Regionally Accredited US University for Sale!

Image courtesy of Halladay Education Group, Inc.

In the market for a regionally accredited (RA) private university in northern California? Be sure to have very deep pockets. If you have to ask, you probably can’t afford it, as the saying goes. Hint #1: A boarding school in North Carolina with a 100-acre campus recently sold for a cool $26 million. That should help you with your estimate. Hint #2: RA (WASC) is a key selling point and pushes up the price considerably.

I receive regular updates from Halladay Education Group (HEG), a Canadian company that bills itself as “one of the most active M&A consulting firms in the private education sector,” including non- and for-profit educational institutions. I share this recent update to offer my readers some insights into how this neck of the industry woods operates.

In this age of COVID-19 and the worst quarterly economic decline on record in the US, expect to see much more M&A activity in US higher education. Given that this announcement is being shared by HEG with its global network either means that the big money (VC, private equity) has already passed or that they simply want to cast a wider net.

Can anyone guess the name of the university? Hint: Do a search on CHEA (go to “Search Institutions”) by location, type of accreditation, and accreditor (WASC). Share your choice in the comments section below. Good luck!

Shalom (שלום), MAA

July 21, 2020
Highly Profitable WASC Accredited Western U.S. Proprietary Private University For Sale With Title IV & SEVP Certification (No. 3067)
Exceptional & rarely available opportunity to purchase a highly profitable Western U.S. proprietary private university with the coveted WASC accreditation, SEVP-certification, & Title IV approval to offer federally-backed student loans. It’s situated in a growing major Western U.S. market on a +10-acre, 130,000 SF campus available for lease or purchase. It’s regarded as one of the top post-secondary institutions in its market. It offers career-focused on-ground & online programs at the Master’s, Bachelor’s, & Associate Degree-level, as well as Certificate & Continuing Education Programs in the high-demand sectors of healthcare, EMS, nursing, engineering, psychology, business, hospitality, education, & criminal justice.    

It provides an opportunity for immediate access into the premium U.S. private regionally accredited university market, & the added ability for program expansion, further branch campus development, & capacity to triple on-ground enrollment, & continued online growth. The institution’s most recent 90/10 rate is an impressive 78% with an extremely low 3% default rate. It maintains an above-average graduation rate with friendly, supportive, & professional instructors. It boasts an extraordinarily high employment rate for graduates & an impressive retention rate.    

With high demand in its market, ownership has positioned the university for continued growth. They have consistent profits & three-year avg. revenue of $12.3M & adjusted EBIDA of $3.5M, & Y-O-Y profits conservatively projected in 2020 to reach a respectable $13.3M revenue & $3.9M adjusted EBIDA (30% margin), & $14.6M revenue & $5.2M adjusted EBIDA (35% margin) in 2021. Their campus allows on-ground student capacity to triple, generating an additional $25M revenue. Its highly regarded WASC accreditation & Title IV financial aid provides new ownership immediate access to the coveted for-profit U.S. university market with flexibility for additional programs, branch campuses, international student recruitment, & online growth.    

This high-quality private proprietary post-secondary institution is an exceptionally well-positioned turn-key platform for investors seeking access to the sought-after regionally accredited U.S. private university market.     

HIGHLIGHTS:

Profitable WASC-Accredited Western U.S. Private Proprietary University located in sought-after Major U.S. market & positioned to capitalize on long-term growth with new programs & on-ground & online enrollment.
Robust Market & Profitability With 3-Yr Avg. Revenue Of $12.3M & $3.5M Adjusted EBIDA (28% Margin), reaching $13.3M revenue & $3.9M adjusted EBIDA for 2020 (30% margin).
Offering High-Demand On-Ground/Online Programs at Master’s, Bachelor’s, Associate, Certificate, & Continuing Ed Level in healthcare, EMS, nursing, engineering, psychology, business, hospitality, education, & criminal justice.
Updated +10-Acre, 130,000 SF Campus Appraised At $13M with space to support enrollment growth to 2,400 students, including student residence, academic, & athletic space.
Capacity To Triple On-ground Degree Programs in existing campus, generating added +$25M revenue & ability to increase online programming.
Holding Coveted SEVP-Certification to enroll international students in the high-demand Western U.S. market.
Students Qualify For Title IV Financial Aid with an extremely low default rate of 3% & an impressive 90/10 rate of 78%.
Unparalleled Market Standing & Consistently Maintaining Clean Regulatory Rating, resulting in ongoing accreditation.

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