What should I check before buying a private school?

A private school is a business built on trust between families and a small team. Parents choose it for a head of school, a teaching culture and a place their child feels known. A buyer takes on all of that along with the building and the books, and some of it can leave quickly. The checks below start with the questions that decide whether there is anything to buy at all.

Who owns the school

Some schools are owned by a company, some by a family and some by a non-profit board. Each is sold differently, so ask your lawyer whether a board is able to sell. Ask for the ownership documents early and ask your lawyer what can actually be bought, and what the school’s registration with education authorities means for a change of owner. Do not assume a normal sale is possible.

Families, grades and waiting lists

Ask for enrolment by grade for several years, and how many families re-enrol each spring. A full lower school with a thin upper school tells a different story from the reverse. Look at the waiting list and ask how it is kept. Talk to the admissions lead if the seller allows it, once the sale is confidential and in hand.

Money already collected

If families pay tuition or deposits before the year starts, ask how much has been collected for terms the school has not yet delivered, and who is responsible for that service after closing. Ask how the purchase agreement should deal with it, and let your accountant look at how it appears in the statements.

People and place

• Teacher contracts, and which teachers have said they will stay.
• The head of school: is it the owner, and who replaces them?
• Whether the campus is leased or owned, and for how long.
• Handbooks, policies and records the school must keep for students.

If a similar early-years business interests you, the daycare checklist covers a neighbouring field.