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Transaction Overview:
Company Overview:
The firm is a leading global technology education company, offering coding programs, both online and face-to-face courses on campuses.
Established almost a decade ago, the company is headquartered in Florida. Licensed by the Department of Education in Florida, the firm operates in multiple locations/campuses, and several sites across the World. Its operations efficiently scale across various geographies and tech stacks, with a proven track record of expanding into diverse cultures and regions. The business model that can be utilized to enter the untapped markets.
In the period ‘20-’23A, the company’s revenue grew by +84% CAGR (compounded annual growth rate), with $5.8m total revenue in 2023 and an EBITDA of $2m. In the next couple of years, the Company’s management expects the business to outpace the market with forecasted revenue of $7.5m in 2024E. The EBITDA margin in the observed period has improved to 35% (’23) with a high conversion of EBITDA to operating and free cash flow. The Company’s growth has been achieved through a bootstrapped approach, with minor investment contributions.
With an 81% employment rate for graduates within six months post-graduation, the Company is dedicated to teaching in-demand technologies, ensuring a transition from novice to proficient coder, emphasizing unlimited career support.
Team: The Company is run by its serial entrepreneur founders. The company has close to 100 employees/contractors (w2, w8, and w9).
The company operates with a headquarters structure. The HQ team includes the CEO, a VP, the head of culture and recruitment, a growth marketing manager, and a finance team. Additionally, the software engineering and SEO teams are also based at the headquarters. At each campus or location, a Country Manager leads the operations, supported by various full-time staff and support functions.
Services and Clients: The company specializes in providing Full-Stack Development, as well as Data Science and Machine Learning programs. These programs are accessible both online and in-person, catering to diverse learning preferences. What sets the Company apart from other coding boot camps is its commitment to lifelong 1:1 coding mentorship and maintaining a student-teacher ratio that is higher than average, ensuring a more personalized learning experience for each student.
The cost of enrollment varies, depending on the chosen program format and geographical location. Prices typically range from $4.5K to $11K. The course structure is designed to be 85% online and 15% in-person, offering a balanced approach to theory and practical application.
Reason For Sale: Having successfully bootstrapped the company, the owners now believe it has reached a pivotal stage. They are ready to pass on the leadership to senior corporate managers who possess the expertise and vision necessary to propel the company into its next phase of growth.
Training & Support: The owners are committed to ensuring a seamless transition for the prospective buyer. They are ready to assist with the transfer of confidential data and tools to the new owner. Additionally, one of the current owners is open to staying on board with the company, offering to work full-time for a period of up to 12 months following the acquisition. The other owner can stay for a shorter period of a few months.
Competition:
The Company is among the leading coding academies in the world. The market is very fragmented with over 100 companies present in the market. According to the Management, many of the boot camps will face critical challenges and will need to scale down, be acquired, or increase investments in various opportunities to stay relevant and continue the growth path.
Potential Growth:
Coding boot camps are intensive, accelerated learning programs focused on imparting digital skills in areas like Web Development, Data Science, and UX/UI Design. These programs, which typically last around 14 weeks, enable graduates to build portfolios, develop essential skills, and benefit from job placement support. The global coding bootcamp market is anticipated to grow at a CAGR of +17.2%, reaching $4.7B by 2028*.
In the U.S., the coding bootcamp sector has experienced significant growth, with the number of graduates tripling since 2013 and expected to reach 30,000 by 2023. Concurrently, tuition fees have risen from an average of $11,900 in 2015 to $16,500 in 2022, while program durations have extended from 10 to 12 weeks on average. Post-graduation, employment prospects remain strong, with 93% of graduates securing jobs within six months and earning an average salary of $61,000, with a median salary of $65,000**
* Source: Expat Market Research
**Source: SkyQuest
