Research On Acquisition Strategies Of Private Higher Education Enterprises

With the development of economy and society,as well as the differentiation and diversification of education demands from urban and rural residents,private educational institutions in our country become more and more important,from pre-school to higher education,from non-degree to academic education.It is becoming multi-level,multi-type,and diversified.Under such a good opportunity and environment,private educational institutions developed rapidly.However,problems like the capital shortage,entry barriers,etc.seriously constrained its continuous enlargement of scale and further improvement of teaching quality.As an efficient integration method,investment merger is widely adopted in other market-oriented industries,while it is not widely used among private educational institutions.In recent years,with the state's policy support for private education,many domestic education groups have merged and expanded.Especially,since 2017,many private higher education assets have been listed in Hong Kong,and they have earned attention and recognition of capital market.Many private education institutions expanded their business by mergers and expansion strategy,but few institutions finally completed their business integration and school size's expansion.It is not only affected by many factors at the macro-economic level,but also by the development restrictive norm of education industry,as well as by the experience of mergers and lack of strategy.This paper analyzes the case of company A's acquisition of project X,and summarizes the problems in the acquisition,such as selection of acquisition objects,risk control,and transaction design.It takes solution as the core,and proposes concrete investment and merger strategy;then analyzes from aspects of merger motivation,target selection,risk control of process,and transaction design;and accordingly puts forward suitable acquisition strategies and advice for the company's reference during its acquisition.