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As would be predicted by a landscape characterized by declining enrollment, negative demographics, excess capacity, and increasing fiscal pressures, all exacerbated by a pandemic of historic proportions, there has been much in higher education news regarding institutional mergers. From the consolidation efforts at PASSHE to the mergers of Willamette-Pacific Northwest College of Art, Sierra Nevada-University of Nevada at Reno, Delaware State University-Wesley College, Saint Joseph’s University-the University of the Sciences, Pine Manor-Boston College, and many others, it has been an active merger and acquisition scene in the industry. And the occasional pushback, of course.

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For most industries the COVID-19 global pandemic will have a profound differentiating impact, accelerating and stimulating some (e.g. online retail and streaming media), while depressing others (restaurants and cinemas). So it will be with the higher education industry.

What impacts higher ed will impact our economic recovery. Not only does the industry account for 2.5% of GDP, but it is a critical determinant of individual recovery. Looking to the Great Recession of 2008-09, over 95% of the jobs created post-crisis went to workers with at least some college education and those with a college degree rebounded from the recession sooner.

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The COVID-19 global pandemic has presented enormous medical, economic, and sociologic challenges for higher education leaders. To better understand what the pandemic might mean for mergers in higher education, we need to first recognize the macro-impacts of the crisis on the industry as a whole.

First, for many institutions the pandemic will result in decreased funding. For public institutions, support will be challenged as public and tax-payer dollars are diverted to other areas of the economy, including unemployment benefits, financial stimulus, and enhanced healthcare support. For private institutions, the declining financial ability of students and their families to pay higher tuition, and the decrease in external (both private and public) support will strain operations. Financial stressors may be worsened in the pandemic environment by the need to rapidly expand online offerings, absorb housing and other costs usually paid by students, and provide required health-related services.

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Recent data on the viability of colleges is sobering. A September 2015 Moody’s Investor Service report highlights a persistent inability among small colleges to increase revenue, which could lead to as many as 15 institutions closing for good by 2017, well up from the usual rate of five annually. The main threat for many small colleges, defined by Moody’s as private colleges with operating revenue below $100 million and public colleges below $200 million, is declining enrollment. In fact, 72 institutions have shut down since 2007, 86% with enrollments less than 1,000.


hush-naidoo-yo01Z-9HQAw-unsplash-1200x800.jpg

Recent data on the viability of colleges is sobering. A September 2015 Moody’s Investor Service report highlights a persistent inability among small colleges to increase revenue, which could lead to as many as 15 institutions closing for good by 2017, well up from the usual rate of five annually. The main threat for many small colleges, defined by Moody’s as private colleges with operating revenue below $100 million and public colleges below $200 million, is declining enrollment. In fact, 72 institutions have shut down since 2007, 86% with enrollments less than 1,000.


nathan-dumlao-xPHmmVKS8lM-unsplash.jpg

Recent data on the viability of colleges is sobering. A September 2015 Moody’s Investor Service report highlights a persistent inability among small colleges to increase revenue, which could lead to as many as 15 institutions closing for good by 2017, well up from the usual rate of five annually. The main threat for many small colleges, defined by Moody’s as private colleges with operating revenue below $100 million and public colleges below $200 million, is declining enrollment. In fact, 72 institutions have shut down since 2007, 86% with enrollments less than 1,000.


sharon-mccutcheon-eMP4sYPJ9x0-unsplash.jpg

Recent data on the viability of colleges is sobering. A September 2015 Moody’s Investor Service report highlights a persistent inability among small colleges to increase revenue, which could lead to as many as 15 institutions closing for good by 2017, well up from the usual rate of five annually. The main threat for many small colleges, defined by Moody’s as private colleges with operating revenue below $100 million and public colleges below $200 million, is declining enrollment. In fact, 72 institutions have shut down since 2007, 86% with enrollments less than 1,000.


priscilla-du-preez-ggeZ9oyI-PE-unsplash.jpg

Recent data on the viability of colleges is sobering. A September 2015 Moody’s Investor Service report highlights a persistent inability among small colleges to increase revenue, which could lead to as many as 15 institutions closing for good by 2017, well up from the usual rate of five annually. The main threat for many small colleges, defined by Moody’s as private colleges with operating revenue below $100 million and public colleges below $200 million, is declining enrollment. In fact, 72 institutions have shut down since 2007, 86% with enrollments less than 1,000.


thomas-de-luze-Z3ZcpwAY8n4-unsplash-1200x705.jpg

Recent data on the viability of colleges is sobering. A September 2015 Moody’s Investor Service report highlights a persistent inability among small colleges to increase revenue, which could lead to as many as 15 institutions closing for good by 2017, well up from the usual rate of five annually. The main threat for many small colleges, defined by Moody’s as private colleges with operating revenue below $100 million and public colleges below $200 million, is declining enrollment. In fact, 72 institutions have shut down since 2007, 86% with enrollments less than 1,000.