Beauty Link - Volume 4, Issue 4 - (Page 30)
EXPERT PERSPECTIVES ON SELLING A SCHOOL
BY SUSAN MILLER
ust as no two schools deliver exactly the same educational experience, no two school sales are completed in precisely the same manner. However, experts agree there are some common steps school owners should follow when considering selling their business. BeautyLink spoke with attorney Ron Holt of Dunn & Davison, LLC, and Todd Gates of Spectra Advisors about questions school owners and shareholders frequently encounter when considering a sale. Both gentlemen were panelists at the AACS Convention session, A Beautiful Business: How Beauty Schools are Selling in Today’s Market.
e? l a S
When it comes to selling a school, where should an owner begin?
Todd Gates: A majority of school owners
is critically important when it comes to protecting against indemniﬁcation.
have little or no experience selling a postsecondary education business and often don’t fully understand all that the process entails. It is critical that owners consider the entire sales process and align with education-speciﬁc experienced advisors including a broker/investment banker, accountant and lawyer. Ron Holt: Schools exist in a complex regulatory environment, so anyone selling an accredited business should have good counsel to ensure they’re well-advised on regulatory matters. For any school participating in federal aid programs, counsel
What are some resources to assist with the sales process?
Todd Gates: The best resource is a
trusted colleague who has recently sold a school. Owners can also attend industry conferences to connect with advisors. AACS workshops, state-sponsored education meetings, regional ﬁ nancial aid conferences, and programs presented by national organizations such as the Association of Private Sector Colleges & Universities (APSCU) are good forums.
How do I begin assessing the market?
Ron Holt: Examine the buy/sell activ-
ity in markets. Learn who is purchasing schools and in what areas. A small school in a rural area might not be interested in purchasing an urban school but might be interested in acquiring schools in other rural locations. Todd Gates: Once you have selected an advisor, have a candid discussion to determine how much your school might be worth in the current market. Regulatory- and compliance-related changes over the past year or two have had a signiﬁcant impact on how the investment community values potential acquisitions. A preliminary discussion about the speciﬁc business will help owners manage their valuation expectations and avoid starting the sales process with unrealistic or unattainable liquidity goals.
| B EAU TYLINK | DE STINY | 2012
Table of Contents for the Digital Edition of Beauty Link - Volume 4, Issue 4
Message from the aacs president and cea co-chairs
Workings of Washington
Meet Your New CEA Co-Chairs: Carol Woodard and Dan Cavanagh
Interrupted and Distracted: Five Ways to Get Back on Track
And then there’s compliance
Going Mentor: Paying Your Success Forward
A student’s perspective
Deliver Extraordinary Education: Building Your Dream Team
Considering a Sale: Expert Perspectives on Selling a School
Diversifying Your Offerings: One School’s Approach
Getting Ahead: 2013 Trends in Hair, Skin and Nail Education
Route to Succession: Planning the End of an Entrepreneurial Journey
Beauty changes lives
Strategic Success: Planning, Implementation and Accountability
What Makes a Dream Job: Fulfillment Is Just Around the Corner
The Video Test: Improving Behaviors with Evidence
AACS listserve q & a
Mastering Body Language: Six Nonverbal Cues to Use in the Classroom
The AACS Annual Convention & Expo Photo Spread
Associate member profiles: shears/clippers
People & places
New school members
Upcoming 2012-2013 events
Index to advertisers
Beauty Link - Volume 4, Issue 4