How to Value Your Private School for a Sale
Valuing your private school is one of the most important steps when preparing for a sale. Whether you operate a K–12 school, ESL institute, or career college, understanding how buyers evaluate your institution will help you position it for maximum value.
Unfortunately, there’s no simple online calculator or one-size-fits-all formula to determine the value of your school. The valuation process is complex, influenced by multiple factors including financial performance, market demand, real estate value, and the school’s brand reputation.
Today’s buyers range from private equity firms and high-net-worth individuals to international school operators seeking stable, asset-backed investments in the education sector. These buyers—whether strategic or financial—bring different priorities to the table, and their valuation approach can vary widely.
Key Components of Private School Valuation
At its core, the valuation of a private school typically includes two major elements:
1. Fixed Assets
These are tangible, physical assets that belong to the school and are listed in its financial statements. Fixed assets often include property, equipment, and other capital investments. The commercial value of the school’s real estate, if owned, is a major contributor to valuation.
2. Goodwill
Goodwill reflects the intangible value of your school beyond its physical assets. This includes your reputation, market positioning, curriculum strength, regulatory standing, and operational history. Goodwill is more subjective and often requires a detailed financial analysis to determine its value.
Common Valuation Methods
There are three widely used approaches for calculating goodwill in a private school sale:
Multiple of Net Profit – A standard valuation approach using historical net income
Multiple of Adjusted EBITDA – The most common method used by investors, reflecting normalized earnings before non-operational costs
Multiple of Gross Revenue – Occasionally used for benchmark purposes, especially in early-stage or high-growth schools
Other Factors That Influence Valuation
Additional variables can affect both goodwill and the final sale price:
Enrollment trends and student retention
Local competition and market saturation
Reputation and word-of-mouth in the community
Recent regulatory or accreditation reports
Leasehold vs. freehold status and property terms
Staff tenure and leadership stability
Barriers to entry for new competitors
Next Steps
If you are considering selling your private school and want a professional valuation or market assessment, Halladay Education Group can help.
📧 Email: info@halladayeducationgroup.com
📞 Call: +1-800-687-1492
🔗 View our current listings or continue exploring our website to learn more about our M&A advisory services for private schools, ESL institutes, and colleges.