Valuing an online education business, with little subscription rev. or tech
December 10, 2024
by a searcher from Texas Tech University in Dallas, TX, USA
Looking for advice on valuing an e-learning business with unique characteristics:
We're evaluating an e-learning company with:
-Proprietary Learning Management System (LMS)
-In-house content creation platform
-Mostly a direct-to-consumer (D2C) sales model
-One-time purchase model rather than subscriptions
While the company has some tech components, it operates more like a traditional education business than a tech company. I'm particularly interested in: -Appropriate Revenue/EBITDA multiples for this type of business -Comparable company valuations in the e-learning space -How to factor in the proprietary technology when it's not the core revenue driver
If you have experience valuing similar businesses or can point me to relevant industry benchmarks, I'd greatly appreciate your insights. I'm especially interested in hearing from those who have valued or sold e-learning companies that don't fit the typical SaaS model.
Thank you!"
from Massachusetts Institute of Technology in Portland, OR, USA