Following a highly dynamic and lucrative year for the Education & Training sector in 2024, driven by growth in E-Learning and technological innovation, changing working patterns and a further adoption of workforce upskilling, the sector enters 2025 with deal values on an upward trajectory, with the expectation of a further uplift in deal activity as well-funded strategic and financial acquirors pursue high quality Education & Training Assets.
Key Points in Focus:
- The UK Education & Training sector has reaffirmed its position as a secure and stable location for strategic and financial acquirors to invest, with the UK accounting for 21.2% of global M&A activity in the sector in 2024, second only to the US.
- E-Learning assets continue to attract significant acquiror appetite, generating a 45.9% premium on valuations when compared to assets employing traditional classroom or blended learning models based on proprietary data involving deals completed by Gambit and our international colleagues.
- Active and well-funded private equity investors, who have invested successfully in the sector previously, are re-entering the market as confidence increases, creating significant competitive tension in M&A processes competing against ambitious strategic buyers and driving up valuation multiples.
- As levels of competition continue to intensify in the UK Education & Training sector, providers demonstrating innovative course delivery models focusing on critical training provisions, demonstrating high revenue visibility and quality of earnings and a clear return on investment for their clients will remain a priority for acquirors and capitalise on the increase in deal activity expected in 2025.
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