How Much is your School Business Worth Part 1 -Believe Iboyi



Towards the middle of last year, we fast tracked the selling and buying of a school.
We had a client who wanted to buy and a client who wanted to sell. Our job was to ensure the smooth transitioning of the process by the clients end -to- end

The actual gist is on the analysis of the school to be sold. On analysis of the furniture and fittings of the school, there were about 100+ tables and chairs counted as one. these tables were kinda old and some needed repairs hence entire price was fixed at about 65,000 naira

Those were probably the most expensive things the school had. All the Calendars, charts, flash cards, white boards, play toys, teddy bears and other teaching aid stuff wasn't even worth 60,000, the number of students in the school based on tuition fee wasn't worth 500,000.

The buyer didn't need the school text books, teacher's "injured" tables and chairs and some other stuff.
The school owner requested for a goodwill of 500,000 base on perspection I guess.
There are other details thou which brought the selling price to about 1. 7 million or so

When it came to pricing and price review, every thing in the price list was crashed based on second hand value, and this brought the entire money worth of the school to less than 650,000 naira. Someone's over eight to ten years sweat equity, damn!

During the pricing process, I learnt some vital business lessons about the school business

  1. No school has absolute control over their enrollment, your student yesterday can cease to resume school tomorrow. This was the argument of the buyer, when they asked the seller to guarantee if all the students will resume during this coming term. Obviously, no one can.

             The main reason marketing drive should be an intentional part of the school.                  Schools need to intentionally design marketing strategies and work at            implementing    them.

  1. When people acquire some kind of businesses, staff salary isnt considered when they have a way to swipe theirs. The over head cost of the selling school was over 200,000 monthly ( salary and other running cost) but it was taken out of the equation as the buyer said they dont need the selling schools staff.

Dear educator, some real business people have or are seeing business potentials in school business and are coming in to upturn the school business ecosystem. You need to brace up and learn the business of school business.

I believe in your success.

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