How a Private School Sold at 15x EBITDA with Enrollment Contracts

In this episode, Lucas and Luna dissect the sale of a mid-sized private school in the Pacific Northwest that achieved a 15x EBITDA multiple—well above the typical 6-8x for education businesses. The key was replacing month-to-month tuition billing with multi-year enrollment contracts, which transformed variable revenue into predictable recurring income. They walk through how the school overhauled its enrollment process, added auto-renewal clauses, and shifted from seasonal billing to annual upfront payments. By creating this contract book, the school reduced churn from 22% to 6% over three years, making it a prime acquisition target for a regional education group. Lucas explains the math on how even a modest contract length extension can dramatically increase valuation, and Luna highlights a smaller boutique school that failed to sell because it had no enrollment commitments at all. They also touch on the broader trend of private equity rolling up education assets and why stable enrollment counts matter more than tuition increases. A concrete case study for any owner wondering how to make their school—or any subscription-like business—more salable. #PrivateSchoolSale #EnrollmentContracts #EducationAcquisition #BusinessExit #EBITDAMultiple #RecurringRevenue #TuitionRevenue #SchoolValuation #BusinessBrokers #PrivateEquityEducation #PacificNorthwest #ChurnReduction #AutoRenewal #SellSideAdvice #BusinessPodcast #FexingoBusiness #BuyerSellerPodcast #EducationPE Keep every episode free: buymeacoffee.com/fexingo