What Buyers Look for in Buying a School
If you're considering selling your school, you're likely wondering what will make it stand out to potential buyers. The truth is, profitability is important, but it's just the beginning.
Buyers are not only looking at revenue. They want confidence in what they are walking into. They want to see a school that runs smoothly, serves its students effectively, and has room for growth. Here’s what usually tops their checklist.
1. Solid Financials
The first thing on any buyer’s list is your financial health. They examine income statements, balance sheets, and cash flow reports to assess the business's true financial stability.
They will want to know:
Are revenues predictable year to year?
Where is the income coming from? Is it tuition, grants, or government aid?
What are your major expenses, and are they under control?
Are there any financial risks, like unpaid tuition or lingering debt?
Consistent profitability, not just a strong year or two, earns buyer confidence.
2. A Strong Reputation
Your school’s name matters. Buyers check online reviews, talk to alumni, and ask around the community. A solid reputation helps with enrollment, staffing, and parent trust.
On the other hand, if the brand has taken a hit, they want to know what it would take to rebuild it. That could mean investing in new marketing or internal improvements.
3. Healthy Enrollment Trends
A growing, stable enrollment base is a strong indicator of trust and market demand.
Buyers look at:
Historical enrollment numbers and attrition rates
Whether you are at or near capacity, and whether there is potential for growth (and profitability)
If there is a waitlist
Flat or declining numbers can raise concerns unless a clear plan is in place to reverse them.
4. Talented and Stable Staff
A school is only as strong as its team. High turnover or underqualified staff can destabilize operations and reduce the perceived value.
Buyers want to know:
Who your key people are
How long has your leadership team been in place (and will they be there post-sale)
Whether the school can operate without heavy involvement from the owner
If your staff is experienced, stable, and committed, that creates confidence in continuity.
5. Location and Facilities
Buyers want to see a well-positioned school in a family-oriented or high-growth area, supported by competitive facilities and amenities.
They look at:
Accessibility and safety of the neighbourhood
Quality of buildings, classrooms, and extracurricular spaces
Deferred maintenance or hidden capital costs
The physical condition of the school plays a significant role in perceived risk.
6. Full Compliance
Compliance is non-negotiable. Buyers verify all licenses, accreditations, policies, and inspections to ensure everything is in order.
They confirm:
Accreditation and operating licenses are current
No pending legal or regulatory issues
Health and safety standards are fully met
Clean compliance records speed up deals and reduce legal risk.
7. A Strategic Fit
Buyers want schools that fit with their values, mission, or long-term business model.
They assess:
Whether the school aligns with their educational goals
If it can integrate into a group of schools they already own
How much effort will be needed post-acquisition
Strategic fit often determines which bidder wins the deal, especially if multiple offers are on the table.
8. Room to Grow
Buyers love upside potential. They look for ways to expand or improve what is already working (and pay off from what they paid).
They consider:
New programs or services that could be launched
Possibility of expanding enrollment or adding locations
Other revenue streams, such as summer camps, rentals, or online learning
Showing growth potential is one of the fastest ways to increase the value of your school.
Final Takeaway
Buyers care about more than the bottom line. They want to see a school that is financially sound, well-run, trusted in the community, and ready for the next chapter. If your school checks those boxes, you are not just selling a business—you are offering an opportunity.
Let’s Talk About Your School
Halladay Education Group
Helping School Owners Exit With Confidence
📧 Email: info@halladayeducationgroup.com
📞 Phone: +1 (800) 687-1492
