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
- 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.
