Acquiring an existing school or school group is a complex process. Understanding both the value and operations of the acquisition target and its growth potential is essential. Stemming from our deep understanding of school operations, our due diligence takes a deep dive into assessing the target’s present value, and provides the necessary foundation for assessing its potential for the future.
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Identify underperforming individual schools and/or school groups in mid-market price point.
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Acquire these targets using bank financing at an EBITDA multiple of 7X.
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Invest capital for campus upgrades.
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Improve caliber of teaching through PD and/or replacement.
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Reduce operating costs by using investor’s or KE’s centralized admin.
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Implement new curricula.
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Increase tuition 25-30% over 3 years.
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Divest after 3 years at EBITDA multiple of 9.5X, or retain for investor’s portfolio.