WASC Accredited Western U.S. Private University For Sale

[bjcheung77]

Gasp!  Let the bidding war begin!   Someone (or some group) with big pockets will want this RA school! I wonder which one it is... I am guessing $40 million or much more!  I remember a few months ago, a Canadian private school was for sale, it was quoted $40 million and I had a hard time holding my laughter after reading that message.  I would not even advise anyone to pay 1/10th for that Canadian school, scary what people are asking for, I believe it would have been much cheaper creating a competitor school and building the business.

July 21, 2020
Highly Profitable WASC Accredited Western U.S. Proprietary Private University For Sale With Title IV & SEVP Certification

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.

[ss20ts]

Wish they would say which school it is!

[Ideas]

Over the next year, there might be a lot of schools available for the right price.

[SteveFoerster]

Wish they would say which school it is!

It's interesting that they're using a broker like Halladay. Not that there's anything wrong with Halladay, but I wonder whether that suggests they tried reaching out to "usual suspects" VCs and big players in this industry (Laureate, Adtalem, etc.) and were rebuffed, forcing them to cast more broad a net.

[ss20ts]

Over the next year, there might be a lot of schools available for the right price.

I agree. There's a college nearby that's struggling. REALLY struggling. They were hurting before COVID. Then COVID happened and they're hemorrhaging $$$$. They've already signed a letter of intent with another local college to transfer many of the kids there. They don't have all of the programs at college b, but it gives them options and they wouldn't have to apply. They would transfer at their class level as well. If they survive the next year, it will be because they found alumni who handed over millions and I mean millions. They had a fundraiser to raise 7.5 million in June. Yup in 30 days during a pandemic they were fundraising for $7,500,000 and that was just to open the campus for the fall semester. If they can't be on campus for the fall semester, they're done. Room & board is what keeping them afloat. Same with many other colleges and universities from what I'm told by a VP of Campus Life at a college. He would not be surprised to see a lot of closures within the next 2-3 years.

[SteveFoerster]

He would not be surprised to see a lot of closures within the next 2-3 years.

I agree, and my probably unpopular opinion is that while I feel compassion for those who are employed by institutions that are not well suited for the 21st century economy (including 21st century demographics), that policymakers should forgo extreme measures to try to resuscitate expiring institutions.

[ss20ts]

He would not be surprised to see a lot of closures within the next 2-3 years.

I agree, and my probably unpopular opinion is that while I feel compassion for those who are employed by institutions that are not well suited for the 21st century economy (including 21st century demographics), that policymakers should forgo extreme measures to try to resuscitate expiring institutions.

Oh I do not believe taxpayers should bailout any private institution of higher education. They made their bed and now they have to lie in it. I know it's harsh, but so many colleges and universities offer numerous degrees in fields that don't exist anymore or are difficult to find a job with. They're just looking to cash in on students. Many of these institutions are stuck in the 1950's.