Case:
Myers
University
Cleveland,
Ohio
Higher
Education
2008
Challenge
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.
Methodology
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:
The Breakthrough
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.
The Results
Total recovery: $10 million, representing an 82% recovery of the organization’s outstanding debt.