Insight

Education services industry update fall 2021

Read more about the M&A activity in the education services sector

Education services valuation performance update

Fall 2021 Observations

  • Global aggregate deal value for the education services sector totaled $5.5bn in Q3-2021, down from $12.9bn(2) in Q2-21
  • Aggregate global M&A deal volume for the sector declined by 6.7% in Q3-21 compared to Q2-21
  • U.S. aggregate deal value for the education services sector totaled $1.8bn, down from $8.3bn(2) in Q2-21. During the same period, M&A deal activity increased by 17.0%
  • The U.S. accounted for 40.8% of global educational services M&A activity in Q3-21, up from 32.5% in Q2-21

 

Sector
Operating Statistics Valuation Multiples
Revenue Growth EBITDA Margin LTM Trading Multiples

TEV / NTM

EBITDA

TEV / Revenue TEV / EBITDA
Education Services 14.1% 12.3% 1.86x 16.3x 10.2x
Education Technology 24.6% 6.8% 9.37x 44.0x 24.7x
Secondary & Post-Secondary Education 7.2% 16.1% 2.27x 8.9x 11.3x
Corporate Training Services (0.2%) 13.6% 3.52x 26.1x 17.2x

 

M&A Activity & Aggerate Deal Value: Q2-2019 – YTD 09.2021

 

Footnotes

  1. In Q3-2020, ADGS Advisory, Inc. acquired Quality Online Education Group Inc., for ~$3.5bn, representing 43.2% of global aggregate deal value for the Education services sector during the quarter.
  2. In Q2-2021, Platinum Equity, LLC acquired McGraw-Hill Education, Inc., for ~$6.7bn, representing 80.7% of U.S. and 51.9% of global aggregate deal value for the Education services sector during the quarter.


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