September 24, 2021

Capella & Strayer tie the Knot!

capella and strayer merge

Strayer Education Inc. and Capella Education Co. announced Monday they are merging, in a $2 billion deal that will make the combined company one of the largest for-profit college operators in the country.

Shareholders in Herndon, Va.-based Strayer will own 52 percent of the combined company’s stock, while Capella investors will hold the rest. Both boards have voted unanimously for the deal, which the companies anticipate will close in the third quarter of 2018. They will need state and federal approvals, including a thumbs up from the Department of Education.

Neither Strayer nor Capella has endured the legal headaches of some of their competitors, yet tepid growth in the number of people seeking degrees remains a hurdle — but one that investment analysts say the combined companies may be able to overcome.

Link to article: https://www.washingtonpost.com/news/grade-point/wp/2017/10/30/for-profit-college-operators-capella-and-strayer-join-forces-in-a-2-billion-merger/?utm_term=.2e826d6c5d1a 

 

Analysis of the proposed merger by Trace Urdan:

In the all-stock transaction as described, CPLA investors will receive 0.875 STRA shares and own 48% of the combined company post-merger. On a combined basis the new company will offer 135 degrees and certificate programs to more than 80,000 students. Its revenue will approach $900 million annually, its EBITDA will approach $130 million and its distributable free cash flow will be approximately $80 million. Its implied equity value will be roughly $1.9 billion.

The new entity will combine back office operations and share best practices, but each academic institution will be separately and independently maintained and operated. Pending approval by the U.S. Department of Education, each of its accreditors (HLC and Middle States) and various state regulatory entities, it expects to close the transaction within the next eight months. The new parent company will change its name to Strategic Education and retain the STRA ticker.

Link to full analysis:

https://www.linkedin.com/pulse/chocolate-bars-vs-candy-corn-sorting-strayer-capellas-trace-urdan/?trackingId=dRoiTGJ4KKEI1VdwCq%2FWaQ%3D%3D

DOE Will Allow Two Large For-Profit Colleges To Become Nonprofits

US Department of Education

The Education Department has offered its stamp of approval for the controversial sale of two massive for-profit colleges, Kaplan University and the Art Institutes, according to emails obtained by BuzzFeed News — allowing both schools to convert to nonprofit colleges. Kaplan, which was purchased by Purdue University, will become a public college.

The two high-profile conversions have been closely watched by the for-profit education industry, which sees them as a bellwether for future attempts to convert to nonprofits. More and more for-profit colleges have been eyeing conversions as the industry continues to struggle to enroll students.

But there were questions about whether conversions would be allowed by federal overseers. The Obama administration had begun to block such deals over concerns that schools would not actually operate as nonprofits, independent from the for-profit entities that once owned them. There were also worries in and out of the administration that nonprofit conversions were being used to evade regulations.

 

Link to article: https://www.buzzfeed.com/mollyhensleyclancy/the-education-department-will-allow-two-large-for-profit?utm_term=.ojznP2Dyy0#.kn14qB2PPN

 

Are changes in Title IX coming?

Betsy Devos for profit education

 

Wednesday, the U.S. Education Department confirmed that the education secretary, Betsy DeVos, would appear at George Mason University on Thursday to make a “major policy address on Title IX enforcement.” That announcement, previously reported by BuzzFeed News, heightened advocates’ fears that Ms. DeVos was poised to roll back the department’s efforts on mitigating campus sexual assault, a hallmark of the Obama years.

BuzzFeed had also reported that the department’s top civil-rights official, Candice Jackson, intended to revisit the department’s 2011 “Dear Colleague” letter — a directive that laid out exactly what the government expected colleges to do to protect students from sexual violence — through a process called notice and comment.

Link to article: http://www.chronicle.com/article/A-DeVos-Speech-on-Title-IX/241108 

Devos to potentially roll back Gainful employment and borrower repayment policies

devos gainful employment

DeVos Will Roll Back 2 Obama Regulations, a Blow to Consumer Advocates – The Chronicle of Higher Education.

The U.S. Department of Education is beginning the process of rolling back two Obama-era regulations aimed at holding for-profit colleges accountable and helping students who may have been misled or defrauded by them: the borrower-defense-to-repayment regulation, which was scheduled to go into effect on July 1, and the gainful-employment regulation, which was already in effect.

The gainful-employment regulation was meant to hold career-preparation programs accountable for the outcomes of their graduates. Specifically, if the estimated loan payments of a program’s graduates exceed a certain percentage of their income over a period of years, then the program would risk losing federal student aid.

The industry is finally feeling some relief

Link to Chronicle article:  http://www.chronicle.com/article/DeVos-Will-Roll-Back-2-Obama/240337?cid=wsinglestory_hp_1

 

Special discount for CECU Conference, formerly the CCA!

cecu

Special group Member discount for CECU Conference, formerly the CCA

Market Driven EDU Members, it’s not too late!
Don’t miss your chance to register at a discounted rate for the CECU Convention. Special member pricing is available to all maketdrivenedu subscribers.

Register by May 13th and use the code MDE to receive 10% off your registration! View the Convention website for the full schedule and detailed information about the show.
http://www.cecuevents.org/convention/registration/ use the code MDE to receive 10% off or email Kelley info is below.

Don’t miss your chance to join hundreds of sector executives and thought leaders at the 2017 CECU Convention. This is the largest gathering of the sector all year and you won’t want to miss the networking opportunities, education sessions and prizes that await in the EXPO Hall.

Hope to see you in Las Vegas, June 6-8th. For information, please contact Kelley Blanchard at Kelley.blanchard@career.org or 571-640-6471.

2017 Market Driven Education Industry Group’s 6th annual Education Advertising & Marketing survey

mdeud survey

It’s that time again, the 2017 Market Driven Education Industry Group’s 6th annual survey, in conjunction with Edufficient, one of the fasting growing EDU-specific Performance Marketing Agencies has arrived.

This survey has become a standard for the industry, bringing together Schools, Lead Providers & Agencies, helping to create an updated master list of industry service providers.

Hundreds of screened participants help make this a valuable tool for all those who participate.

  • All participants are reviewed for accuracy & relevance to the industry.
  • You must complete 75% of the survey questions to qualify and receive results!
  • All requests for survey results from non-participants will be denied!

Service providers contact information must be accurate to qualify. Remember, schools will receive your contact information so they can contact you, so please double check for accuracy.

All School contact information is private and will not be distributed.                        Only vendor info will be made available to participating schools.

Link to Survey:  https://www.surveymonkey.com/r/2MYH9MD 

Will Devos help spur growth in the for profit sector?

betsy

HP article:

Senator Elizabeth Warren (D-MA) was the first and only senator to really press DeVos on for-profit college accountability issues. She asked DeVos, who admitted to have almost no higher education management or college aid experience, if she supported protecting federal taxpayer dollars from waste, fraud, and abuse?  DeVos said yes. Warren said she was glad to know that, since Trump’s higher education experience consisted of fraud so bad at his fake unaccredited university that he paid out $25 million to settle claims from students and New York’s attorney general.

Warren pushed, asking DeVos exactly how she would stop fraud. DeVos: “The individuals with whom I work in the Department will ensure that federal monies are used properly and appropriately.”

Warren pressed further, noting that there are already “a whole group of rules“ written by the Obama Administration to protect college students. In particular, she asked DeVos whether she would commit to enforcing the gainful employment rule, which would penalize career college programs, whether at a for-profit, non-profit, or public college, that leave graduates with insurmountable debt. New data released by the Department confirms what for-profit colleges feared as they have lobbied fiercely against the rule: 98 percent of the programs flunking the test in its first year were for-profits.

DeVos responded, “We will certainly review that rule and see that it is actually achieving what the intentions are.”

Link to article: http://www.huffingtonpost.com/davidhalperin/devos-declines-to-support_b_14235348.html

 

Wash Post:

Some amount of deflection in responding to pointed questions is inevitable. In some cases, DeVos may not have figured out her position yet on various questions, some of which were overly-specific, and a bit unfair. I didn’t find it unreasonable for her to decline to commit to specific current regulations under ESSA (Every Student Succeeds Act) that she might seek to modify or change.

The most evasive language, in my view, emerged in response to questions about school and college accountability. DeVos was reluctant to commit to strong federal efforts to ensure that all schools will be held accountable. Asked about financial risks posed by charter schools with relationships to Charter Management Organizations, many of which are for-profit, she dodged the issue, responding merely that she would work to “hold schools accountable for educating students.”

And after ducking Sen. Tim Kaine’s (D-Va.) question about equal accountability for all schools receiving federal funds four times in person, she’s said nothing to clarify her position.

Link: https://www.washingtonpost.com/news/answer-sheet/wp/2017/02/01/the-good-evasive-and-very-bad-answers-betsy-devos-gave-to-questions-from-democrats-about-education/?utm_term=.071c53e754ee 

EDU Dive:

  • The growing potential for Secretary of Education nominee Betsy DeVos to support deregulation for for-profit colleges and rollback several guidelines for federal standards on postgraduate outcomes takes centerstage in a Huffington Post editorial this week.
  • Author David Halperin explains that the for-profit industry has reaped billions in public funded student loans while leaving students with little-to-no prospect for gainful employment. But inaccuracies in federal reporting on these outcomes has allowed DeVos and Republicans to challenge the policies outright.
  • DeVos declined to endorse guidance for gainful employment and accountability standards for federal funding to institutions of all types.

Link: http://www.educationdive.com/news/would-betsy-devos-scale-back-regulations-on-for-profit-colleges/435341/

Meet 2,800+ prospects at LeadsCon – final week to save an extra $150! Member Discount

leadscon new logo

Meet 2,800+ prospects at LeadsCon – final week to save an extra $150! Member Discount

Special MarketDrivenEDU group discount, lowest price available for this conference.
$150 Expiring Soon – New Business Partners Are Yours For The Taking!
A number of new sessions have just been added! This is the strongest and most robust LeadsCon program ever! All presented by 30+ of the top brands in performance marketing. Many of your customers and prospects have already signed up. Join your peers in Las Vegas to find new lead sources and acquire the latest best practices and regulatory updates on Lead Management, Lead Buying and Lead Gen. Early Bird rates expire this Friday on January, 27th and only through this email, can you save an additional $100 by using this special link: http://bit.ly/2k5IJUw

The Latest Conference Program Hot Topics Include:
• The Millennial Challenge: How to Build an Authentic and Quality Online, Social and Mobile Experience to Attract Millennial Shoppers and Build Brand Loyalty
• Are Mortgage Sales Ready for a Tesla Moment?
• Shifts in Insurance: How Top Agents Drive Growth
• Need for Transparency: Where are Your “Network” and “Agency” Leads and Clicks REALLY Coming From? It is Time We All Find Out
• Driving Lead Acquisition with Customer Journey Analytics
• View Full Agenda http://bit.ly/1PAdeQ5
• View Full Speaker List http://bit.ly/2jD2B52

This is your final chance to save a total of $150 from next week’s pricing. This special offer expires on January 27th, so act fast and don’t miss out! http://bit.ly/2k5IJUw
LeadsCon Room Block Filling Up Fast   NO VIP CODE needed:  you dont enter one it has the discount based on the link
Rooms at The Paris are beginning to fill up fast. Lock in our special group rate of just $170/per night before they sell out by clicking here: http://bit.ly/2iYebXi

Private Equity Investing in Education-Focused Companies 1/26 – Special Discounted Invitation

capital roundtable

MarketDrivenEdu is pleased to announce The Capital Roundtable’s full-day conference on Private Equity Investing in Education-Focused Companies.

 

Coming up on Thursday, January 26, in New York City, the theme of this conference is Why Investors Are Concentrating on Tech-Enabled Niches in Education.

 

As a friend of MarketDriveEdu,  you qualify for a special VIP rate — $995 ($500 off the standard rate). 

To register at this special rate, please call Sarah Burd at 212-832-7300 ext. 0, or email her at sburd@capitalroundtable.com.

Back in the day, buyouts of for-profit post-secondary school systems were the transactions that put private equity investors on the map in the education sector.

Nowadays, investors have shifted their focus to smaller companies that have carved out niches in the K-12, ed- tech, and continuing education and corporate training sectors — examples are, more sophisticated testing and measurement tools, better data management processes and meeting other specialized educational needs.

 

Our 20 knowledgeable speakers will boost your knowledge of this attractive area through their first-hand experiences and by answering key questions. See speaker list here.

 

Chairing the conference is Tom Formolo, a partner at New Harbor Capital. He formed the firm in 2013 after 23 years at CHS Capital, where he headed the education team.

 

At this conference, you’ll enjoy exceptional networking opportunities. The agenda includes ample time, with session breaks and a buffet lunch, to exchange ideas, swap business cards, and form new relationships.

 

To register, please call Sarah Burd, at 212-832-7300 ext. 0, or email her at sburd@capitalroundtable.com.

 

Please be sure to mention MarketDrivenEdu to receive this low VIP rate. And note this rate is not available online. 

Trump Wins! How does that affect your school?

trump

 

 

Donald Trump was elected as the 45th president of the United States on Tuesday in a stunning culmination of an explosive, populist and polarizing campaign that took relentless aim at the institutions and long-held ideals of American democracy.                                                                                                                                                                                                       Whats the impact on your business?

Gainful Employment?

For much of the race, Mr. Trump offered few clues about his specific plans for higher education, other than he shocked them all.

http://www.chronicle.com/article/Trump-s-Surprise-Victory/238346