Alex is Managing Partner at Bolt, leading executive searches and board advisory work for education and training businesses.
I’m often asked about the state of play in the education M&A market. Who is going what? What is my next best move? What is (insert competitor here) doing?
It’s a been a busy time.
Large investors are taking notice and acting, tech is reshaping everything and there is genuine competition for transformational leaders.
I thought I’d draw together some analysis, whether you’re investing, hiring or navigating your career. Hopefully it gives you some useful insight and helps you to push on.
The training and education sector has maintained strong M&A momentum through January 2025, with activity concentrated in three key segments.
Strategic buyers have dominated the landscape, accounting for 42% of transactions as they seek to diversify service offerings and expand geographic reach. PE-backed strategic buyers follow closely at 38%, primarily targeting technology capabilities and operational efficiencies. Pure-play private equity investors have been more selective, representing 20% of deals and focusing on larger, established platforms.
The deal rationales tell an important story: strategic buyers are prioritising service expansion and geographic growth, while PE-backed strategics are heavily focused on technology acquisition and operational synergies. This pattern reflects the broader market maturation, where scale and technological differentiation have become key value drivers.
Looking at recent notable transactions, we've seen Bain Capital's significant £4.07 billion acquisition of PowerSchool, KKR's £3.6 billion purchase of Instructure, and General Atlantic's £800 million investment in Learning Technologies Group. These substantial deals highlight the strong appetite for established, technology-enabled education platforms with scalable business models.
The market has also witnessed multiple mid-market transactions that illuminate important trends. Apave Group's acquisition of PPL Training demonstrates growing interest in technical compliance education, while Accenture's £60 million purchase of Udacity signals the integration of specialised learning content into broader professional services offerings. These transactions reflect strategic buyers' efforts to enhance capabilities in high-growth niches.
Amongst investors we’ve spoken with consolidation is high on agenda as a method of increasing market share and mitigating the negative impact of changes to labour market policy.
Several key trends are driving investment decisions across the sector. Digital transformation continues to accelerate, with buyers particularly interested in AI-driven learning solutions that offer personalisation and scalability. Companies like Avallain and Teachermatic are being acquired for their AI capabilities that enhance educator effectiveness and learner engagement.
There's also growing demand for upskilling and reskilling platforms as organisations adapt to rapidly evolving workforce needs. The post-pandemic workforce transformation has created sustained demand for flexible, modular learning solutions that help employees develop new skills quickly. This explains the strong interest in companies offering specialised technical training and career transition services.
Compliance-driven training represents another growth area, with acquisitions targeting providers of regulated training in sectors like healthcare, energy, and workplace safety. HSI's acquisition of SKILLKO and Wilmington's purchase of Phoenix Health & Safety exemplify this trend, as regulatory complexities continue to drive demand for specialised compliance education.
Geographic expansion has become a strategic priority, with many UK and European companies seeking footholds in the US market and vice versa. Apave Group's acquisition of PPL Training illustrates this cross-border trend, as international buyers look to establish presence in new markets. The DACH region (Germany, Austria, Switzerland) has emerged as a particularly attractive expansion target for UK-based education providers, while North American buyers continue to view the fragmented European market as ripe for consolidation.
Market consolidation is particularly evident in fragmented subsectors like professional training and compliance education. Strategic buyers are assembling comprehensive portfolios that allow them to offer end-to-end solutions and reduce reliance on cyclical revenue streams. This roll-up strategy is especially pronounced in specialised areas like technical safety training and professional certification.
The UK apprenticeship landscape has emerged as a particularly dynamic segment within the broader Training & Education sector, experiencing significant M&A activity and structural transformation. Since the introduction of the Apprenticeship Levy in 2017 and subsequent reforms, the market has undergone substantial consolidation, with investment capital flowing to providers that demonstrate scalability and operational excellence.
Several notable transactions highlight this trend. In October 2024, the University of Sunderland's acquisition of Access Training signaled higher education institutions' growing interest in the apprenticeship space as they seek to diversify revenue streams and strengthen employer relationships. Similarly, Reed's purchase of Code Nation in May 2024 reflected the strategic value of digital skills training within apprenticeship portfolios, as employers increasingly prioritise technology capabilities.
The apprenticeship provider landscape has stratified into distinct tiers. At the premium end, specialised providers focusing on higher and degree apprenticeships in sectors like digital, financial services, and professional services command the strongest valuations, often achieving 10-12x EBITDA multiples. Mid-market providers with diversified programs across multiple sectors typically trade at 7-9x EBITDA, while generalist providers with heavy reliance on lower-level apprenticeships face multiple compression, trading at 4-6x EBITDA.
Key value drivers in the apprenticeship space include:
Quality metrics and regulatory standing. Providers with consistent "Outstanding" or "Good" Ofsted ratings command significant premiums, as regulatory performance directly impacts market access and growth potential. The timing of these inspections is also a factor, with more recently inspected providers carrying less regulatory risk and weighting on teams to support. Those with a history of compliance issues or quality concerns face substantial valuation discounts.
Employer relationship depth. Organisations with strategic, multi-programme relationships with blue-chip employers demonstrate greater revenue stability and growth potential than those reliant on transactional, single-program arrangements.
Completion rates and learner outcomes. As funding increasingly ties to outcome metrics, providers with strong completion rates and demonstrable learner progression have stronger commercial models and superior valuation prospects.
Technology infrastructure. The ability to deliver blended learning models efficiently while providing transparent tracking and reporting capabilities has become a key differentiator, particularly for employers managing large apprenticeship programs.
Specialieation vs. breadth. The market increasingly rewards focused strategies, with investors generally preferring providers that demonstrate genuine expertise in specific sectors rather than attempting to cover the entire apprenticeship framework.
From a talent perspective, leadership requirements in the apprenticeship space have evolved significantly. The most sought-after executives demonstrate regulatory fluency, commercial acumen, and technological vision—a demanding combination that reflects the sector's increasing complexity.
At Bolt Search, we've observed that the most successful apprenticeship leaders combine educational credibility with business sophistication. They understand both learning design principles and commercial imperatives, enabling them to develop programs that deliver both educational outcomes and financial results. This dual capability is particularly valuable in an environment where funding models continue to evolve and employer expectations increase.
For investment committees evaluating leadership talent in this space, several indicators of executive effectiveness stand out:
Regulatory navigation abilities. Leaders who can anticipate and adapt to policy changes while maintaining operational effectiveness create significant strategic advantages in a heavily regulated marketplace.
Employer engagement expertise. Executives who build strategic employer partnerships rather than transactional relationships unlock sustainable growth opportunities and reduce customer acquisition costs.
Data-driven decision-making. The most effective leaders leverage analytics to optimise learner journeys, resource allocation, and commercial performance, creating scalable operating models.
Innovation within constraints. Successful executives balance fidelity to regulatory requirements with creative approaches to programme design and delivery, differentiating their offerings in a competitive marketplace.
Some of the largest challenges we’ve experienced is in finding executives with sufficient domain expertise in apprenticeships paired with sufficient commercial acumen. Owing to the legacy of how apprenticeships used to be funded, broadly there is an underdeveloped commercial skillset amongst this specialised labour market. Identifying senior talent with a robust and creative commercial skillset is worth it’s weight in gold. Too often, skillsets are narrow, and overly focused on funded education routes and regulation. To survive and thrive organisations need to be led with regulatory rigour combined with strategic diversification in revenue streams and business models.
Looking ahead, we anticipate further consolidation within the UK apprenticeship market, with strategic buyers seeking to build comprehensive skill development platforms that extend beyond traditional apprenticeship boundaries. Organisations that successfully integrate apprenticeships with broader workforce development solutions will likely command premium valuations, as employers increasingly seek comprehensive talent development partners rather than discrete program providers.
For executives navigating this evolving landscape, the ability to align apprenticeship strategies with broader skills and talent agendas will be increasingly valuable. Those who can position apprenticeships within holistic workforce development frameworks—rather than as standalone programs—will find significant leadership opportunities as the market continues to mature and consolidate.
Valuation multiples have remained robust despite broader economic uncertainties, particularly for businesses demonstrating strong recurring revenue models and technological differentiation. EdTech platforms with proven AI capabilities are commanding premium valuations, often exceeding 4-5x revenue or 12-15x EBITDA for high-growth companies with strong margins.
The valuation spectrum varies significantly across subsectors. Pure SaaS learning platforms with high recurring revenue can achieve EBITDA multiples of 15-18x, while traditional classroom-based training providers might trade at 6-8x EBITDA. Companies that successfully blend digital delivery with high-value in-person experiences occupy a middle ground, typically achieving 9-12x EBITDA multiples.
Talking of apprenticeship providers, there is still a premium attached to an organisation with APAR registration. Even more so if the organisation has a clean bill of financial and regulatory health. These companies trade above pure play commercial training providers.
Companies demonstrating resilient growth, high customer retention, and scalable delivery models are particularly attractive to investors. Those with proprietary technology, unique content, or specialised delivery capabilities can command significant premiums in the current market. Businesses with net revenue retention above 110% and gross margins exceeding 70% are especially prized in the current environment.
Diversified customer bases also enhance valuation, as dependency on single clients or narrow market segments raises risk profiles. Similarly, companies with proven ability to expand internationally without compromising quality are seeing valuation benefits as geographic expansion becomes a key growth strategy.
Conversely, businesses heavily reliant on government funding or single-customer contracts face greater valuation scrutiny, as do those with limited digital transformation progress or subscale operations in crowded market segments. Traditional training providers without significant technology integration have experienced multiple compression, creating acquisition opportunities for digital-first players seeking content and customer relationships.
The ongoing wave of M&A activity is reshaping career trajectories and opportunities for senior executives across the sector. With consolidation creating larger, more complex organisations, there's increasing demand for leaders with integration experience and the ability to drive transformation at scale.
For senior talent navigating this landscape, several key considerations emerge:
Digital transformation expertise is non-negotiable. Regardless of role, executives must demonstrate technological fluency and the ability to drive digital-first strategies. The most sought-after leaders are those who can bridge traditional education delivery with technology-enabled learning experiences. This extends beyond technical knowledge to include experience implementing learning platforms, leveraging data analytics to improve outcomes, and developing blended learning models that maximise engagement.
Product innovation capabilities are at a premium. As the sector becomes more competitive, the ability to develop distinctive learning experiences and content has become increasingly valuable. Executives who can demonstrate a track record of successful product innovation—particularly in digital or blended environments—have significant career advantages.
Cross-border experience carries a premium. As organisations expand internationally, executives with experience operating across multiple markets—particularly between Europe and North America—are increasingly valuable. Understanding regulatory nuances, cultural differences in learning preferences, and regional customer expectations provides tangible leadership advantages in an increasingly global marketplace.
Value creation skills are essential in PE-backed environments. With 58% of transactions involving private equity (either as direct investors or backing strategic buyers), understanding how to operate within PE timelines and expectations has become a critical career skill. This includes experience managing KPIs that drive valuation, implementing operational improvements with rapid payback periods, and balancing short-term results with long-term strategic positioning.
Change management capabilities are increasingly valuable. Leaders who can successfully integrate acquisitions while maintaining business momentum are in high demand, particularly those with a track record of preserving culture and retaining key talent. As organisations absorb multiple acquisitions, the ability to create coherent operating models while respecting heritage and domain expertise has become a differentiating leadership quality.
When considering new opportunities, executives should carefully evaluate the investment horizon of potential employers. Organisations backed by PE firms with funds nearing the end of their lifecycle may present short runways before further transactions occur. Similarly, it's important to understand whether a strategic buyer views an acquisition as core to its long-term strategy or as a tactical enhancement that may eventually be divested.
Candidates should also assess the technology infrastructure of potential employers. Organisations with significant technical debt or fragmented systems often struggle with integration, creating challenging environments for incoming executives. Conversely, companies that have invested in scalable, modern technology platforms offer smoother paths to value creation.
For investment committees and boards evaluating leadership talent, the current market dynamics demand a specific set of competencies:
Strategic vision with execution discipline. Leaders must balance ambitious growth plans with pragmatic execution capabilities, particularly in environments where inorganic growth is a priority. The most effective executives demonstrate both creativity in market positioning and rigor in operational implementation.
Financial acumen and commercial creativity. As multiple expansion becomes more challenging, the ability to drive organic growth and identify revenue synergies becomes increasingly important. Leaders who can build sustainable commercial models and identify untapped market opportunities create significant value in the current environment.
Technology transformation experience. The most effective leaders demonstrate a track record of successfully implementing technology solutions that enhance learning outcomes while improving operational efficiency. This includes not only selecting appropriate platforms but also driving adoption and measuring impact to ensure return on technology investments.
Talent development capabilities. With skilled professionals in high demand across the sector, leaders who can attract, develop, and retain key talent create significant competitive advantage, particularly in knowledge-intensive segments. The ability to build high-performing teams and create engaging workplace cultures has become a key differentiator in a competitive talent market.
Cultural integration expertise. Given the high volume of M&A activity, executives who can successfully blend organisational cultures while maintaining focus on customer experience are particularly valuable. This includes preserving the best elements of acquired companies while establishing consistent operating principles across expanded organisations.
Global perspective with local sensitivity. As education and training businesses expand internationally, leaders must balance standardised approaches with localisation where appropriate. Those who can implement consistent quality standards while adapting to regional preferences create sustainable competitive advantage.
Investment committees should be wary of candidates who excel solely in growth environments without demonstrated experience navigating market challenges or integration complexities. Similarly, leaders without digital fluency or experience working in PE-backed environments may struggle to adapt to the sector's current dynamics.
The increasing complexity of the sector means that traditional educational leadership backgrounds are often insufficient for today's challenges. Boards should consider candidates from adjacent sectors who bring fresh perspectives and approaches that can differentiate offerings in a competitive marketplace.
At Bolt Search, our extensive experience in the training and education sector has provided unique insights into what drives successful executive appointments in this evolving landscape.
The most successful placements share several common characteristics. First, they bring relevant sector expertise while also introducing fresh perspectives from adjacent industries. This balance helps organisations innovate without sacrificing market understanding. We've found that candidates with experience in both education and commercial enterprises often excel at building sustainable business models that deliver both learning outcomes and financial results.
Second, effective leaders demonstrate both strategic vision and operational discipline—the ability to set ambitious growth targets while implementing rigorous processes to achieve them. This combination is particularly critical in PE-backed environments where value creation timelines are compressed. The most successful executives communicate compelling visions while establishing metrics and accountability systems that drive consistent performance.
Third, successful executives possess strong stakeholder management skills, enabling them to navigate the sometimes competing priorities of investors, employees, customers, and regulatory bodies. This becomes especially important in organisations serving multiple market segments or operating across different regulatory environments.
We've observed that organisations often underestimate the importance of cultural alignment during rapid growth phases. The most successful appointments occur when there's careful consideration of how a leader's working style and values align with the organisation's culture—whether maintaining an existing culture or deliberately transforming it. Cultural misalignment is a primary reason for executive transition failures, particularly following acquisitions.
Our experience also highlights the value of diversity in leadership teams. Organisations with diverse executive teams consistently demonstrate greater innovation capacity and market responsiveness, creating significant competitive advantages in rapidly evolving markets. Investment committees that prioritise varied perspectives and backgrounds when building leadership teams see stronger long-term performance.
As we move through 2025, we anticipate continued robust M&A activity in the sector, with particular focus on technology-enabled learning solutions and specialised training providers serving high-growth industries. Valuation multiples for premium assets are likely to remain strong, though buyers will increasingly scrutinise growth sustainability and technological differentiation.
Several emerging trends will shape market dynamics in the coming year:
AI-enhanced learning will accelerate. As generative AI matures, its integration into learning platforms will create new opportunities for personalisation and engagement. Companies that successfully harness AI capabilities while maintaining learning efficacy will command premium valuations. There are already companies actively using AI and metacognition to power real time adaptive learning.
ESG-focused training will gain prominence. With regulatory requirements and corporate commitments driving demand for sustainability education, providers of ESG-related training and compliance solutions are likely to see increased acquisition interest.
Workforce development partnerships will expand. The gap between traditional education and employer needs continues to drive demand for alternative credentialing and skills-based training. Organisations that successfully bridge education and employment through innovative partnerships will find strong market support.This will extend across the spectrum of the human capital sector.
Cross-border integration will intensify. As multinational corporations seek consistent learning experiences across global operations, education providers with seamless multi-region capabilities will have competitive advantages in enterprise markets.
For senior executives, the evolving landscape presents both challenges and opportunities. Those who can demonstrate the ability to drive digital transformation, integrate acquisitions successfully, and deliver measurable learning outcomes will be most in demand. Meanwhile, organisations that approach talent acquisition strategically—focusing on mission critical leadership capabilities that align with their investment thesis—will be best positioned to succeed in this dynamic market.
At Bolt Search, we remain committed to connecting forward-thinking organisations with transformational leadership talent capable of navigating this complex and rapidly evolving sector landscape. By leveraging our deep understanding of both the market dynamics and leadership requirements, we help clients build executive teams that drive sustainable competitive advantage in an increasingly consolidating industry.
