Is there a rule-of-thumb/equation for how much I can value a student’s worth at?
Beyond payment if tuition? There doesn’t seem much
A quick look via Google shows a lot of ways to make a valuation of the school you are selling, but as far as students are considered, beyond the hard number of paying students? Not much. Valuations seem to me to be book value of hard assets + current income streams
The calculations will be based on the number of students in each year group, additional income, bursaries, etc. with the valuer assessing the sustainable level of occupancy or roll numbers. This will have regard to historic occupancy and factors that might affect future occupancy
1 Like
From what I’ve seen on local online listings, 頂讓-type sales go cheaply but i’m not sure if thats because those schools are on a down-slope or if is just the way of things here?
I have worked hard to get the school to get to where it is now 100+ students each one billing 70k+ per year. It has taken a lot of blood sweat and tears to get here. The school is recently renovated at well over $1m and I have spent a lot on advertising to get to where I am.
I think there is a misconception that schools are cheap to set up and run and can be bought cheaply as such. It’s not true. Just finding a suitable premises that met building regulations (extremely strict) took over a year.
Hoping to get back a few million from this.
7 mill revenue per year, what’s the profit?
1 Like
Just out of curiosity, how is that sustainable? Like @meishijia suggested, it seems like a fair chunk of that NT$7m+ per year would be eaten up by salaries and rent and stuff, no? I guess you’d need say 3-4 teachers or something?
Profit is well over 50%. How do I achieve that? Well, having only two teachers and charging high tuition (think one on one tuition prices but for a group class) helps.
2 Likes
I’m sure there are business appraisers out there who specialize in such thing.
But as far as tangible assets? A few office table made of particleboard, some scrap metal, and outdated computers? Not much unfortunately.
Let those appraisers handle these kind of things.
I helped an expat clear out a 20 foot container storage filled to the brim of office equipment for a tour operator. I barely got 30,000nt out of it. Most of that computers, a DJI drone that’s several years out of date, and that’s including hauling any metallic items to the recycler for scrap value.
You’d normally pay to get rid of it.
That sounds risky. What if a teacher has to quit, is deported, or dies? How long will it take to hire new teachers and keep them on track? That sounds like putting all your eggs in 2 baskets. That’s 50% of your capacity gone if something happens.
Joy schools do it based on current student numbers only.
What’s the value of an existing student? Would 20k be unreasonable?
One would need to see the accounting and bank books and see what you actually earn in profits each year. As schools don’t own much in the way of assets, such as the building, or the students, someone is really buying based on current students who may not stay if you sell.
1 Like