When a company buys a GOOD company, they buy the products and the intangibles (CCI buying Heald). These types of purchases have minimal lay offs. When a company buys a garbage company that has compliance, ethical, financial, and regulatory issues that FORCE them to be sold, the buyer is essentially looking to buy a cheap carcass they can either a. liquidate piece by piece for a profit, b. use as a tax shield, or c. attempt to incorporate into their current organization. THESE types of purchases result in 99.99999% of the previous organizations staff to be fired. When a company buys another company for DIRT cheap, it has ALL the financial flexibility to clean house and start new. They are also able to secure vendor concessions because the vendor knows it will take few months to sort through the remains of the CCI carcass. This ALSO provides more incentive to fire previous CCI staff.
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19538 - that's an important point. CCi has shown itself to be unethical in its business dealings and unresponsive to authority. That is embedded in our culture. We are not healthy and will be purchased on the cheap, basically for "spare parts." Most of the campuses are leased, for a start. Not much tangible value. Management does have to go because they are known to be untrustworthy at this point. Some staff may stay on, but don't get your hopes up. You should all be looking for work now.
Heald was healthy at the time of purchase.
I really enjoy the laughs I receive from these type of posts. First off, ALL is an absolute and only occurs during deatch in that ALL must die. If this incorrect statement would have used the term MOST or SOME it would have been MORE correct. I have been employed by two different employers who thought better to sell the company rather than fix. Both new owners brought in SOME resources early and then additional after understanding more the complex situation. But NEVER (here it works) did he (as he informed us) ever consider a complete across the board replacement of human rescources. Please as you make these blanket statements, think while you type and re-read to make sure it conveys reality!
My question is, when CCI acquired Heald college, did CCI lay off most of its employees? Some of the comments on here from veteran Heald employees talking about "the good old days before CCI" lead me to believe they did not, but I could be wrong which is why I'm asking. Also, the main concerns and reasons we are in trouble come from reporting less than accurate placement numbers, advertising, etc. There is always the high default rates, but how is that a finance planner issue? Finance planners just help students fill out a few docs and goes over an estimate. It seems more like an institutional issue. Use a little critical thinking and take the facts into consideration before posting next time.
I agree with 19478. I've been through quite a few acquisitions. All levels of management will go first, and they will bring in their own teams. The rest depends on the situation. In CCi's case all placement and admissions will almost definitely be let go. They are the departments that caused the regulatory concerns. The new owner can demonstrate a good faith effort not to let the issues recur by changing the staff in those offices. Because if there were further issues found, and they had not hired new staff, it would look really bad.
I can think of several fools who need to go and they are supervisors. Maybe we will get lucky. My question is who will buy these schools?
Being one that has been through few buyouts before, this is not entirely true, YES some must go but not all.
Admissions, CS, and administration take the biggest hits, and historical education, and FA weathers the storm with little impact.
This again??. Cool story bro.