Corporate Training Market Sees Increase in M&A Activity
Capstone Partners released its January 2022 Corporate Training Sector Update, reporting that the Corporate Training sector witnessed a significant increase in spending, revenue, and merger and acquisition (M&A) activity amid the pandemic as organizations required additional training services to retain employees. Diminishing employee retention rates in 2021 have driven heightened demand for skills assessment services as employers required solutions to effectively evaluate worker performance and implement a successful training program.
M&A activity in 2021 set an annual record as buyers capitalized on organizations’ digital transformations by targeting providers that offer technical skills training for professionals and online learning solutions for dispersed workforces. Over the past three years, Corporate Training sector M&A valuations have outperformed the broader Education & Training industry and overall middle market. Notable deal activity includes the Capstone-advised sale of Rosh Review to Blueprint Education (November 2021) and recapitalization of Force Management by TZP Group (July 2021), among others.
Also included in this report:
- How organizations have utilized corporate training services to upskill workers and enhance employee retention
- A breakdown of average M&A purchase multiples in the middle market and Education & Training industry compared to the Corporate Training sector
- Rationale behind the surge in private equity platform investments in the sector and premium valuations paid for technology-enabled providers
- An analysis of public company performance and how venture capital firms have capitalized on the favorable valuation environment through exits via public listings
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