance
• Deal structure optimization
• Purchase agreement consultation

Our Expert Team

Our firm brings together a diverse team of M&A professionals, each contributing specialized expertise to your transaction. Our team includes:

• Investment Bankers with decades of deal experience across various industries
• Financial Analysts who excel at modeling, valuation, and detailed financial analysis
• Project Managers who ensure smooth process execution and milestone achievement

Every team member is carefully selected for their transaction expertise and commitment to client success. This combination of skills ensures you receive comprehensive, professional support throughout your M&A journey.

Cost-Effective Advisory Services

Our innovative hourly consulting model represents a significant departure from traditional M&A advisory fee structures. By eliminating the standard success fee that most investment banks and M&A advisors charge, we can deliver substantial cost savings to our clients while providing the same high-quality expertise and service.

Significant Cost Savings

Traditional M&A advisory fees typically include a substantial success fee ranging from 1% to 5% or more of the transaction value. For mid-market transactions, this can translate to fees between $100,000 and $500,000 or more. Our hourly model eliminates these success fees, potentially saving clients hundreds of thousands of dollars while still maintaining access to top-tier advisory services.

Flexible Engagement Model

Our hourly consulting approach allows you to access senior-level expertise without committing to a full-service engagement. This approach provides:

• Cost-effective access to expert guidance
• Flexibility to scale services up or down as needed
• Ability to supplement internal resources strategically
• Professional support throughout the transaction lifecycle

Senior-Level Expertise

Every engagement is staffed with experienced M&A professionals who bring:

• Decades of transaction experience
• Deep industry knowledge
• Proven negotiation expertise
• Strategic insight and practical guidance

Client-Centric Approach

We focus on delivering value through:

• Tailored solutions for your specific needs
• Direct access to senior advisors
• Clear, actionable guidance
• Efficient resource utilization
• Avoidance of any conflict of interest that is possible when a success fee is involved

To see if an hourly consulting or success fee engagement is best for you, please read our related article about the pros and cons of each approach.

Partner with Experienced M&A Advisors

In today’s complex M&A environment, having the right advisor can make the difference between a good deal and a great one. Our hourly consulting services provide the flexibility and expertise you need to navigate your transaction successfully while potentially saving hundreds of thousands in traditional success fees.

Contact us today to learn how our experienced M&A advisors can help you achieve your transaction objectives.

About the Author and Jackim Woods & Co

Rich Jackim is an attorney, investment banker, and entrepreneur. For the last 30 years, Rich and his team have been providing boutique investment banking services to small and middle-market companies in over 30 industries.

In addition to running a successful M&A advisory firm, Rich founded a successful training and certification company called the Exit Planning Institute, which he sold to a private family office 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.  It became an Amazon best-seller in the business consulting category the year it was published.

If you own a business and are interested in exploring your options, I would welcome an opportunity to speak with you. There is no cost or obligation to you and all discussions are completely confidential.

Feel free to contact me at 224-513-5142 or rjackim@jackimwoods.com.

An Innovative Approach to Business Brokerage and M&A Fees

Working with a business broker or M&A advisor can significantly enhance your results when selling your business. At our firm, we recognize the distinct needs of each client and offer an innovative alternative to the conventional business broker fee structure. In addition to the traditional full-service commission or success-fee model, Jackim Woods & Co provides clients with the option to engage us as consultants and pay on an hourly basis, offering a more personalized approach tailored to your requirements.

Our innovative hourly billing option allows you to access our expert services as needed, ensuring you only pay for the specific assistance you need, resulting in significant cost savings. Regardless of the fee model chosen, we are committed to providing exceptional services and outcomes aligned with your unique objectives.

Deciding Between Fee Structures

Success-Fee Basis

PROS:

1. Aligned Interests: Our fee is contingent upon the successful sale, aligning our interests with yours and motivating us to get the highest price for you.
2. Minimal Upfront Costs: With only a small retainer upfront, you can minimize initial expenses.
3. Confidence in Broker’s Ability: Our willingness to work on a success-fee basis reflects our confidence our ability to sell your business.
4. Risk Mitigation: If the deal falls through, you incur no financial obligation other than the initial retainer, thereby reducing your financial risk.

CONS:

1. Higher Overall Cost: The success fee, a percentage of the sale price, will usually result in higher costs compared to hourly billing.
2. Focus on Larger Deals: Brokers may prioritize larger deals due to their compensation being tied to deal size.
3. Possible Rush to Close: There’s a risk of prioritizing closing the deal over negotiating optimal terms for you.

Hourly Basis

PROS:

1. Cost Control: Hourly billing offers predictability and manageability, especially for smaller transactions or prolonged processes, ensuring you pay only for the services you need.
2. Flexibility: You can tailor our services to your needs, from brief consultations to having us run a comprehensive sell-side process for you.
3. Objective Advice: Our fee structure ensures impartial advice focused on your best interests rather than simply closing the deal.
4. Transparency: Transparent billing simplifies expense tracking and comprehension.

CONS:

1. Upfront and Ongoing Costs: The hourly fee is due whether the deal closes or not, so the cost to you may be higher than the initial retainer under the success fee based approach.
2. Less Incentive to Close Quickly: Because we are solely focused on providing you with impartial, objective advice, it could potentially prolonging the process.

Case Study

Recently, we assisted the owner of a medium-sized court reporting firm in California. With a business valued at $1M, she sought our expertise in navigating a sale. She had already been approached by several buyers, so she just needed our help determining what her firm was worth, analyzing each buyer’s offer, providing assistance in negotiations and counterproposals, and help responding to the buyer’s due diligence requests.  Since she didn’t need us to run a full sell-side process, the consulting model was ideal for her.  Typically, brokers charge an 8-10% success fee, translating to $80,000 in this case. Opting for our hourly consulting model, she saved a substantial amount. With 40 hours of consulting time spent, including valuation, negotiation, and due diligence assistance, her total fee amounted to $15,800, saving her $64,200 compared to the traditional business broker commission model.

Conclusion

Recognizing the uniqueness of each client’s needs, we offer both traditional commission and consulting fee models. Whether engaged using a success-fee arrangement or hourly billing, our commitment remains steadfast to providing top-tier service tailored to your objectives.

About the Author and Jackim Woods & Co

Rich Jackim is an attorney, investment banker, and entrepreneur. For the last 25 years, Rich has been providing boutique investment banking services to small and middle-market companies in over 30 industries.

In addition to running a successful M&A advisory firm, Rich founded a successful training and certification company called the Exit Planning Institute, which he sold to a private family office 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.  It became an Amazon best-seller in the business consulting category the year it was published.

If you own a business and are interested in exploring your options, I would welcome an opportunity to speak with you. There is no cost or obligation to you and all discussions are completely confidential.

Feel free to contact me at 224-513-5142 or rjackim@jackimwoods.com.

How To Guide to Selling Your Court Reporting Firm for Top Dollar

I’m pleased to announce that I just published a free 17-page guide to Selling your Court Reporting Firm for Top Dollar.  This comprehensive guide provides a lot of useful information as you begin to think about selling your court reporting firm, so I thought it would be helpful to provide an outline of the topics covered.

The Ultimate Guide to Selling Your Court Reporting Firm for Top Dollar

Introduction

• Overview of the complexities and rewards of selling a court reporting firm.
• Importance of understanding the sale process and strategizing your exit for a profitable transition.

Understanding the Value of Your Court Reporting Firm

• Critical first step: Determine your firm’s fair market value.
• Unique and valuable aspects of your business in the marketplace.
• Importance of working with an experienced business broker in the court reporting sector.

Key Non-Financial Factors Affecting Firm Value

1. Client Base:
   • A diverse and loyal client base as a primary asset and value driver.
2. Contractors/Reporters:
   • The significance of the experience and tenure of court reporters or contractors.
3. Technology:
   • Adoption of cutting-edge technologies as a value enhancer.
4. Administrative Staff:
   • The expertise and experience of administrative staff in maintaining service quality.

Valuation Rules of Thumb

• The role of EBITDA and SDE in business valuation.
• Importance of accounting for unique value drivers and detractors for accurate valuation.

The Sales Process

• Steps and timeline for selling a court reporting firm.
• Importance of preparation for a smooth and successful sale.

Preparing Your Firm for Sale

• Financial statement organization and operational process documentation.
• Emphasizing the necessity of up-to-date accounting and efficient operational processes.

Marketing Your Court Reporting Firm

• The need for creating a compelling offering package and contacting potential buyers.
• Utilizing digital marketing and leveraging the expertise of business brokers.

The Role of Professional Advisors

• Advantages of working with a business broker specialized in court reporting firms.
• Mitigating risks such as low-ball offers, due diligence failures, and distractions during the sales process.

Navigating Negotiations

• Understanding buyer motivations and maintaining flexibility.
• The importance of negotiating with multiple buyers simultaneously to secure the best deal.

Choosing the Right Buyer

• Balancing financial offers with cultural and operational fit.
• Evaluating different types of buyers: big box firms, regional firms, and individual entrepreneurs.

The Closing Process

• Steps involved in closing the sale, including due diligence and finalizing financial terms.
• The significance of definitive legal documents at closing.

Embracing the Future Post-Sale

• The emotional and practical aspects of life after selling your business.
• Opportunities for new ventures and personal growth.

Conclusion

• Summarizing the journey of selling a court reporting firm.
• Encouragement to contact a professional advisor for guidance and valuation.

Download Your Copy Here

Download your free copy of this useful white paper here.

About the Author and Jackim Woods & Co.

Rich Jackim is an attorney, investment banker, and entrepreneur. For the last 25 years, Rich has been providing boutique investment banking services to small and middle-market companies in the court reporting and litigation support sector.

In addition to running a successful M&A advisory firm, Rich founded a successful training and certification company called the Exit Planning Institute, which he sold to a private family office 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.  It became an Amazon best-seller in the business consulting category the year it was published.

Jackim Woods & Co offers skilled mergers and acquisitions advisory services to court reporting firms, digital reporting and videography firms, court reporting schools, eDiscovery companies, and legal contract staffing companies in both sell-side and buy-side transactions. Jackim Woods & Co has arranged over 100 successful transactions, ranging in value from less than one million to more than eighty million dollars.

If you own an court reporting firm or litigation support company and are interested in exploring your options, I would welcome an opportunity to speak with you. There is no cost or obligation to you and all discussions are completely confidential.

Feel free to contact me at 224-513-5142 or rjackim@jackimwoods.com.

Acquisitions in the Education and Edtech Sectors in 2024

The following is a summary of mergers and acquisitions transactions in the education and edtech sectors in 2024.  We will update this post every two weeks as we work with more clients and learn of other deals in the sector.

The education and edtech sectors have been off to a slow start in 2024.  This is following a significant drop in valuations in 2022 and 2023 as edtech companies no longer benefited from the COVID boost in 2022, and many were no longer profitable in 2023.

For many in the industry, 2023 was a tumultuous year. Numerous deals were close to closing but fell apart during due diligence. Interest rates continued to rise, inducing anxiety around the cost of borrowing and requiring buyers to require a higher overall return on their investment, which depressed valuations.

At the same time, investors had to rethink their investment criteria due to a rash of bad decisions they made during the frenzy of the COVID pandemic.  Since then, most Edtech investors opted to take a much more cautious and conservative approach after making investments at inflated valuations in 2020 and 2021 that might have made sense during COVID, but now appear ridiculous in hindsight. Post-COVID, entire segments of the education sector have been shaken up – from the increased regulation on for-profit Title IV colleges and regulations that effectively put OPM providers “on life support” to concerns about the implications surrounding the expiration of ESSER funds and the effect that will have on preK-12 education.

As a result, valuations for small, medium, and large edtech companies are back to their pre-COVID levels and are still significantly higher than valuations for traditional businesses. The average small and medium-sized edtech company is valued at 2x to 3x trailing twelve-month annual recurring revenue.

Acquisitions in the Education and Edtech Sectors in 2024

Below is a summary of the mergers and acquisition transactions in the education and edtech sectors so far in 2024.  This is by no means an exhaustive list as many smaller transactions are never announced.  This list only represents the deals we have learned about through our network or that we have been directly involved in.  I’ll do my best to update the list every two weeks.

In November,

H.I.G. Capital and Thoma Bravo signed a definitive agreement to acquire CompTIA Brand and Products. CompTIA is the world’s largest and most well known information technology (IT) certification and training organization focused on promoting industry growth and skills development across the global IT ecosystem and its millions of professionals.

KidsKonnect, a Netherlands-based early-years organization, has acquired NoodleNow, a UB-based teacher training provider for early childhood education, to expand into the UK.

Vitality, a UK-based behavioral health platform, has acquired WellSpark, a US-based coaching provider, to integrate its tools into existing health plans.

In October,

EQT AB, a Swedish investment firm, acquired international schools operator, Nord Anglia Education, for $14.5 billion, making it one of the largest Education deals in since the pandemic. Nord Anglia Education operates over 80 schools in 33 countries and educates more than 85,000 students a year.

ILAC Education Group acquired the US-based UniApplyNow, a university admission platform, to strengthen its North American higher education platform customer base. The terms were not disclosed.

Trainocate, an IT education company, acquired EnterOne, an advanced technology training and services provider, to expand Trainocate’s global presence.

Boathouse Capital’s portfolio company, Guidewell Education, acquired College Matchpoint to expand college admissions support for students nationwide.

OffSec, a US-based cybersecurity training provider, was acquired by Leeds Equity Partners.

In September,

Novakid, a provider of online English language lessons for K-12 students, acquired Lingumi, a U.K.-based English learning app.

The online university, Western Governors University, acquired Craft Education, an education technology company that specializes in apprenticeship programs.

Savvas Learning Company, K-12 learning solutions provider, acquired Pointful Education, a provider of online career and technical education courses.

A Swiss media-centric investment firm, CosmoBlue Media, acquired Macademia, a gamified education provider for children.

TouchMath, a US-based K12 math education provider, has acquired Classworks, a K12 math EdTech firm, to expand its product offerings.

In August,

Roper Technologies agreed to acquire Transact Campus, a higher ed payment and ID company, for $1.5 billion.

IT company Climb Global Solutions acquired Douglas Stewart Software & Services, an SaaS solutions company focused on education, for $20.3 million.

In July,

Neuberger Berman, a U.S. asset manager, is close to acquiring a minority stake in Nord Anglia Education, an international network of schools. Insiders report that the Neuberger Berman will invest $15 billion in the deal.  That would be the largest K-12 deal in years.

IXL Learning, the company that owns Rosetta Stone and Dictionary.com, acquired Carson Dellosa Education, a teaching supplies publisher. The amount was not disclosed.

Instructure, the public company that makes the Canvas learning management system that is used by many schools and colleges, will be taken private by the large private equity group, KKR in a transaction worth $4.8 billion. That’s the single largest edtech deal in years.  At the same time, Instructure acquired student records management platform Scribbles.

School safety software company Raptor Technologies acquired payments and ticketing provider PayK12.

Intelvio, a healthcare education company backed by Eden Capital, acquired the Professional Crisis Management Association (PCMA). PCMA is a crisis management training and certification company based in Sunrise, Florida. The acquisition enhances Intelvio’s existing behavioral health offerings and expands the Company’s overall healthcare training platform.

Edwin Group, the UK’s largest provider of supply teachers, what we in the U.S. call “substitute teachers” was acquired by Quad Partners, a U.S.  based private equity firm, highlighting the potential growth of solutions to address global teacher shortages.

The animation studio Hobbes was acquired by Duolingo, the very popular language learning app.  No terms were disclosed.

The Indian edtech giant Byju filed for bankruptcy protection.  The company will likely sell off its operating divisions and edtech products.  This flood of deals on the market is likely to depress valuation of edtech companies for the next 12 months.

EdPower, a LMS provider in the U.S. was acquired by Prometric, a US-based testing and assessment provider.  The terms were not disclosed.

Genius Teacher, an Indian EdTech that provides content for primary school teachers was acquired by Schoolnet, a US K12 management system.

In June,

The College of Court Reporting, an Indiana-based nationally accredited, degree-granting court reporting college was acquired by a strategic buyer that owns and operates several other vocational colleges.  Jackim Woods represented the seller and arranged the transaction.

Instructure, (NYSE: INST) a Utah-based learning management software company, acquired Scribbles Software, a North Carolina-based company that provides software solutions for K-12 school districts, to bolster it’s K12 offering. The terms of the transaction were not disclosed.

TicTac Group, a Swedish company providing e-learning solutions, acquired Skillhabit, a Swedish AI-driven learning platform.

PepTalkHer, a New York-based coaching platform, acquired Mettacool, a Wisconsin-based E-learning and coaching platform.  The terms of the transaction were not disclosed.

Raptor Technologies, a Texas-based provider of school safety software, acquired PAYK12, an Indiana-based cloud-based education finance management company.

Children’s publisher Scholastic acquired 9 Story Media Group, which produces children’s content for $182 million.

Digital curriculum company Imagine Learning has acquired CueThink, a platform that uses artificial intelligence tools to improve students’ critical thinking in math instruction.

While not an acquisition, there is an interesting update on Byju.  Investment giant Prosus says that wrote off its $2.1 billion investment in Byju’s stating they now believe its 9.6% investment in the company is worthless.  This will certainly have a chilling effect on valuations in the edtech sector.

ClearCompany, a provider of human capital management software, owned by Gemspring Capital, acquired Brainier Solutions Inc. (“Brainier”), a leading provider of innovative learning management software for corporate clients. The terms of the deal were not disclosed.

In May,

PowerSchool, a K-12 software company, announced that it may go private in a $6 billion deal with Bain Capital, according to press reports. The deal is pending.  We will update the details once the deal is finalized. This is likely to be the largest edtech deal to date.

Follett School Solutions acquired MasterLibrary, maker of a facility management platform. The terms were not disclosed. MasterLibrary allows districts to manage facility scheduling, work orders, fees, rentals, and reservations, as well as access, edit, and customize floor plan drawings.

Class Over, a K-12 online course provider, is being merged with Battery Future Acquisition in a $135 million deal.

Domoscio, a French adaptive learning platform, was acquired by Rise Up, a French active learning platform, to expand its offerings in the space.

Tustawi, a digital education platform in Kenya, was purchased by Castnet Learning, an online education platform. This acquisition will allow Castnet to expand its service offerings to Kenya.

95 Percent Group, a literacy curriculum provider in the US, acquired Sortegories, a language learning app for K12 students. This acquisition will expand 95 Percent Group’s digital offerings for language learning.

In April,

Basis Vectors Capital, a private equity firm focused on vertical SaaS, acquired Cadient Talent, a talent acquisition solutions provider in the hourly hiring sector , to expand their portfolio of SaaS solutions and to expand Cadient’s growth. The terms were not disclosed.

Follet School Solutions acquired MasterLibrary, a K-12 solutions provider. The amount was not disclosed.

Wonderschool acquired ChildcareMatters, a substitute teacher staffing platform. The amount was not disclosed.

LEORON Institute, a corporate training EdTech company, acquired UAE-based XpertLearning, the leading professional training and development provider in the Middle East, to expand their market expansion in the region.

The tech training and development solutions provider, GenSpark, acquired ProGrad, an Indian end-to-end sourcing, screening, and training solutions provider, to broaden their service offerings in the APAC and Indian markets.

Kangarootime, a childcare management software provider for early education centers, acquired Clay, an AI-powered lesson planner. The terms were not disclosed.

Keystone Partners, a career transition and outplacement services provider, acquired CEC, which offers certification and training for coaching careers. The amount wasn’t disclosed.

Viking Mergers & Acquisitions, a business brokerage firm, acquired Sea School, a maritime licensing and education provider.

CareerArc, a hiring and recruiting company, acquired Lumina, a leading SaaS platform for generating visual job postings at scale. The amount wasn’t disclosed.

The content curation platform, Wakelet, acquired Bulb, a digital portfolio provider used primarily by teachers and job applicants, for an undisclosed amount.

IXL Learning, creator of adaptive online learning systems, as well as the owner of Rosetta Stone, acquired Dictionary.com for an undisclosed amount.

Wonderschool, a startup that provides software and support to help individuals and local governments spin up childcare businesses, has acquired EarlyDay, which operates an early childhood educator marketplace. The terms of the transaction were not disclosed.

In March,

the children’s publisher Scholastic acquired 9 Story Media, a children’s content producer and distributor, for a reported $186 million.

StraighterLine, an online course provider, acquired ProSolutions Training, an early childhood education training provider, for an undisclosed amount.

The online learning platform Skillshare completed its acquisition of Superpeer. The acquisition will expand Skillshare’s on-demand course offerings. The terms of the deal were not disclosed.

Accenture acquired Udacity, one of the pioneers of large-scale online courses. The terms of the deal were not disclosed, but it was announced at the same time Accenture announced a $1 billion investment to create a new learning platform focused on AI, called LearnVantage.  Accenture reportedly paid only $80 million for Udacity, which back in 2012 had raised over $300 million in venture capital investments.

Leeds Equity Partners acquired TouchMath, a K-8 math curriculum provider.

The U.S.-based language learning solutions provider, Wayside Publishing, , acquired Nualang, which develops tools for world language classrooms. The transaction details were not disclosed.

Kido International, an international daycare and preschool design, technology and learning company, acquired Amelio Early Education, a preschool and daycare operator. The amount was not disclosed, but is estimated to be north of $7.5 million.

Ellucian acquired EduNav, an academic planning and student success tool platform, for an undisclosed amount.

HMH acquired Writable, which provides a K-12 writing assessment and practice solution.

In February,

Communications and attendance software provider SchoolStatus acquired SchoolNow, a 25-year-old company that offers K-12 districts a website, app, and social media management platform.

Cognia, a forward thinking nonprofit organization laser-focused on improving educational opportunities for all learners, has agreed to purchase CenterPoint Education Solutions, a nonprofit organization that specializes in building cohesive education systems consisting of high-quality curriculum, aligned assessments, and expert professional learning.

CentralReach, publisher of autism software for special education teachers and caregivers, purchased New Jersey-based social and emotional learning software provider SILAS.

Podium Education, a career accelerator platform that partners with colleges to offer for-credit learning experiences to help students gain in-demand skills and work experience as part of their degree, acquired Untapped, a career opportunities software company, for an undisclosed amount.

Savvas, a K-12 solutions company, acquired Outlier.org, which offers online dual credit courses. The amount was not disclosed.

The National Association for Community College Entrepreneurship acquired SkillPointe, a skill-based career platform, for an undisclosed amount.

Avenue Growth Partners acquired a minority stake in BridgeCare, an infrastructure platform for early childhood education, for $10 million.

Google acquired Edlyft, an AI tutoring platform, for an undisclosed amount.

In January,

Oliver Solutions, a digital training platform, acquired Spiffy for an undisclosed amount.

Instructure Holdings, Inc. (Instructure) (NYSE: INST), the leading learning ecosystem and maker of Canvas, announced today it has completed the acquisition of Parchment, the world’s largest credential management platform and network.

Avathon Capital acquired Magical Beginnings, a network of early childhood learning centers in Massachusetts, for an undisclosed amount.

Google acquired Edlyft AI Tutor, an AI-powered STEM upskilling platform that seeks to make computer science education more accessible, especially for Black students.

Quantum5, an automotive training platform acquired Trivie, an AI-powered provider of a workforce engagement platform that personalizes learning content.

Avathon Capital, a private equity firm, acquired Magical Beginnings Learning Centers, a Massachusetts-based network of early childhood education centers.

ETS, the language testing company that runs TOEFL, acquired PSI, a U.S.-based language testing company. The amount was not disclosed.

Follet School Solutions, a K-12 edtech company, acquired Livingtree, a platform for fundraising management, for an undisclosed amount.

PowerSchool acquired Allovue, a K-12 financial planning, budgeting and analytics software provider, for an undisclosed amount.

Intelvio, a healthcare education company backed by Eden Capital, acquired Classward, an online provider of continuing education for aspiring and current EMS professionals. Classward’s EMS content complements Intelvio’s growing platform focused on solving healthcare employee shortages across the US.

Upgrad Education announced that it is in negotiations to acquire Udacity.  It also stated that it intends to raise $100 million, a large part of which will be used to finance the purchase, according to media reports.

We will update this post every two weeks as we learn about other transactions and close more deals in the education sector.

Read our previous article for information about mergers and acquisitions deals in the education sector in 2003 or our previous article about mergers and acquisitions deals in the education and edtech sectors that closed in 2002.

About the Author and Jackim Woods & Co.

Rich Jackim is an education industry investment banker, education 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.