The Independent Schools Sector is facing unprecedented financial challenges due to rising costs associated with National Insurance Contributions, pensions, and the removal of business rates relief. However, the most significant financial strain has of course come from the introduction of VAT on school fees, which has led to fee increases of up to 20% in some institutions.
As a result, schools are reassessing their financial models to ensure long-term sustainability. Many are exploring strategic partnerships, mergers, or alternative revenue streams to mitigate the impact of these rising costs. Some schools have already announced closures due to financial pressures, while others are adjusting their tuition structures to accommodate the new tax burden.
Given the close-knit nature of the Independent Schools Sector, discussions around partnerships and mergers often take place with a strong understanding of each institution’s operations and challenges. While full commercial due diligence may not always be necessary, governors have a duty to seek professional advice to ensure financial stability and compliance.
At HaysMac, we have been providing specialist services to the Independent Schools Sector for many years. We offer bespoke financial modelling and due diligence services tailored to the specific needs of schools. Whether institutions require full due diligence or targeted financial assessments to supplement their existing evaluations, we can provide expert guidance to support informed decision-making.
If your school is considering a merger, partnership, or financial restructuring, we would be happy to assist with a customised service to meet your needs. Please contact Jane Askew. Partner and Head of Education for further details.
