Higher Education Institutions

▪ Higher Education Institutions have faced mounting pressures on their financial health and long-term viability over the past decade:
▪ Students – The Gen-Z cohort, much smaller than its predecessors, is showing different preferences for Institutions, campus culture, and program delivery.
▪ Programs + Faculty – Poorly managed programs with declining enrollment, few graduates, and entrenched faculty.
▪ Financial – Covid-19 induced costs for safety and engagement, reduced ancillary income streams on top of shrinking tuition revenues and diminished endowments.
▪ Prior to the pandemic 25% of private colleges were running unsustainable deficits. Investment rating agencies have downgraded higher education debt due to rising risk, making borrowing more expensive.
▪ States have cut their funding of higher education by an average 13% over the past decade and the downward trend continues post-pandemic.
▪ Schools continue to operate in inefficient silos, both administratively and programmatically. Experts predict a failure rate above 25%.

The Opportunity

Despite the gloomy picture in higher education, with a fresh perspective there are strategies to survive, adapt and prosper in this new reality.
▪ Lessons from the business world suggest that stress in the Higher Education sector is a catalyst for consolidations and combinations – survivors act early and are willing to objectively self-analyze.
▪ A forward-thinking strategy can turn a failing school into a valuable asset for potential partners or acquirers.
▪ ELM2 Advisors seeks to assist Institutions in identifying their unique brand advantages, confronting their challenges, and addressing issues using business tools within a framework of alumni-driven boards and shared faculty governance.
▪ ELM2 Advisors will help both strong and troubled Institutions to position themselves for strategic combinations which unlock value, extract synergies, and create longevity, legacy and strength in the subsequent Institutions.

ELM2 Advisors leverages the experience of its principals to guide Institutions through strategic transactions, unlocking value and creating stability for all stakeholders.