Private investment in education has grown up. What used to be a sector driven by mission and modest margins is now attracting institutional capital, sophisticated deal structures, and investors who know what they want. One structure you'll encounter repeatedly in large-scale school development is the PropCo/OpCo model — and if you're on either side of a school transaction, you need to understand it.
Read MoreLike many of you, I've had a number of summer jobs going to university. One of them included working for a construction firm building houses. I don't claim to be a great carpenter, but one adage a foreman shared with me always stuck - 'measure twice and cut once'. This same ethos applies to organizations considering starting new programs or even new schools.
Read MoreOne of the critical blunders we see time-and-again with start-ups is that fact that founders haven't developed a detailed enough strategic business plan from pre-formation to operation over a five to seven year timeline to adequately determine whether: (1). The school is feasible in that particular market based on its program/operation/finance benchmarks; and (2) They've adequate capital to cover the initial cash-flow shortfall in the first two to three years of operation until they reach their break-even point.
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