How Private Schools Are Actually Valued

Private schools rarely trade on a single multiple. The headline number — typically a multiple of seller discretionary earnings — is the starting point of a conversation, not the conclusion of one.

Four factors consistently move valuations more than the multiple itself: (1) the consistency of enrollment over the trailing three years, (2) whether real estate is included and how the underlying lease or mortgage is structured, (3) staff tenure and the presence of a credentialed lead administrator who is not the owner, and (4) the durability of the waitlist.

In our experience, two schools with identical EBITDA can sell for prices that differ by 40% or more depending on how those four factors line up. Understanding which ones describe your school is the first step toward a serious valuation.