Surge in ELT School Sales Over the Last 30 Days: Causes and Implications

There has been a surge of new ELT Schools coming up for sale in the past 30 days. Why? A mix of reasons, probably.

• Summer 2023 Profits: Summer 2023 was a good one. Many schools made excellent profits,

so maybe the right time to sell, collect your money and retire?

• Retirement Age: Many of those people who started ELT schools in the 1990’s are now reaching

retirement age.

• VAT Concerns and Confidence: Some remain concerned about the rumours circulating on

Labour Party plans for VAT on private education and ELT; but there remains a general feeling of

increased confidence in the UK and Irish ELT industries with Covid in the past.

Market Insights

Additionally,

• Increased Revenues and Profits: The latest Assignment Report, https://lnkd.in/e7vrWUJP show

some of the bigger schools reporting significantly increased revenues and profits in 2022 and 2023.

• Sales Multiples: The sales multiple currently being achieved in the marketplace is between

5 and 7 x average profits before tax. Very attractive and profitable schools in the best locations

will sell for more than this, if promoted well.

• Realistic Asking Prices: With more Schools coming to market, sensible Sellers will be realistic

about their asking prices, and some have already reduced theirs slightly, to gain attention.

Buyers and Market Trends

• Big Buyers: Some big Buyers are circling, too and asking questions, especially from China and

the USA, as they sense an opportunity, especially in the Young Learners sector.

• Private Equity Interest: Private Equity is always interested in buying schools as they are looking

to build groups of schools and other educational businesses.

Contact for Buying or Selling

If you are really interested in Buying an ELT school in the UK or Ireland, or Selling yours, you are

invited to call James Dixey, the specialist education broker for ELT Schools, on:

07841 646887 . www.jamesdixey.co.uk

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Note: The School Report is a new initiative by James Dixey Ltd. The plan is to produce a simple, easy-to-read, and regular

summary of the state of the market for ELT Schools in the UK and Ireland. The plan is to publish on Linked In every 14 days.

The 2nd Issue will be published on November 20 and the 3rd on December 4 and so on.

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Questions, feedback, comments, new ideas, all very welcome.

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