You want to sell your tutoring company? Then it is good to know what the takeover market in the field of tutoring company looks like. Many students have concentration problems and find it difficult to concentrate at home, especially after the pandemic.
The number of acquisitions in the education world has increased dramatically in the last few years: 2022 stands out with 175 acquisitions.
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 tutoring company belongs, an indicative EBITDA multiple range 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).
Do the calculation
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.
Download report
The large educational backlog by COVID-19 seems to be the cause of the explosion in the number of tutoring companies. In one year, nearly 5,000 new businesses registered.
In figures, the number of tutoring companies in 2024 looked as follows(CBS):
With this online training from Brookz you are optimally prepared to largely sell your business yourself: 25 Powerpoint videos, a comprehensive valuation report, legal model contracts, handy templates, checklists and expert support. Plus 50% discount on listing your business on Brookz!
To Brookz Academy
A number of trends and developments will inevitably cause changes over the next few years, but also offer study counseling companies many growth and acquisition opportunities:
Because there are many small businesses operating in the market, a quality meter has been set up by the National Association of Tutoring Institutes (LVSI). When students and children need tutoring, it is important that there is actually a qualified person looking out for them.
Partly because of the pandemic, but also because of the needs of students, online education has become more and more accepted. According to Rabobank, it is obvious that this is now becoming the standard, but working with students in small groups is also important in connection with social contacts.
Programming is sometimes already offered in schools, but for tutoring companies, this is far from feasible. It is important that tutoring can also be provided in technology trends, such as blockchain, IoT and artificial intelligence.
Questions? We are at your service every working day from 09:00 - 17:30.
