The educational sector has attracted a lot of attention from both strategic buyers and private equity groups.  For-profit career schools and technical colleges have seen strong growth during the last five years, irrespective of the recession.  New technology has caused qualified tradespeople to take courses to keep their skills up-to-date.  The recession and soft job market also caused many job seekers to return to school to improve their skills and chances of getting a job.  The shorter programs offered by career schools and technical colleges allows job seekers to complete their training and get back into the job market more quickly than with traditional colleges.

MidCap Advisors estimates the technical and trade school industry generated over $16 billion in revenues in 2010 and had over 40,400 schools and related businesses.  Revenues are expected to grow by 6% per year between 2010 and 2015.

Since the beginning of 2009 fifty-five private equity groups have invested in 71 companies in the education & training sector, according to PitchBook. Deal activity in the education sector slowed a bit in 2010 with only 28 deals completed compared to 40 in 2009. But 2011 is off to a strong start, with 4 deals completed in January, suggesting that this will be a good year to sell a career or technical school or other education related business.

Florida, which is home to 8.3% of career and technical colleges, has seen the largest number of transactions, followed by California, Connecticut, Michigan and Texas, each with 6.9%. Of the fifty-five private equity investors who have been active in the education & training industry, the most active include Hart Capital, The Riverside Company and Spire Capital Partners.

MidCap Advisors specializes in representing buyers and sellers of education related companies.  If you own a for-profit technical or career college or education related company and would like to explore your options, contact the MidCap Advisors office nearest you.