Entry Level Orlando Real Estate Jobs

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Entry Level Orlando Real Estate Jobs Powered By Docstoc
					    Broker Opportunities
in the Private Career School
    and College Industry

        Orlando, Florida
         June 19, 2010

              Barry J. Berkowitz, Ph.D., CBI
              Susan F. Schulz, Ed.D.
Who We Are

• Barry Berkowitz
  • President of Berkowitz Acquisitions
  • President and Broker for Schools for Sale International, Inc.
  • Secretary for BBF
  • CBI for IBBA
• Susan Schulz
  • President of Susan F. Schulz & Associates, Inc
  • Owner and Real Estate Associate for Schools for Sale
    International, Inc.
What are Private Career Schools and Colleges?

•   Trains people for quick hiring into entry-level jobs
•   For-profit or not-for-profit
•   Occupational-specific training
•   Certificates through graduate degrees
•   Located throughout U.S., Canada, South America, and beyond
•   Examples
     •   University of Phoenix
     •   DeVry Institute
     •   New Horizons
     •   Local massage therapy training
     •   Cosmetology schools
Fit Within Higher Education

• Ranges from mom and pop schools to publically
  traded, multi-campus companies
• Sometimes seen as aggressive marketing
  organizations enrolling anyone to benefit from
  government funding
• Typically serves the underserved
• Strong contributor to the tax base
Annual Enrollment at All Levels by Sector
              2007- 2008
Award Distribution at Career Colleges
             2004 - 2005
Job Enhancements Reported by Students
  Who Attained Certificates or Degrees
    Projected % Change in Employment
in Fastest Growing Occupations, 2006-2016
 Average Published Tuition and Fees by
Institutional Type and Control, 2006-2007
Sources of Tuition Funding

•   Government loans and grants
•   Local Workforce grants
•   Veterans
•   Vocational Rehabilitation
•   Banks
•   In-house lending
          Annual Enrollment
in Title IV Eligible Career Colleges
Current Issues for Career Colleges

•   Gainful employment
•   Debt ratio
•   Aggressive marketing tactics
•   Publically traded companies
•   Profit taking
Who Regulates Private Career Schools and Colleges?

  • State licensing boards
  • Accrediting agencies
  • Programmatic boards like Board of Cosmetology,
    Board of Nursing
  • Department of Education
  • Other
National Default Rates by Sector
Career Colleges in Florida (Approx. 800)

Of 307 degree-granting institutions in Florida:
    •   168 are career colleges and universities
         • 77 career colleges are less-than-2-year institutions
         • 45 are 2-year
         • 46 are 4-year-or-more
Students in Florida’s career colleges are:
    •   Female – 61%
    •   Enrolled full-time – 83%
    •   Over 25 years old – 54%
    •   Minority – 51%
In 2007-2008, 13% of all postsecondary education students in
Florida attend career colleges. Florida’s career colleges
    •   40% of certificates
    •   19% of associate degrees
    •   7% of bachelor’s degrees
    •   7% of master’s degrees, and
    •   9% of doctoral degrees.
Florida Career Colleges
Marketing Strategies

• Word-of-Mouth
• Internet
• Local Print Media Billboards
• Radio
• TV
• Lead Generation Companies
The Current M&A Market for Career Schools

• Current focus on career schools for training and
• Current Wall Street Focus
• Long-time school owners see an opportunity to sell
• Investors see opportunities to buy
Who Acquires Career Schools and Why?

• Platform companies to gain a new or competitive
  market space
• Private equity groups who want to add career schools
  to their portfolios
• Other school owners who want to expand or gain
  accreditation, Title IV Funding or other benefits for
  their schools
Who Acquires Career Schools and Why? (cont.)

• Other school owners who want a new location for any
  number of reasons
• International school owners who want a presence in
  the U.S.
• “I always wanted to own a career school” people.
The Motivation to Sell

•   Cash out
•   Burned out, Time to move on
•   Retirement, illness, divorce
•   Too many troubles in the school
•   Lack of capital to bring the school to the next level
Getting the School Ready for the Market Place

 • Focus on school growth especially during the selling
 • Enhance the organization chart. Have strong staff to
   address the questions: what does the owner do and what
   will it cost to replace him/her?
 • Formalize policies and procedures
 • Clean up any regulatory issues
 • Create a document room
 • Decide what to tell staff
 • Double check change of ownership procedures with all
   regulatory bodies
Documents Needed to Sell

• In addition to the normal items in the Confidential
  Business Review (CBR) there also needs to be
  information about:
   •   Enrollment Figures
   •   Class Starts
   •   Retention Rates
   •   Job Placement
• The contents of the Document Room will need to be
  complete and organized.
How to Market a Career School

• Reach people in the career school sector, private
  equity groups who want to add career schools to their
  portfolios, others
• Find new markets that may be interested in the
  career school sector
• Work with specialists in the career school sector who
  already have the contacts and resources
The Sales Process

•   Can be lengthy
•   What to watch for in the due diligence process
•   What events are linked to regulatory requirements?
•   Use your experts
•   Your role
Risks and Obstacles

• What you don’t know
• Regulatory requirements before, during, and after
• Timing, Deadlines
Your Next Steps

    • Resources
    • M & A Specialists
                          Contact Us

Barry J. Berkowitz                     Dr. Susan F. Schulz
6615 W. Boynton Beach Blvd., Ste 350   P.O. Box 2589
Boynton Beach, FL 33483                Boca Raton, FL 33427
(561) 241-2412 Tel                     (561) 483-9554 Tel
(561) 375-6338 Fax                     (561) 451-4602 Fax           

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