Lessons to be learned from closing down a proprietary-owned school well

For the past few weeks I have been providing support to a school as it completes the process of closing its doors for the last time. Sadly, this was the inevitable consequence of a pandemic that has not been kind to any sector and has accelerated conversations and actions for many schools that were perhaps to be had in the medium to short term but never originally envisaged to be now.

The winding up of any educational establishment will always be an emotional task but COVID 19 is not interested in emotions so a clear, level-headed business approach must be taken to ensure the very best can be taken out of very difficult circumstances. With this in mind I am obviously keen to help others if they are facing similar situations with associated timing dilemmas.

The decision to close a school is one that is never taken lightly; schools are communities. Staff, students, parents, alumni: not simply stakeholders but rather individuals who have contributed to or benefited from a development institution which would have offered much to many. The work I have undertaken recently has been sensitive at times, acknowledging years of hard work and effort gone into making a school and the undeniable feelings that are attached to such a labour of love.

Unfortunately, some schools have become a “beast of burden” for their proprietors as they head towards an inevitable demise, but this is the time when the best strategy is a dose of realism, tactfulness and damage limitation in order to preserve anticipated retirement plans and hopes.

My advice would undoubtedly be to consider options as early as possible. This planning will inevitably affect the outcome positively. Failure to plan is fraught with pitfalls; conversations should be had before issues are forced. These could avoid the entire asset being wiped out as liability potentials are enormous. Teaching contracts are complicated, there is a tendency to over-value assets and failing to have them valued commercially will all contribute to the nightmare mix of sleepwalking into a disaster.

However, the outcome can be good and when done well, schools can close in a controlled operation with damage limited and assets preserved. For those schools facing closure in this academic year and those contemplating similar in the future, I would like to help you. Please do get in touch with me as I am sure I can help in avoiding the mistakes of others. Lessons learned from others misfortune or mismanagement in school closure should be shared to reduce the pain.

For a specific example, many schools are unaware that there is a network of potential buyers, keen to partake in this great education sector. By being honest and transparent, there is much value in considering this option, and I have been privileged to be in a position which straddles both the education and the commercial worlds, pooling networks for some extremely optimistic outcomes.

Indeed Covid 19 could be an opportunity to bring issues and situations to a head where schools facing trouble with unsustainable operating models are forced to face reality and hence plan for successful outcomes. It certainly came as something of a relief for the school I was working with recently to know that they were beaten by a pandemic rather than any other contributing factors.

Key lessons to be learned? As ever, plan as much as possible in advance, gather information, research, remain agile and face up to the scenario however unwelcome. We can learn from the rabbit – agile in thought and quick to act – who jumps on the back of the sheep when faced with rapidly rising flood waters. While the sheep may drown, the rabbit at least has given himself a greater chance of surviving when faced with disaster.

John Milne, Co-Founder and Managing Director