In late 2007, in the midst of a potential sale, Myers University was at risk of closing its doors forever. Its dire financial situation had placed hundreds of jobs and millions of dollars in government educational bonds at risk. The institution’s accreditation was also in jeopardy, with thousands of student credits hanging in the balance.
The court appointed Dottore Companies as Special Master to stabilize Myers University and prepare it for transition.
Within 24 hours of appointment, Dottore leadership conducted a financial review, identified critical success factors, and spoke with key influencers to determine a plan of action, which included:
While the diversity of two revenue streams - online and brick and mortar - was a strong factor in the valuation process, Dottore asked deeper questions of prospective buyers to uncover the non-profit University’s true, intrinsic value: Accreditation. It’s rare for a for-profit, distance-learning organization to have regional accreditation. For many for-profit suitors, this asset would be a strong addition to their growing portfolios.
The Dottore leadership team traveled to Chicago to meet with the accreditation board and ensure that the accreditation would be preserved during acquisition. Once confirmed, this essential asset was leveraged to maximize value for all interested parties.
Total recovery: $10 million, representing an 82% recovery of the organization’s outstanding debt.