This industry includes schools, colleges, universities, professional and career development and training services, language instruction schools, music and fine arts schools and coaching services, not elsewhere classified. The key suppliers for this industry include books, office supplies and stationery suppliers; computer and electronic equipment retailers; security and janitorial services; catering services. While the majority of these services are targeted towards children and teenagers, the target demographic may include young working professionals and business people depending on the nature of the business. The industry is in its mature stage and institutes with long history generate and a strong track record, generally, outperform newer schools due to an established brand name.
Colleges and universities are heavily regulated in Canada; however, educational service businesses and coaching services are lightly regulated. The demand for college and university education has a strong correlation with the population growth rate. In recent years due to immigration, higher birth rate and escalating political tension, Canada have witnessed an influx of international students which has driven demand for educational services, especially language schools.
Institutes that are supported by government grants and subsidies are more defensive while private educational facilities depend on disposable income and household debt. The industry is expected to continue growing at a steady rate over the next five years.
Selling an Education Company
Companies in the education industry often go through consolidation and M&A activities. As Canada’s leading private market M&A Advisory firm, Beacon understands that selling a business is an important decision. A dedicated business owner not only seeks to extract maximum value from the sale of a business but also seeks to sell the business to a competent buyer who can continue the company’s legacy. Beacon has worked on valuation and M&A advisory mandates in the chemical manufacturing industry, bringing extensive experience in deal negotiation to the table.
Our experienced advisory team will assist your business in navigating the entire sell-side M&A process.
Experienced employees – In the education industry, service quality is determined by the expertise of educators and employees. A successful business hires a team of experienced educators who can help their clients achieve good outcomes.
High threat from competition: Businesses in this industry are subject to high threat from competition due to the low barrier of entry and high number of substitutes. As such, businesses differentiate themselves through niche service offerings and competitive pricing.
With 40 years of combined experience serving businesses within Toronto, Ontario, and abroad, the Beacon transaction team has extensive knowledge and experience successfully working for several automotive companies from a variety of industries. Whether it be a valuation or sale, our team can provide expertise and resources found only at larger corporations, paired with the personalized touch of our M&A Advisory team. Contact us today to get in touch with one of our advisors.