🧠 Valuation Insight: Education Revenue Isn’t Always in Session

~ Certified Business Appraiser

📚 Tutoring centers and test prep firms often report high margins—but be careful.

Why?

  • Revenue is seasonal (SAT/ACT, summer slump, back-to-school spikes)
  • Owner is often the lead instructor
  • Group classes subsidize unprofitable 1:1 sessions
  • Addbacks may ignore contractor replacement cost

📌 Rule of thumb: Education businesses without a documented academic calendar or staffing plan don’t support valuation.

✅ Normalize revenue by season and apply fair market wages to teaching roles.