You want to sell your training institute? Then it's good to know what the acquisition market in the field of training institutes looks like. An in-buyer is online learning, which has made huge strides in recent years. In the process, we are also learning more and more later in life and looking to connect with the business world.
Training institutes have become more popular, but more students - of all ages - also means joining forces. Options are increasing, there is a growing demand for customization and for combining different forms of education. Increasing market share increases the future-proofing of institutes.
There are many ways to value a business. A common method of expressing the value of a business is "a factor x gross annual profit." This factor is also called multiple and another designation for gross annual profit is EBITDA (Earnings Before Interest Taxes Depreciation and Amortization).
In business services, to which a training institute belongs, an indicative range of EBITDA multiple of 4.6 to 5.5 is currently used, according to the Brookz Takeover Barometer. The average EBITDA multiple across all SME sectors is 4.90.
The valuation of a business is often the starting point for negotiations between buyer and seller. The outcome of these negotiations is the final sales price. So valuation and price are two different quantities. Besides valuation, the price is also determined by possible scarcity in the market, bargaining power of the parties, the strategic value of the business for the buyer and possible synergy effects for the buyer (cost savings, purchasing advantages).
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Do you want to buy a business or sell a business in the business services sector? With this Brookz Sector Monitor, we want to present buyers and sellers with facts, figures and an outlook that provide insight into the number of transactions, the value development of businesses and the latest trends and developments in the business services sector. Because in every buying or selling process, thorough preparation gives peace of mind, overview and structure.
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Training institutes are under pressure. Temporary hires are decreasing as there is an influx of students. They all need (thesis) guidance, advice regarding (inter)national positions and are looking for balance in studying, working and mental health in a hurried society. For workers, a greater challenge than ever before.
In figures, the number of training institutes in 2024 looked as follows(CBS):
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A number of trends and developments will inevitably cause changes in the coming years, but also offer training institutes many growth and acquisition opportunities:
Rabobank writes that students are searching for a new balance. Where studying online used to be the ultimate, there is now an increasing need for a combination of online and physical education.
Digitalization is accelerating. People are expected to do preliminary work at home, which means that lessons are being flown through at lightning speed. In the process, there is an increasing demand for customization and greater reliance on students' independence. In higher education, this has been taken for granted for years, yet challenges arise in practice.
The Netherlands is in the top five of European countries in terms of participants in lifelong learning. Women in higher education in particular are no longer missing out on opportunities and are enrolling in new training programs more quickly. The Dutch Council for Training and Education has studied that we are motivated to keep learning, to increase career opportunities and to keep up.
Uniformity is finite, according to Rabobank research. There is more focus on personal success and ambitious goals. Consequently, the workload in education is increasing, as more attention is being paid to students' personal goals, in other words: customization.
