Capstone has released its October 2020 merger and acquisition (M&A) update on the Post-Secondary Education industry. The report is available for free download below.
COVID-19 headwinds and the approaching presidential election have created some deal hesitancy for post-secondary institutions, as they monitor the pandemic and wait to see how a potential administration change could impact funding and the regulatory environment. While the year has stalled immediate growth strategies, enrollment in colleges and universities has historically climbed during times of high unemployment and market uncertainty, positioning the industry for near-term growth. M&A activity has declined 37% year-over-year through September with 27 announced or closed transactions compared to 43 over the same period in 2019. Following a period of languishing activity during economic upcycles, deal activity saw an uptick starting in June as investors began looking for companies that experience a marked uptick in performance during recessionary periods. Schools that offered programs in computer sciences, nursing, trade schools or certificate programs that allow students to upskill quickly were favored by buyers seeking to diversify their course offerings or capitalize on high-growth fields.
The report includes: