文|车锦文
Early childhood assets in the capital market have never been as popular as they are now. The excellent kindergartens in the first- and second-tier cities have their owners discussed the acquisition with real estate developers, listed companies and funds. Some kindergartens may be due diligence several times within a year. In the acquisition of preschool education assets, there are many players and they are very lively.
However, behind the excitement, what kind of challenges does kindergarten and capital face?
"Your company's net profit has not had a lot of kindergarten balance, or I will accept you."
As the kindergarten director of the southeast coastal city, Xiaofei’s kindergarten was dutifully investigated three times in more than a year. In the name of interest in kindergartens, the number of institutions that come to visit kindergartens has to be doubled.
In this city, Xiaofei has three kindergartens, one of which is rated as excellent by the city. In 2000, she partnered with a friend to start her first kindergarten in the community. After one year, the number of students in the park doubled. Next, the scale of the kindergarten office is getting bigger and bigger.
When an investor and her first talk about “acquisition†and “due diligenceâ€, Xiao Fei’s feelings were somewhat “unexplainedâ€.
"One is because I don't know why I want to buy our kindergarten. Second, I have never touched capital before, and I have some fear of capital." Xiao Fei recalled his first reaction when he was in contact with "capital."
And this reaction can represent most of the directors, especially because of the fear of the unknown of capital. However, after frequent contact with capital, the headmasters’ awareness of capital is also increasing.
At the event where the author participated, a director of a second-tier city in Shandong Province told her about her experience with capital: One day, a new three-board company found the director. "When people live and die at the door of our kindergarten, they don't want to go, talk about swearing, talk about sputum. Later, they can't stand the entanglement. We ask him, how much net profit do you have in a year? He said more than 3 million yuan."
When the head of the garden turned around and walked away, he said, "This is not the balance of our kindergarten. I will accept you."
After listening to this, the new three board company went away. But there are more and more people looking for a door.
It is also the experience of the director: In the course of due diligence, an investor sent people to take photos of all the kindergartens' systems and courses and go back to study. But after leaving, I have never contacted the director.
The above scenario is a microcosm of the capital's pursuit of kindergarten assets in more than a year.
This is the second time that capital has slammed the preschool education industry.
“When I founded the first kindergarten in 1998, it was in Fangzhuang. At that time, the kindergarten was still very small. One day, two people in suits and knights went to the kindergarten to say if they could investigate.†Pan Zhifeng, founder of Qingmiao Hui recalled .
After inquiry, I learned that the two suits were a consulting company and were commissioned by foreign funds to investigate the early childhood education industry in China.
Why did foreign foundations investigate the domestic early childhood education industry at that time? This is related to a 1997 regulation.
In 1997, the State Council promulgated the "Regulations on Schools for Social Forces." This regulation clarifies the legitimacy of the state to encourage social forces to run schools.
Then, from 1997 to 2007, it became the “golden decade†for the development of China's early childhood education industry. In the past ten years, according to statistics from the Ministry of Education, the number of private kindergartens has increased from 13% to 60%.
From 1997 to 2007, the number of Chinese kindergartens and their proportion:
Capital is very keen to smell, with the release of the regulations, the development of private education will usher in an explosion. Based on this, the domestic consulting company was commissioned in advance to investigate the preschool education industry.
This is the first time that capital has been at the door of an early childhood education.
Compared with the shackles of capital in the early childhood education industry more than a decade ago, the second intervention of capital has become more violent and deeper in recent years.
The same is the acquisition of kindergartens, different types of investors, what is the purpose?
Speaking of these two years, the attitude of investors on early childhood assets can be described as "grabbing". In the past two years, the investors have locked in the first-tier cities. Therefore, kindergartens in the first-tier cities of North, Shanghai, Guangzhou and Shenzhen have been searched by “carpetâ€.
A fund investor who did not want to be a real name described a detail to Doknet: In the past two years, they talked with the private owners of Shenzhen Kindergarten, they did not know what PE multiples. Now go talk to them, you will first let you report how many times PE, this multiple has reached their psychological expectations, it is possible to continue to talk. Some good kindergartens may have undergone several due diligence investigations, and the private owners of asset holders have been very combative.
The holders of the kindergarten assets have been in contact with the capital for two years, and the kindergartens in the first-tier cities are still marked, but the psychological price has already risen.
Dokyu.com also learned that some listed companies have a “clear price†form. What are the PE multiples for different cities and kindergartens of different sizes? If you have a kindergarten in your hand and report it to the scale, you will send the PE multiple to you.
Among these capitals, the first thing that focuses on the assets of preschool education is the listed company.
The big background at that time was that many of the listed companies' main business developments were slow, and even went backwards, and there was no room for future growth. Therefore, listed companies need to find new concepts or businesses to guarantee their market value.
The above investors believe that before this, the education industry was not very concerned, and the number of companies in the domestic listed companies with education as the main industry was relatively small. Because the education industry has a low rate of return, unlike the TMT, medical and other industries, it has a high rate of return, and the education and training industry is characterized by advance receipts, not revenue recognition.
However, at present, whether it is TMT, medical or other industries, has already missed the best vent. The education industry is less affected by macroeconomic fluctuations and has sufficient cash flow. These characteristics complement the listed companies that are dominated by traditional industries.
Another point is that investing in education and investing in real estate reflects the corporate sentiment at a level.
Under the combined effect of the above factors, the eyes of listed companies stay on educational assets.
The most striking thing about the acquisition of preschool education assets by listed companies is that Vitron has acquired Hung Hom Education for 520 million yuan and acquired the golden cradle for 857 million yuan. Both transactions have attracted great attention in both the capital market and the education industry.
However, these listed companies are not buying kindergartens.
Although in November 2016, Article 19 of the Third Draft of the People's Promotion Law stipulates that the organizers of private schools may choose to set up non-profit or for-profit private schools, but they may not establish for-profit private schools that implement compulsory education. The amendment will come into force on September 1, 2017.
This means that before September 1, 2017, kindergartens are also non-profit. Non-profit assets cannot be placed in listed companies.
Take the two transactions of Weichuang as an example.
In the announcement issued by Weichuang Co., Ltd. on February 4, 2015, Hung Hom Education is a well-known kindergarten integrated system solution provider in China. Its main business is to provide kindergartens with teaching materials in all aspects of the kindergarten. , kindergarten enrollment services, kindergarten teacher recruitment and training, kindergarten management and other solutions, future business can be extended to kindergarten infrastructure equipment procurement.
As of December 31, 2014, Hung Hom Education has a total of 6 direct-operated kindergartens, one of which is under construction and 1,192 franchise parks covering all provinces in China, making it the largest kindergarten chain franchise brand in China.
On the basis of having a large amount of kindergarten resources, the main income of Hung Hom Education comes from the secondary value-added services for joining kindergartens. As of December 31, 2014, the sales revenue of Hung Hom Education was 83.925 million yuan, accounting for 77.27%. The income from joining services was 2,469.31 million yuan, accounting for 22.73%, and other income was 0.05 million yuan, accounting for 0.00%.
On September 8, 2015, Weichuang Co., Ltd. announced the golden cradle of another preschool institution to be acquired. The main business models include the following categories:
(1) Brand joining. The main income of brand franchise includes brand franchise fee and teaching material fee.
(2) Managed franchise (brand franchise + entrusted management). The main income of the custody-based franchise includes brand usage fees, enrollment management fees, teaching materials, and publicity fees.
(3) O2O community education. The O2O community education mainly includes the Golden Cradle Community Early Learning Business (Colorful Treasure House) and the China Children's Growth Network.
(4) Sales of early childhood education products, including fast reading courses, representation training courses, and 3D printing innovation courses.
The joining and hosting of the Golden Cradle is essentially the export of knowledge, management and branding.
In the announcement released on September 8, 2015, the Golden Cradle had more than 150 brands to join the kindergarten, 17 of which were hosted by the affiliated park; 2 brands joined the primary school, 2 hosted affiliated primary schools; and 1 early education institution 3 brands joined the early education institutions.
Therefore, Weichuang acquired two companies that export products and services.
The choice to acquire a preschool education company to achieve indirect control of kindergartens is also an operation method for many listed companies to acquire preschool education assets.
The second type of investor: industrial fund
In addition to listed companies, there are various industrial funds to acquire kindergartens. It is divided into financial investors and strategic investors. As a financial investor, a more common situation is to buy a kindergarten at a lower price, and then sell it to the market at a higher price after standard management.
The other category is a strategic investor based on industrial capital. After buying kindergartens, strategic investors will manage the company, expand the scale of operations, and develop the upstream and downstream businesses of the kindergarten, in order to obtain more business income, improve the comprehensive profit rate, and at the same time coordinate capital operation to maximize the benefits of integration of industry and finance.
The third type of acquirer is a preschool institution. Pan Xianfeng, the founder of Qingmiao Hui, has done statistics. At present, the largest direct chain kindergartens in the top ten in China have low brand concentration.
In Pan Xianfeng's view, most kindergartens that purchase kindergartens have a large number of direct kindergartens and strong kindergarten management and operation capabilities. On the one hand, the number of direct kindergartens is rapidly expanded through mergers and acquisitions; on the other hand, through the standardized management of kindergartens. And business improvement, you can get a better premium space when selling.
This is the three types of investors currently acquiring kindergartens.
Behind the excitement: Kindergarten and capital have their own challenges
Whether it is a listed company, a fund, or a preschool education industry, chasing early childhood assets can be described as lively, but they share common concerns.
Details on the non-profit-to-profit transition of kindergartens. Article 19 of the third draft of the People's Promotion Law stipulates that the organizers of private schools may choose to set up non-profit or for-profit private schools. For the time being, the implementation rules for each region have not yet been announced. This means that the policies in each region will be different. Kindergarten asset holders are unclear about future profit expectations.
About the Pratt & Whitney Park policy. This is another issue that kindergarten practitioners and investors are concerned about.
In 2010, the "State Council's Several Opinions on Current Development of Preschool Education" proposed the "conceptual policy" of "inclusive private people's parks." According to Yangguang News, on February 26, 2014, the Ministry of Education introduced the second three-year pre-school education action plan in Beijing. The focus of the plan is to strongly recommend the construction of inclusive kindergartens.
On December 1, 2015, the Ministry of Education held the second pre-school education three-year action plan promotion meeting in Beijing. Liu Limin , deputy director of the Ministry of Education, said at the meeting: All the kindergartens in the community will be turned into public parks or inclusive public parks. At least one public center kindergarten in each rural township, a small village independent park, a small village joint park or a branch garden, and a public service network for rural preschool education based on public parks.
Under the general direction set by the Ministry of Education, governments across the country have issued policies to promote the construction of local inclusive kindergartens. Many areas have proposed a specific proportion of local public parks and Pratt & Whitney parks.
For example, in November 2016, Shenyang issued a document saying: Before the end of December 2018, the proportion of children in the kindergartens in the general kindergartens accounted for more than 75% of the total number of children in the park. Shenyang researched and formulated the financial support policies for the existing public kindergartens to augment the degree, recycle the community supporting kindergartens, rent suitable venues to hold public kindergartens, and purchase private degrees.
On December 2, 2016, Wuxi City stated that 30 kindergartens will be newly built, rebuilt and expanded every year for the next five years. By 2018, in principle, it is ensured that each school-age child with a need can provide a public kindergarten or inclusive private kindergarten. .
Changsha City said on March 17 , 2017 that the specific target for 2017 is that public parks and inclusive private parks account for 72% of the total number of kindergartens in the city, and that 2020 public kindergartens and inclusive private kindergartens will account for 80% of the total number of kindergartens. %. The Changsha Municipal Education Bureau will also increase the recycling of supporting kindergartens in the community, guide the private parks to provide inclusive services, and continuously expand the degree.
The above policies have been adjusted due to different actual conditions in various places, but the constant is that the number of Pratt & Whitney Parks will increase. In addition to the new construction, the way to increase the number of Pratt & Whitney Parks can only be chosen to recycle private parks.
For investors, kindergartens are spread all over the country, and there may be some areas where kindergartens are at risk of being recycled by the government as Pratt & Whitney Park.
With the large increase in public parks and Pratt & Whitney Parks, private small and medium-sized kindergartens are facing tremendous competitive pressure.
Because Pratt & Whitney Park enjoys preferential treatment in terms of school land, tax incentives, fee reduction, teacher training, job title evaluation, pre-evaluation, and child support.
It is for these reasons that many single kindergartens have chosen to sell in the near future.
The choice to sell kindergartens faces additional problems.
The Shandong head of the school mentioned above is an example. Her original plan was to have a rest and retirement life after the kindergarten was sold. But the kindergarten has not sold yet. When asked about the reasons, in addition to the price has not been discussed, Xiao Fei's biggest concern is to find a good home for hundreds of students who have followed their own teachers for more than a decade.
In the process of contact with capital, the idea has changed: "After several rounds of contact with capital, I now think that since capital does not understand kindergarten, does not manage, does not understand the curriculum, then can I cooperate with capital to help capital? Acquisition of kindergarten."
Listed companies and industrial funds are faced with the acquisition of dozens of different brands, different regions, different concepts of kindergartens, how to integrate this big problem.
In this capital feast, policy troubles have not been completely eliminated, and there are many challenges in the specific business and practical aspects. How will the involvement of capital affect the development of the early childhood education industry? (多知网车锦文)
We are one of the biggest manufacturer of aerosol packaging, formulator and filling in China, our company is ISO9001, ISO14001 and ISO45001 accredited. The facility employs 1,200 skilled manpower and covers a land of 150,000 square meters of state of the art manufacturing and warehousing spaceOur company is a professional manufacture insecticide aerosol spray, welcome Bed Bug Treatment,Mosquito Control purchasers from worldwide to visit our site.Insecticides are mainly used for the control of agricultural pests and urban health pests.They have a long history of use, a large amount and a wide variety.
Insecticide aerosol spray, mosquito killer spray,insect killer spray
Linyi Yiqun Packaging Products Co., Ltd , https://www.lypackingbag.com