IBA, as the premier business brokerage firm in the Pacific Northwest, is firmly established as a respected professional service firm in the legal, accounting, banking, mergers & acquisitions, real estate, and financial planning communities.  Periodically, we will post guest blogs from professionals with knowledge to share for the good of owners of privately held companies & family owned businesses. The following blog article has been provided by Wendy Leibowitz of Wendy’s Real Estate (https://wendysrealestate.com/):

Why IT School and Information Technology School Acquisitions Are Attracting Buyers Seeking Scalable IT Degree and IT Program Models

We’re on the other side of the 2020s now, and technology has entrenched itself in today’s society. While the book on AI and its uses is still being written, there are still a lot of companies that are going to need IT professionals. While there are IT schools that can be acquired, there has to be a plan. Otherwise, they risk being left behind, and they also risk not hiring the best people.

The IT field can undergo a lot of changes. This is why smart companies that are looking to acquire an information technology school want to get one that can scale their degrees and program models. Here are several of the reasons behind this kind of thinking:

The Reasons Regarding the Scalable and Flexible Models

2020 changed the world in many ways, and one of the most impactful ones was how people conducted meetings and took classes. Despite the protestations of a lot of businesses, people like the online model, and it’s going to be nearly impossible to get that genie back in the bottle. That’s why investors should pay extra attention to IT schools that are ready to scale in ways like:

• Rapid Digitization – Even though online education was a thing since the late 20th Century (the University of Phoenix started online classes in 1989), the post-pandemic world saw this type of learning explode. This is much more scalable than having brick-and-mortar schools around the country.
• Stackable Credentials – Rather than the traditional college curriculum, IT students can get certifications that stack toward a degree. Along the way, they can learn valuable skills that will help in today’s work world.
• Virtual/Hybrid Infrastructure – The brick-and-mortar places aren’t all gone. Certain courses will still need hands-on instruction. But the students will have a much easier commute, only going in when necessary, and they will spend the rest of the time online.   

The Reasons Regarding Filling the Gap For Skilled IT Workers Amid High Demand

While traditional colleges and universities do have classes geared toward some of these subjects, they are still relatively behind what is needed. That’s where an IT School can be of great use. Here’s why:

• Rapidly Growing Job Market – When it comes to job types, IT ones are in much more demand. That means companies want to hire people who they know will get the job done. Bringing in IT grads means that they will have to devote a lot less, if any, time to training a new hire.
• The Skills Gap – The faculty at a traditional school is likely to be behind the curve when it comes to training people for this type of work. They might not have the equipment, either. An IT school will give specialized training.
• Potentially Lucrative Careers – While it might not be out of the gate, an IT worker can hit above $100,000 on a median basis. That will make it easier for them to help care for their families or just themselves. Depending on the type of job they have, they could be virtually recession-proof.

The Reasons Regarding Revenue For the IT Schools

Yes, IT schools exist to help students learn important technology and skills. They also need to make money. Here’s how they can be successful at that:

• Recurring Revenue Streams – The name of the game is to get people to pay money for this education. That means the school can offer subscription-based or recurring tuition models. That is money coming in to get things like equipment and paying faculty.
• Getting Interest From Private Equity Firms – They can get money from these firms, whether in an investment or an acquisition. The Private Equity firms want to consolidate EDTech, and this is one area that has strong growth potential.
• Building a Better Workforce – Again, vocational learning is becoming much more popular than the traditional college degree. IT graduates will be prepared for their job … and also have a much higher likelihood of landing one soon after they finish.

The Reasons Regarding Technological Advancements in Education

Technology isn’t just helping the workforce. It’s also advancing education as a whole. That’s because of things like:

• AI/Personalized Learning – This is an excellent way for students to learn, since the AI can customize a course that suits any unique need. Buyers want forward thinkers, and if an IT school uses AI, it can help them get money.
• Data-Driven Operations – Analytics are part of today’s business world, and IT schools now use them to leverage things like enrollment and increasing operational efficiency. A buyer will know they are investing in a place that runs smoothly.

So, to break down all of the above things into a fairly bite-sized morsel: These buyers want IT Schools so that they can make them into technology-enabled platforms that are skill-based while also having high financial growth. In other words, both the investors and the students can wind up making a lot of money.

On top of that, these schools will constantly be evolving with the needs of the students and employers. They’ll learn what is currently being used, not what was popular two years ago. Just like technology itself, they’ll always be on the lookout for the next new thing.

The world is going to continue on this technology track for quite some time, so it’s time for the workforce to be ready. Fortunately, it looks like things could benefit both the worker and the investor. That makes it all a great use of money.

If you have questions relating to the content of this article, Wendy Leibowitz of Wendy’s Real Estate would welcome the opportunity to answer them.  Ms. Leibowitz can be reached at [email protected]. 

IBA, the Pacific Northwest’s premier business brokerage firm since 1975, is available as an information resource to the media, business brokerage, mergers & acquisitions, and real estate communities on subjects relevant to the purchase & sale of privately held companies and family owned businesses.  IBA is recognized as one of the best business brokerage firms in the nation based on its long track record of successfully negotiating “win-win” business sale transactions in environments of full disclosure employing “best practices”.