Post-Pandemic Recovery and Earlier Demand Drive Growth in Study Abroad and Experiential Learning
The US study abroad market fell more than 90% in 2020 and has come back quickly: 79% of institutions offered in-person programs by summer 2023, and 83% expected participation to increase in the 2023 academic year. Europe now hosts two thirds of US students abroad, and the share of students who first became interested during high school jumped from 16.4% to 45% in a single year.
Study abroad and experiential learning, or SAEL, provides cultural immersion and personal development for students of all ages. The market spans international study abroad programs and experiential learning opportunities that cater to career-focused skill development. Traditionally centered on college students, the industry has begun extending to high school students as demand for distinctive experiences rises, and the global market is projected to grow at an 11.1% compound annual rate through 2025.
The pandemic hit the sector harder than almost any corner of education, with US study abroad volume falling more than 90% in 2020. The recovery has been fast and it is arriving on two fronts at once. Institutional supply has rebuilt to the point that most colleges again run in-person programs, and demand is now forming earlier, with high school students entering a market that used to begin in college. Because universities typically outsource their study abroad operations, most of the industry’s key players are third-party providers, which is where the deal activity sits.
How the Post-Pandemic Rebound, Europe’s Widening Lead, and High School Demand Are Reshaping Study Abroad M&A
Programs have recovered and are growing again. Study abroad has regained the ground lost to COVID-19 and is now growing rapidly. According to the Institute of International Education, 96% of US colleges in 2023 reported anticipating increased or stable student participation in study abroad from the year before, which points to a larger addressable market.
Supply has rebuilt across institutions. The Institute of International Education found that 98% of surveyed institutions offered in-person or hybrid study abroad opportunities during the summer 2023 semester, up from 89% in summer 2022. In-person programs alone reached 79% of institutions by summer 2023, up from 15% in summer 2021.
Europe extended its lead. COVID-19 intensified the popularity of European destinations, which moved from 54% to 66% of US students abroad post-pandemic. The shift reflects students’ increased comfort in European countries, given their higher vaccination rates and healthcare systems, which offered a sense of security during emergencies.
High school interest is growing quickly. According to Terra Dotta, the share of surveyed students who first became interested in studying abroad during high school grew from 16.4% to 45% between 2022 and 2023. Earlier interest expands the addressable market and is reinforced by federal scholarship programs including FLEX Abroad, YES Abroad, and CBYX.
SAEL Industry at a Glance
As the college admissions process becomes more competitive, students seek new ways to showcase distinct perspectives and experiences, which has pulled interest in SAEL offerings earlier. The industry currently divides into high school and college experiences, with a growing focus on the former.
The COVID-19 pandemic had a severe impact on the US study abroad market in 2020, with a decline of over 90%. In 2023, programs are making a strong comeback. The Institute of International Education reports that for the 2022-2023 academic year, 48% of institutions said study abroad participation had rebounded to pre-pandemic levels. Europe remains the most sought-after destination, attracting more than 60% of students, with business students constituting the largest share of participants.
High Growth Potential Post-Pandemic
The SAEL market is positioned for significant growth, especially over the next two years. As students reschedule postponed experiences and newly enrolled students seek first-time opportunities, the industry is expected to surge. Once the backlog of canceled student demand is addressed, the sector is anticipated to resume its pre-pandemic growth rate and follow similar patterns. The global market is projected to grow at a compound annual rate of 11.1% until 2025, according to HolonIQ.
Several factors contribute to that growth: the increasing popularity of study abroad among college students, growing demand from non-college students looking to differentiate themselves in the admissions process, and the relaxation of global health restrictions. Supply is expanding alongside demand, with universities offering study abroad programs reaching 64% for academic year 2023. Combined with the 96% of institutions expecting increases or stable participation, the market is positioned for high growth as demand from both college and high school students increases.
Increasing Preference to Study in Europe
Study abroad experiences have proven to enhance students’ understanding of the world, foster a deeper appreciation for different cultures, and improve career prospects, according to the IIE. Even with the range of country and continent options available, Europe remains the most favored destination. In 2021, the IIE reported that 66% of US students studying abroad selected Europe, an increase of roughly 12 percentage points since 2017. More than 75% of US educational institutions now offer programs in European destinations, and 50% of the top 20 destinations for 2023 are European countries.
European countries have consistently been the top choice, hosting 54.4%, 54.9%, and 55.7% of students in 2017, 2018, and 2019 respectively. The sudden surge to 66% in 2021 can be attributed to the pandemic. Europe’s higher vaccination rates compared with developing regions, averaging 83% among the top four European study abroad destinations against 78% across Asia and 34% for Africa, positioned it as the safer option from a health risk perspective. Current US relations with China also limit student and parent interest in studying there in the near term. Combined with the inherent tourist appeal, Europe has strengthened its lead.
High School Market Growth
The non-college market has been one of the faster growing segments of the sector, and a telling indicator is when students first become interested in studying abroad. According to a study conducted by Terra Dotta, in 2022 16.4% of students surveyed said they first became interested during high school. In 2023, that number jumped to 45%. The trend shows awareness of study abroad opportunities growing among younger students and expanding the addressable market.
Federal support reinforces it. The US government has taken a vested interest in helping high school students study abroad through scholarships including FLEX Abroad, YES Abroad, and CBYX, increasing accessibility for eligible students. As both accessibility and interest increase among high school students, this portion of the addressable market should grow rapidly.
Navagant Case Study
A representative transaction from Navagant’s study abroad and experiential learning practice, showing our experience with cross-border processes, multi-currency businesses, and affiliated non-profit entities.
Background
Headquartered in Brussels, Belgium with subsidiaries in Italy, France, Spain and Australia, World Education Program (WEP) is one of the world’s largest outbound study abroad organizations. WEP offers numerous high school programs and other educational and intercultural experiences such as volunteering, language courses, higher education, family immersion, and internships, and handles over 10,000 students annually. The introduction to WEP came through another former client, Educatius, one of WEP’s larger competitors, headquartered in Sweden.
Process Highlights
Discussions with e-Capital, a Belgian family office, began in November 2020 and came to an agreement in April 2021. The key sticking points in the LOI were valuing the business off 2019 adjusted EBITDA, given the 2020 and 2021 COVID downturn, then structuring an earn-out upside based on 2022 and 2023 performance, alongside a complex working capital discussion driven by the sharp seasonal swings of the summer months and students pre-paying a year in advance.
Successful Outcome
WEP was acquired by E-Capital Equity Management in January 2022, giving one of the largest outbound study abroad organizations in Europe a long-term partner through the recovery. It was one of the few healthy transactions completed in the sector during the pandemic.
Notable Transactions
August 2020: Infinedi Partners, a private equity firm focused on investing in entrepreneurs, announced the acquisition of Cultural Experiences Abroad (CEA), the fourth largest provider of study abroad educational programs for US university students in foreign countries. CEA was one of Infinedi’s first investments in the study abroad and experiential learning industry, giving the firm a well-known brand as an entry point into the market. The fit also matched Infinedi’s focus on backing entrepreneurs, since founder Brian Boubek also served as CEO. Boubek framed the partnership as giving CEA the resources to support its US university partners through the disruption in international education, add health and safety capabilities, and hold its position as a leader until the market rebounded.
August 2021: To complement CEA, Infinedi Partners acquired CAPA: The Global Education Network, combining the two into CAPA CEA, an entity reaching over 500 universities. The platform acquisition allowed Infinedi to keep investing in study abroad and opened the door to synergies between two industry leaders. Boubek pointed to the combined portfolio of academic courses giving university partners and students greater programmatic flexibility, while CAPA President and CEO John Christian described the partnership as pairing complementary strengths and adding resources to accelerate innovation while navigating the near-term challenges of the pandemic.
| Market Capitalization ($) | LTM | EV / LTM (x) | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Company | Price ($) | % of 52-Wk High | Market Cap | EV | Revenue | Gross Margin % | EBITDA | EBITDA Margin % | 1-Yr Rev Growth | Revenue | EBITDA |
| Adtalem Global Education | 41.81 | 88.5% | 1,748 | 2,606 | 1,451 | 55% | 343 | 19% | 5% | 1.8x | 7.6x |
| American Public Education | 5.34 | 37.6% | 95 | 290 | 599 | 51% | 41 | -7% | 8% | 0.5x | 7.1x |
| Graham Holdings | 581.97 | 85.4% | 2,705 | 3,669 | 4,213 | 31% | 708 | 16% | 20% | 0.9x | 5.2x |
| Pearson | 10.42 | 86.7% | 7,454 | 7,465 | 4,729 | 48% | 1,398 | 26% | 9% | 1.6x | 5.3x |
| Strategic Education | 72.51 | 73.8% | 1,787 | 2,022 | 1,077 | 42% | 154 | 11% | 0% | 1.9x | 13.1x |
| Stride | 40.06 | 84.6% | 1,767 | 2,261 | 1,837 | 35% | 312 | 16% | 9% | 1.2x | 7.3x |
Source: PitchBook. US$ in millions.
Prices as of August 17, 2023.
EV = enterprise value. LTM = last twelve months.
| EV / Rev | EV / EBITDA | |
|---|---|---|
| Mean | 1.3x | 7.2x |
| Median | 1.3x | 6.5x |
| Harmonic Mean | 1.0x | 6.5x |
Buyer Universe
Our team has long-standing relationships with many of these firms through recent transactions we have represented in the study abroad and experiential learning industry. We have also tracked buyers that have been highly acquisitive in the international education consulting and educational travel sector, particularly those that have completed notable M&A transactions. Our sector expertise and network provide us with unique insights into this buyer universe and into the sector and growth drivers for the companies within it.
Select Transactions
The table below summarizes study abroad and experiential learning transactions from 2018 through August 2023, spanning outbound program providers, international student recruitment and enrollment platforms, educational travel operators, and experiential learning software.
| Date | Target | Acquirer | Target Business Description | EV ($mm) | EV / Revenue | EV / EBITDA |
|---|---|---|---|---|---|---|
| 6/15/2023 | Trilha Educação | CI Intercambio | Student educational and experiential learning travel provider based in Brazil offering various domain itineraries. | – | – | – |
| 4/27/2023 | STB Consultants | BeFly | Education consulting company focused on international services. | – | – | – |
| 4/26/2023 | Verb | Apax Partners | Online leadership development platform designed to deliver whole-person development via experiential learning. | – | – | – |
| 4/12/2023 | Student Opportunity Center | PeopleGrove | Online community platform designed to centralize, manage and assess students’ experiential learning. | – | – | – |
| 9/21/2022 | BMI GlobalEd | Times Higher Education | Operator of international student recruitment events which connect people from across the recruitment spectrum. | – | – | – |
| 9/20/2022 | Intake Education | IDP | Global education advisory service that connects students with overseas education opportunities in English-speaking countries. | 55.8 | – | – |
| 6/22/2022 | Halsbury Travel | Literacy Capital | Travel agency that organizes trips for UK schools, with an offering that spans education, languages, and sports. | – | – | – |
| 6/17/2022 | SI-UK | Yana Investment Partners | Student enrollment manager facilitating international student enrollment in UK universities. | – | – | – |
| 6/15/2022 | SONOR | Keystone Education Group | Consulting service to help students navigate applications, recruitment, and find their first-choice international program. | – | – | – |
| 3/22/2022 | TrainHub (Panda Portal) | ApplyBoard | Education platform designed for the international education industry training ecosystem. | – | – | – |
| 1/14/2022 | World Education Program | E-Capital Equity Management | Provider of study away programs, language courses, jobs, internships, and volunteering abroad. | CF | CF | CF |
| 12/6/2021 | Orbis Communications | Symplicity | B2B provider of data-driven experiential learning solutions and strategies that empower post-graduate individuals. | – | – | – |
| 11/29/2021 | Global Study Partners | upGrad | EdTech marketplace for international student enrollment with a network of 600+ institutions. | 16.5 | – | – |
| 10/29/2021 | Insight Australia Travel | Australian Geographic | Travel company intended for group tours, with special student and educational travel. | – | – | – |
| 9/2/2021 | Haka Tourism Group | Drifter Hospitality | Provider of educational tours across a range of curriculum areas and sports codes for students all over the world. | – | – | – |
| 8/7/2021 | CAPA International Education LP | Infinedi Partners, LP | Provider of study abroad and intern abroad programs. Partners with US universities to provide experiences globally. | – | – | – |
| 9/2/2020 | STS Education | Fastighets Balder | Educational travel company specializing in language studies and exchanges for university and high school students. | – | – | – |
| 8/5/2020 | Cultural Experiences Abroad, Inc. | Infinedi Partners, LP | Study abroad educational programs for US university students in foreign countries. | – | – | – |
| 1/1/2020 | Vital Intercambios | Victoria Education Group | Consultancy intended to provide citizens with linguistic and cultural knowledge. | – | – | – |
| 1/1/2020 | Corporate Travel Planners | Corporate Travel Management | Travel agency with special university travel programs. | 36.0 | – | – |
| 10/16/2019 | Blueberry | Educations Media Group | Sweden’s largest study abroad company. | – | – | – |
| 8/9/2018 | Envision Experience | WorldStrides | Career exploration and leadership programs serving PreK-12 students. | CF | CF | CF |
Source: PitchBook. Enterprise value in US$ millions.
Multiples shown where disclosed.
EV = enterprise value. CF = confidential.
| EV / Rev | EV / EBITDA | |
|---|---|---|
| Mean | 1.1x | 10.6x |
| Median | 1.1x | 10.6x |
| Harmonic Mean | 1.1x | 9.9x |
Meet the Team Behind This Report
With over two decades of experience, Jacob is the Managing Director of Navagant, having been a key contributor since its inception. Leading as Managing Director and Co-Founder, he has played a vital role in establishing Navagant’s strong brand presence, building relationships with clients and servicing them with integrity. Demonstrating a remarkable talent for deal-making and unwavering dedication to his clients, Jacob has earned recognition as a leader in various industries, most prominently the Education and Training industry. He began his career at Rabobank International and later focused on software and direct marketing industries with Andersen Corporate Finance LLC. Then, in 2003, he founded Capstone Partners and led its Education and Training Practice until 2023, when he co-founded Navagant.
Shawn is a Founding Member and Managing Director of Navagant and brings over 19 years of experience to the firm. Shawn has led execution efforts on 70+ transactions resulting in over $3.5 billion of proceeds for clients. He assists owners of middle-market companies in achieving their strategic growth objectives, exit strategies, and liquidity goals. Formerly, he served as a Managing Director of Capstone Partners in the Education and Training practice. His investment banking career began with Raymond James, where he focused on deal execution and client development for both public and private companies. Shawn’s previous experience includes serving as an officer in the US Navy where he served as a destroyer navigator and communications officer, student naval aviator, and fleet Tomahawk cruise missile officer.
Jeff is a Director at Navagant and has over 15 years of Capital Markets, M&A, and Corporate Finance experience across Consumer & Retail, Diversified Industrials, Energy, Logistics & Transportation, Business Services, and Specialty Finance industries. Prior to joining Navagant as a Founding Member, Jeff was a Vice President in Capstone Partners’ Education and Training practice and a Senior Vice President in BB&T Capital Markets’ Debt Capital Markets Origination team, where he was integral in expanding the Bank’s Corporate Banking initiative. He began his career as an Analyst in the BB&T Capital Markets M&A team serving a wide variety of industries.
Sachin is a Vice President at Navagant. Prior to Navagant, he was an Associate at Capstone Partners, an Analyst at DC Advisory, and a Summer Analyst at Sagent Advisors. Sachin graduated from the University of Michigan, Ross School of Business with a BBA in Finance and is based in Chicago, Illinois.
Endnotes & Sources
- HolonIQ. $196B International Education Market Set to Reach $433B by 2030 at 7.4% CAGR. Accessed July 30, 2023. https://www.holoniq.com/notes/196b-international-education-market-set-to-reach-433b-by-2030
- BestColleges. As Study Abroad Rebounds, Lawmakers Introduce Bill to Expand Access. Accessed July 25, 2023. https://www.bestcolleges.com/news/study-abroad-rebounds-near-pre-pandemic-level/
- Open Doors Data. Number of US Students Studying Abroad in 2020/21. https://opendoorsdata.org/infographic/number-of-u-s-students-studying-abroad-in-2020-21/
- The Atlantic. Facts Behind Studying Abroad. November 2013. Accessed July 24, 2023. https://www.theatlantic.com/politics/archive/2013/11/facts-behind-studying-abroad/430374/
- iSchoolConnect. Study Abroad Trends in 2023: A Perfect Guide for Students. Accessed July 22, 2023. https://ischoolconnect.com/blog/study-abroad-trends-in-2023-a-perfect-guide-for-students/
- USA Study Abroad, US Department of State. US Government Scholarships and Programs. Accessed July 25, 2023. https://studyabroad.state.gov/us-government-scholarships-and-programs
- Institute of International Education. Spring 2023 Snapshot on International Educational Exchange. Accessed July 22, 2023. https://www.iie.org/publications/spring-2023-snapshot-on-international-educational-exchange/
- Institute of International Education. IIE Study Shows That Studying Abroad Has a Direct Impact on Skills Needed for Career Success. Accessed July 20, 2023. https://www.iie.org/news/2017-10-02-gaining-an-employment-edge/
- Terra Dotta. Voices of the Students 2023. Accessed August 7, 2023. https://www.terradotta.com/ebook-voice-of-students-2023.html
- Terra Dotta. Voices of the Students 2022. Accessed August 7, 2023.
- NAFSA. Trends in US Study Abroad, Locations by Host Region. 2016 and 2021.
- PitchBook Data. Study Abroad and Experiential Learning M&A Activity and Public Comparable Company Data. 2018 to 2023.