CASE STUDY
Student Education Business Fully Under Management – NSW
Transaction Managed by Morgan Business Sales
Overview
Business: Student Education Business
Industry: Education (Under Management)
Location: NSW
Size: Revenue: $5.6M
EBITDA: $1.2M
Staff: 20 permanent, 25–35 casual
Years in Business: 30+
Lead Broker: Sean Wolrige
Morgan Business Sales was engaged by a NSW-based student education business, fully under management and generating $5.6M in sales, to manage the sale of their company.
Objective
The owner of this NSW-based education business founded the company 30 years ago and had recently stepped back to focus on other ventures. Residing remotely, he was ready to transition out of the business and wanted to achieve a successful sale with minimal disruption to operations.
The client chose Morgan Business Sales for our experience selling businesses of a similar size, national presence, extensive buyer network, and market leading systems and technology. Strong personal chemistry and alignment on performance-based outcomes further reinforced his confidence in our team, with business broker, Sean Wolrige, leading the deal.
Summary
The business attracted nine offers from high-net-worth individuals and strategic buyers. Morgan Business Sales executed a targeted, confidential marketing strategy, using a secure web-based IM and selective buyer outreach, achieving a sale price of 20% above the initial guide. The transaction completed within six months, with the owner acting as a short-term consultant post-settlement.
This business sale case study demonstrates how Morgan Business Sales successfully structured and executed the sale, highlighting expertise in education and under-management businesses and the ability to deliver exceptional results.
Challenges
1
High buyer interest: Initially marketed with an asking price, the business received overwhelming enquiries. Strategy shifted mid-process to an Expression of Interest (EOI) approach, with nine written offers and three exceeding $5M.
2
Working capital agreement: The business collected deposits up to two years in advance. Both parties initially had divergent views on required working capital, which had to be reconciled to ensure the buyer could operate smoothly post-settlement without additional cash injection.
3
Time pressure: The seller had a fixed exit timeframe, adding urgency to negotiations.
4
Confidentiality: Maintaining confidentiality in a closed industry and managing buyer demand required a highly strategic, tailored sale process.
Despite these challenges, careful planning and collaboration ensured the deal proceeded smoothly and confidentially.
Strategy & Approach
To maintain confidentiality and target the right buyers, the business was marketed selectively.
Valuation & Advisory
A detailed financial analysis was conducted to determine a defensible sale price, factoring in EBITDA, revenue, forward bookings, and working capital requirements.
Confidential Marketing
- Interactive, secure web-based IM showcased the business professionally to qualified buyers
- Non-identifiable listings on business-for-sale platforms
- Targeted outreach to Morgan Business Sales’ national buyer database
- Private approach to a single PE firm with in similar businesses
Buyer Targeting & Outreach
- Focused on non-industry buyers and high-net-worth individuals
- Strategic focus: The final buyer came from a complementary business, and this acquisition allowed them to extend the lifetime value of their customer base.
Negotiation & Deal Management
- Guided all parties through offer negotiation, deal structuring, and due diligence to ensure a smooth completion.
- Nine offers were received from separate parties, with three rounds of negotiation leading to the successful bidder.
Final Result
Final Sale Price: >$5M
Buyer Type: Strategic buyer from a complimentary business
Deal Structure: 80% upfront, 20% earn-out after 12 months
Timeline: 2 months on market; 6 months from preparation to settlement
Owner Involvement: No post-settlement operational role; acted as consultant for 3–6 months
Value Creation: Achieved a sale 20% above initial expectations
Key Insights
- Strong preparation, comprehensive documentation, and a capable management team attract broad buyer interest.
- Motivation and clarity of objectives drive timely negotiations and successful outcomes.
- Targeted, confidential marketing campaigns combined with expert CIM presentation maximises sale value.
Market Takeaway
Strategic buyers continue to pursue companies that offer scalability and continuity, especially where blue-chip client bases and recurring revenue exist.
Advice for business owners considering a sale:
Prepare early, align expectations, establish a clear exit strategy, and work cohesively with all parties for a smooth and successful outcome.
About Morgan Business Sales
Morgan Business Sales is Australia’s leading mid-market business sales firm, specialising in M&A transactions across a wide range of industries including civil, construction, manufacturing, healthcare, technology, education, transport, and more.
With over 100 years’ of combined experience across thousands of successful transactions, our team helps business owners achieve maximum value when exiting or expanding through acquisition.
Ready For Your Success Story?
Request a confidential call with one of our expert brokers today and explore what a successful exit could look like for your business.
