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
||Operating Statistics||Valuation Multiples|
|Revenue Growth||EBITDA Margin||LTM Trading Multiples||
TEV / NTM
|TEV / Revenue||TEV / EBITDA|
|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
- 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.
- 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.
Education services industry update fall 2021