Horizons Fall/Winter 2020

INDUSTRY UPDATE COLLEGES & UNIVERSITIES

Higher Education Institutions & The Momentum of M&A Activity by Chester Moyer, CPA & Corey Robinson, CPA N ormally during this time of year, the media often shares stories about colleges and the return of fall sports.

One thing that COVID-19 has led to is administrators and governance evaluating more creatively what decisions they can make that will increase the likelihood that the institution will thrive after COVID-19 has passed and the next challenge is confronted. One approach that is continuing to gain momentum in the higher education space is the up-tick of mergers and acquisitions (M&A) activity. The potential benefits of M&A transactions can be attractive for schools hoping to thrive in the future. Schools that are very tuition dependent can increase their tuition by increasing the number of students.

This fall, the media is leading with stories of campuses trying to manage students returning to campus during COVID-19. Making decisions during this time has not been easy, and there is a lot that students, parents of students, faculty, staff, and administrators have been discussing. In many cases, the decisions have placed people in situations that appear to have no clear solution. Of course at this time, a lot of the impacts and outcomes to students are unknown.

18 Higher Education institutions & The Momentum of M&A Activity