Week 6 BU 620 Assignment - Education Mergers and...

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Education Mergers and Acquisitions 1 Education Mergers and Acquisitions – The Good and the Bad Kyana Myles Technology and Innovation BU620 Dr. Michael Marticek August 20, 2016
Education Mergers and Acquisitions 2 Abstract (Education Industry Sees 415 Mergers & Acquisitions, Worth Nearly $18 Billion, in 2015, 2016.) The education industry saw a spike in education acquisitions and mergers in 2015 that generated a worth close to $18 billion. The investment bank Berkey Noyes recorded 415 mergers and acquisitions in 2015 in the industry of education. This was a large jump of about twenty six percent from reports in 2014. The top two financial transactions for 2015 were the acquisitions by TGP Capital and Leonard Green & Partners of Ellucian who provides analytic solutions for data to higher education institutions and Lynda.com purchased by LinkedIn. There total costs of those acquisitions were $3.5 billion and $1.5 Billion respectfully. The majority of the acquisitions and mergers occur in the professional training services area, but K-12 media and tech are very close with their volume increasing. Higher education transactions are leading the way. The K-12 industry has a different focus in areas such as content management, data and assessment, and human capital and talent management. (Noah education holdings ltd. announces shareholders' approval of merger agreement. (2014, Jul 25). Mergers occur in all industries, and education is not left out of creating new businesses. China is always looking to create advancements in education. In 2014, Noah Education Holdings Ltd. one of the leading providers of education shareholders voted and agreed on a proposal to approve the merger between Rainbow Education Holding Limited and Rainbow Education Merger Sub Holding Limited to file with Registrar of Companies of the Cayman Islands. Noah Education leads the way in China in providing English language training, supplemental education, and high-end kindergartens. They operate and own about forty-eight high end kindergartens as well as operate five primary and secondary schools as well as ten supplemental education centers that have a primary focus on English language training for children between the ages of 3-12. This merger will
Education Mergers and Acquisitions 3 be beneficial for all parties involved as it will grow the ability to teach many around China the second language of English. (Lang, 2003) When looking at the reason for most mergers they are purely financial. When deciding as an education institution if a merger should occur, finances cannot be the primary goal. There should be a look into how much diversity an institution has. Too much or too little can be an issue. There are three critical areas that can cause problems in public policy: funding, planning, and regulation. Not every merger is voluntary, but in cases were institutions are looking to create a better haven, voluntary works better in the grand scheme of things. There are many reasons that institutions want to merge many for good reasons such as more government funding, secure net new resources for programs and services. For larger institution mergers the goals grow to things link

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