2018 Fall issue of Horizons

INDUSTRY UPDATE COLLEGES & UNIVERSITIES

Prominent Mergers & Acquisitions in Higher Education by Chester Moyer, CPA

D uring the first six months of 2018, a record $2.5 trillion in mergers and acquisitions were announced, according to The New York Times . Although this record-setting pace reflects dollars being transacted for control of for-profit companies, the general trend of increased merger and acquisition activity can also be observed in the not-for-profit and public (state and local) college and university sector. Although, for colleges and universities, this trend is happening on a slower and smaller scale and with notably less consideration paid out in the process, relative to the for-profit sector.

Higher education has recently seen mergers and acquisitions driven by a variety of motivations:

∙ To expand market share

∙ To defend against industry disruptors

∙ To realize synergies of more offerings to students than would otherwise be possible

∙ To realize efficiencies that result in cost reduction

∙ To continue the mission of a struggling institution

Prominent Mergers & Acquisitions in Higher Education

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