M&A-Network Mergers Alliance presents report on the global education market 2020

Munich, November 11, 2020. Knowledge is the most important raw material of the future. Digitalization opens up completely new possibilities for developing this raw material. Gamification, self- and distance learning or collaboration tools support or revolutionize classic face-to-face and frontal teaching. Covid19 has brought unexpected dynamics to the rather change-resistant education industry. In light of current developments, the “2020 Global Education Market Report” published by the global M&A network Mergers Alliance offers current insights into new business opportunities in the education sector. In the report, Mergers Alliance education experts analyze trends, technology and M&A activity, as well as barriers and regulations in 17 countries where Mergers Alliance operates.

Stas Michael, Managing Director of the Mergers Alliance, commented: “This report provides a comprehensive and detailed overview of the digital education market. It is the result of the work of our Business Services team from 17 countries with the world’s most important business locations. Education is a fundamentally growing industry and the M&A industry is poised to follow this trend.”

Jan Pörschmann, partner at Proventis Partners, on the results of the global study: “The global education market offers a wide range of opportunities with a focus on “helping people to help themselves”. The transaction examples show, among other things, that there is a high appetite in the afternoon learning market for tutoring. Transactions in traditional schooling are much harder to find.” Pörschmann sees the following four developments in particular as the most important driving forces: mobile learning, adaptive learning algorithms, personalized learning approaches and the increasing gamification of the learning process. However, he also identifies obstacles: “Content filtering, data protection and access problems slow down digitalization,” says Pörschmann.

According to the Mergers Alliance study, developments in education have spurred the M&A market with acquisitions across the education spectrum. Most transactions were domestic, but the trend towards cross-border takeovers is clearly increasing. The majority are strategic buyers who target domestic companies, while financial investors are increasingly looking for international companies.

Regionally, the global M&A scene in the education market is dominated by activity in Asia with around 41% of global education deals, followed by North America with 28% and Europe with 22%, with 71% of these acquisitions remaining at very low volumes under €10 million, while only around 7% are above a transaction volume of €100 million.

According to a global study by S&P Global Market Intelligence, spending in the global education market was $5.9 trillion in 2018, is expected to reach $7.8 trillion in 2025 and $10 trillion in 2030. Education technology (EdTech) spending, on the other hand, accounted for just 2.6% ($152 billion) of total education spending in 2018 and is expected to more than double to $342 billion by 2025, which is 4. 4% of digital spending. According to the World Economic Forum, over 1.2 billion children in 186 countries were affected by Corona-related school closures. As a result, there is increased demand and use of online learning software, language applications, virtual tutoring and other digital learning tools. In addition, adults and employees in companies are increasingly embracing the trend towards “lifelong learning” and are using the wide variety of online learning platforms that are flexible in terms of time and location in order to keep up with a rapidly changing world.

The complete “2020 Global Education Market Report” from the Mergers Alliance can be found here:
https://proventis.com/wp-content/uploads/2020/11/Global_Education_Market_Report.pdf

The Executive Summary of the Mergers Alliance’s “2020 Global Education Market Report” can be found here:
https://proventis.com/wp-content/uploads/2020/11/Executive_Summary.pdf

It is also attached in German as a PDF in the appendix.

About Proventis Partners

Proventis Partners is a partner-led M&A consultancy whose clients are mostly corporations, medium-sized family businesses and private equity funds. With 30 M&A advisors, Proventis Partners is one of the largest independent M&A advisors in the DACH region, with locations in Hamburg, Cologne, Munich and Zurich. The partners’ industry focus includes Industrials & Chemicals, Business Services, Consumer & Retail, IT & Media, Healthcare and Energy, in which the partners have realized over 300 successfully completed transactions with a cumulative transaction value of over 10 billion euros. Through exclusive membership of Mergers Alliance – the leading international partnership of M&A specialists who have completed over 1,160 transactions worldwide with a total value of over $55 billion in 30 countries since 2010 – Proventis Partners offers market coverage in the world’s leading economic centers . Through the 17 members of the Mergers Alliance, with over 200 M&A professionals in 38 offices, Proventis Partners has direct access to local decision-makers in Europe, North America, Latin America, Asia and Africa for mandates.