What You Need To Consider Before Selling Your School
The landscape for selling private schools is shifting. Demographic trends, government policies, international enrollment caps, and shifting economic conditions are all influencing how buyers perceive the education sector. For school owners considering a sale, understanding what’s changed—and how to adapt—is key to achieving a successful outcome.
At Halladay Education Group (HEG), we stay ahead of the curve, so our clients can move with confidence. Here are the key trends we’re seeing in the market today:
1. Government Policy and International Student Caps
In Canada and the United States, immigration policy plays a significant role in international student enrollment. Recent federal changes in Canada, including caps on study permits and post-graduate work eligibility, have put pressure on schools that heavily rely on international students. As a result, buyers are prioritizing institutions with strong domestic enrollment and diversified revenue streams.
2. Demand for Skilled Trades and Career Education
There is a growing market demand for institutions offering training in healthcare, trades, IT, and other career-ready fields. Schools aligned with workforce needs—especially those with short-term, stackable credentials—are viewed as recession-resilient and investment-worthy. Schools with practical programs that translate into strong employment outcomes continue to stand out.
3. Regulatory Scrutiny and Accreditation Stability
Buyers are more cautious when it comes to compliance. Regulatory enforcement is tightening in both Canada and the United States, particularly in areas such as international student programs, data protection, and employment practices. Institutions with clean audits, full accreditation, and a proactive compliance strategy are more attractive to institutional and private equity buyers.
4. The Impact of Technology and Online Learning
Hybrid and online delivery models are no longer optional; they are now essential. The pandemic accelerated this shift, and schools that have invested in flexible, scalable learning platforms are commanding more substantial interest. Buyers are looking at digital readiness as a proxy for growth potential and operational efficiency.
5. Real Estate and Infrastructure Considerations
With rising costs, schools that own their campuses or have favourable long-term leases are in a stronger negotiating position. Facilities, technology infrastructure, and capital investment history all factor into valuation.
6. A More Sophisticated Buyer Pool
The buyer pool for private schools has matured. In addition to traditional education operators, there is growing interest from private equity firms, family offices, and international investors. These groups bring capital and strategic intent but are also conducting more thorough due diligence and requiring greater transparency throughout the process.
Navigating This Market with Confidence
While the market has become more competitive and complex, opportunities remain strong for schools that are well-positioned, well-managed, and properly advised. At Halladay Education Group, we bring decades of experience helping school owners navigate the changing landscape. From valuation to deal structuring to buyer screening, we ensure our clients are prepared for today’s realities and tomorrow’s opportunities.
Want to understand better how today’s market impacts your school’s value? Let’s talk. Contact HEG at info@halladayeducationgroup.com or call 1.800.687.1492 for a confidential consultation.