The appetite for investment in schools worldwide seems unabated. But should you buy that school? There are five key elements that should be used to gauge the viability of a school purchase.

1. Should You Buy That
School?
ShouldYouBuyThatSchool?
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2. Should You Buy That School?
The appetite for investment in
schools worldwide seems
unabated. But should you buy
that school?
There are five key elements that
should be used to gauge the
viability of a school purchase.
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3. 1.Financial Position
2. Education Management
3. Market Growth Potential
4.Facilities
5. Valuation
ShouldYouBuyThatSchool?
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4. Financial
Position
The strength of a school's
balance sheet can be
evaluated by three
investment-quality
measurements.
Working Capital or
Short Term Liquidity
Asset Performance
Capitalisation
Structure
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Shoud You Buy That School?

5. Debt
Facilities & Physical Assets
Attrition, Student Turnover &
Projections
Financial Support, Scholarships &
Aid
Tuition
Faculty
Staffing
Decision Making Processes
You need to be awareof:
Operating Budget
Operating Cash Flow
Admissions
Shoud You Buy That School?
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6. Education
Management
The quality and effectiveness of
school management is best
determined by a comprehensive
school audit or review but in
summary we believe the following 8
essentials are valuable criteria:
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Shoud You Buy That School?

7. Education
Management
1. Clear & SharedFocus/Mission
2. High Standards & Expectations ForAll
Teachers & Students
3. Effective School Leadership
4. High Levels of Collaboration, Communication
& Professional Development
5. Rigorous Curriculum & Instruction
6. Regular & Consistent Monitoring ofLearning
& Teaching as well as Accountability ofResults
7. Supportive Learning Environment
8. High Levels of Family & Community
Involvement
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Shoud You Buy That School?

8. Market Growth
Potential
In order to grow your school, it is imperative
that you understand both who the existing
market is, as well as who the new expanded
market will be. It needs to be clear where the
new growth can come from. If you don’t know
who your customers are, how will you be able
to assess whether you are sharing the right
messages and meeting their needs?
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Shoud You Buy That School?

9. 1. Who is the Primary Market
a. Why did existing parents choose this school?
b. Why would a new parent choose this school?
2. Parent Satisfaction
a. Retention rates are high.
Market b. Satisfied parents who tell everyone about your
school.
Growth 3. Describe the Market Segments
Potential
a. Demographic
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b. Psychographic
c. Geographic
d.Behaviourist
2. Review Current Market Research
3. Why Should I do a Competative Analysis
4. Perfect Imperfections
Shoud You Buy That School?

10. Facilities
Should you buy that
school based on
facilities? You need to be
careful of the traps that
might be hiding under
the surface. You also may
have some golden
opportunities or quick-
fixes that make the
school more valuable
than you thought.
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Shoud You Buy That School?

11. 1.Street Appeal &
Branding
2.Space Utilisation
3.Facility Audits
4.Facility Components
5.Structure &Roofing
6. Building Exterior
7. Building Interior
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8. Plumbing
9. Electrical
10. Grounds
11.Furniture, Fixtures
& Equipment
12. Documentation
13. Maintenance
Shoud You Buy That School?
Facilities

12. Valuation
Selling a school can be a difficult decision for
investors and entrepreneurs to make, both
on an emotional and financial level. There
are a number of factors that come into play
when determining an appropriate asking
price, including competitive advantages,
growth opportunities, and historic financial
performance.
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Shoud You Buy That School?

13. 1.What is EBITDA?
a.EBITDA = Operating Profit (EBIT) + Depreciation (D) + Amortization (A)
2. Using EBITDAto Strike a Deal
3. Comparing EBITDA Multiples
4. Can EBITDAbe Misleading?
5. Other methods to consider & include:
a. AssetValue
b.Revenue
c. Discounted Cash-flow Analysis
d.More Than Just Science
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ShoudYouBuyThatSchool?

14. Should You Buy That
School?
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