The education market is one of the most active sub-sectors for M&A activity, driven by private equity funds either seeking platform acquisitions or looking to bolt-on new businesses to an existing portfolio company.
With levels of youth unemployment still high, especially in southern Europe, governments have been ramping up investment in their vocational skills programmes in a bid to improve competitiveness and productivity.
A combination of rising profits and a growing need to invest in talent has created a buoyant corporate training market, expected to grow at a CAGR of 10.6% from 2016-2020. It is, however, a market that remains highly fragmented with few players of scale and one populated by numerous small niche training providers.
The education recruitment market is underpinned by strong market fundamentals including a high teacher drop-out rate, many teachers taking early retirement, and increasing pupil numbers.