Value Creation from Acquisitions

Strategic business owners understand the instant value creation added to their business when acquiring an additional location, or a portfolio of locations, assuming the newly added properties are well operated and profitable. Strategic buyers looking to enter a potential market are willing to pay a higher premium for those businesses with a larger, more well-established footprint in the community. Typically, a strategic buyer with business synergies already in place are willing to pay higher multiples than those private equity buyers. By adding locations to your business, you will be saving a potential buyer of your business the time and effort of finding additional, well-performing locations on their own. For strategic buyers looking to capture a large market share, they are willing to pay a higher multiple for one acquisition of five schools, than they would if they had to buy each school individually.

When acquiring a complimentary business, ensure the prospective business has a well-known and respected name along with some tenure in the community. This will significantly de-risk the opportunity for yourself, as the buyer, knowing that the new acquisition is a pillar in the community with a proven profitable track record. Whether you decide to rebrand the new acquisition under your business name or decide to keep the current operating name, it is important to ensure a seamless transition of ownership to keep the business operating without interruption to the staff and parents. After all, you acquired a business that is already operating profitably, you don’t want to make any changes that could negatively impact the school and affect your portfolio’s valuation when you go to sell.

SchoolWise Partners advises strategic buyers looking to expanding their existing footprint or those wanting to explore new markets. We’ll help identify strong performing schools in targeted geographic markets that best suit your current portfolio of schools, whether you are adding a second location or a national provider with hundreds of locations. SchoolWise Partners can help you close on that property across the street or help your find a new growing market across the country. SchoolWise Partners buy-side advisory services will help find the right acquisition for your portfolio and assist in all aspects of the deal from finding you the perfect school to acquire through closing. 

If you are thinking about expanding your business by adding additional locations, feel free to reach out and we will work with you to understanding your current business model and explore what a potential acquisition could do to boost your portfolio value. Give us a call at 305-646-9970 or email us at info@schoolwisepartners.com, we look forward to hearing from you.

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