The Peterson School

19 Sep The Peterson School

The school’s mission is to train the very best tradespeople, in both theory and hands-on, state-of-the-industry laboratories at locations and times convenient for its students. The training programs are thoroughly researched and carefully designed to place students in realistic plan and service operations. The programs and courses are constantly modernized and updated to parallel today’s new technologies.

What made the business attractive to buyers?

• Well known and respected name in the industry
• Stable to slightly growing EBITDA through the Great Recession
• Excellent locations
• 70 Experienced Instructors
• Comprehensive Curriculum in Multiple Trade Areas
• Well-known Corporate Customers
• High growth potential

Challenges

•  Competition from well funded national companies
• Lack of significant online presence for enrolling in or taking classes

Why did the owner want to sell?

Having owned the company for forty years, the owner was ready to spend more time away from New England.  He realized that in order to grow the company needed a new marketing approach and had to use technology more effectively.  He also knew he did not have the desire to invest the time and resources to make those changes.

Beacon’s Role and Results:

Beacon Equity Advisors assisted with the valuation, marketing and deal negotiations necessary to bring about a deal that allowed the business owner to spend more time with family and convert years of hard work into cash for retirement.

The Process:

Beacon marketed the business for approximately nine months to hundreds of corporate buyers and entrepreneurs seeking an opportunity in the For-Profit Education industry.

• Beacon worked closely with approximately 50 buyers who showed strong interest.
• We narrowed this field down to 10 groups who submitted letters of interest. 
• 5 buyers were invited to meet with management and submit offers.
• 2 groups made several bids until a deal was struck.

The Buyer

The ultimate buyer was an entrepreneur with a strong management background and significant investable cash.  The buyer was referred to Beacon by his CPA, originally seeking an acquisition opportunity in the industrial space.  After being introduced to the school, he was able to leverage his family’s academic background to realize the growth opportunity presented in vocational education.

The business was sold for the target price and terms Beacon outlined for the owner prior to the start of the engagement.

About Beacon Equity Advisors – Since 1985 Beacon Equity Advisors, a leading New England Merger & Acquisition (M&A) advisory firm with offices in eight key New England cities, including in Boston, MA Providence, RI and Manchester, NH has represented owners selling closely held service businesses.  Beacon Equity Advisors’ experience selling value add service companies enabled them to tell an engaging story about this Boston, MA area service company in the M&A marketplace.  Highlighting key enterprise attributes enhanced the company’s value as Beacon identified prospective buyers who were able to clearly recognize synergistic opportunities. By matching the right buyer with the right seller, shareholders were able to realize an above market value multiple in the sale of their business in a transaction beneficial for both parties. Beacon represented the Board of Directors and Shareholders in identifying the buyer, negotiating deal terms and brokering the transaction.