The PreK-12 education sector continues to be very active in mergers and acquisitions. Transactions are occurring in virtually every subsector of the industry and they are being completed by both corporate and private equity buyers alike. Advancements in technology, personalized learning and an increasing focus on student outcomes have played a significant role in the surge of M&A activity, along with a favorable macroeconomic and political climate that includes state and local funding programs that are reaching pre-recession levels. Mega deals such as Houghton Mifflin’s acquisition of Scholastic Corporation’s Education and Technology Services business and Pearson’s sale of PowerSchool to Vista Equity Partners are a testament to the favorable industry dynamics. Publicly traded service and technology providers such as Bright Horizons, G8 Education, Cambium Learning and Houghton Mifflin are trading at high multiples (median of 17.7x EBITDA) fueling their desire to consummate accretive acquisitions of privately held businesses.