pointofreturn Thursday, 04/24/14 08:34:33 AM Re: None Post # of 53 Back to School Re: Loyalist & Consolidation The basic business model of Loyalist. It's a consolidation story, a roll-up play. AR and team will continue to go out and acquire, and consolidate schools, and when required, re-brand. Loyalist acquired WTC & PPC for very reasonable prices - 0.2x and 0.6x respectively, revenue multiples. They did not just give "some small time owner of a small school a bunch of cash and company stock." For the money, Loyalist acquired students, human resources (teachers, admin staff, etc.), educational literature (course materials), classroom and office space, and overseas agents. In this case, from a financial perspective it just didn't make sense to keep the schools intact, so they got re-branded during the consolidation process. Some schools, like KGIC and SEC are well-organized and well-recognized enough to stand on their own during consolidation and don't get re-branded. At the end of the day Loyalist needs to establish a name for itself in the industry. It just doesn't make sense from a business perspective to keep every school intact. In fact, in the case of WTC in particular the company saved almost $1 million by literally closing its doors and moving the students to other Loyalist campuses. Decisions like that are just apart of the consolidation process.