Not that the cost of Heald is the cause of the downfall.... But why would CCi buy Heald with a $200ML " Goodwill" when EVERYONE knew that we were at the peak of the recession and enrollment a were bound to go down after 2010?
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The Heald acquisition was a brilliant move on the part of CCI leadership as the cash flow kept the entire company going for years longer than they could have with out them. CCI then sold all of Heald's valuable real estate to further prolong survival. The cash infusion from the sale of Heald will, yet again, buy CCi a little more time. Heald was a great brand that has been tarnished through this process. We survived 150+ years and will flourish again once we get out from underneath Corinthian. Counting the days...minutes...
Correct. Heald had the regional accreditation that Everest so desired. the plan was to piggyback on those accreditations throughout the Everest world. Also, once Heald came on board, they applied and received (July 3, 2014)the WASC (Senior College and Univ Commission) which is the highly coveted.
http://www.wascsenior.org/about/purposeofaccreditation
The WASC accreditation process aids institutions in developing and sustaining effective educational programs and assures the educational community, the general public, and other organizations that an accredited institution has met high standards of quality and effectiveness.
The Commission accredits institutions, not individual programs. Therefore, in addition to assessing the academic quality and educational effectiveness of institutions, the Commission emphasizes institutional structures, processes, and resources.
I heard that the potential deal Heald gas on the table just got lost and they are back to the drawing board
Heald had regional accreditation, which is a for-profit's dream.
Is this the real life? Is this just fantasy? ... Carry on, carry on, as if nothing really matters
http://www.youtube.com/watch?v=fJ9rUzIMcZQ
Probably doesn't, but at least it's more meaningful and thoughtful dialogue than the idiot toner poster.
Does this really matter anymore?
Yeah, the only departments they didn't touch we're FA, Student Services and Career Services. Those are the departments that did well for the past three years. But I hear it's starting to slip. You know the drill... Year one of acquisition... cCi do little, Year two... Add resources and money like Cvue, marketing, training... Year three... INFILTRATE. that's how CCI did it with other acquisitions. Doing things the one and only "CCI Way"
I heard that they may have to break up the Heald campuses, but not sure you can do that under one OPEID. So going there won't make a difference. It won't be Heald for long.
Doubt it. Heald doesn't take Everest employees. CCi CSC has pushed their way in their management team in the past three years though (academics, admissions, marketing) But at this point, they're going to try and preserve what's left of Heald. At one point, they pushed out their CEO and brought in someone they thought they could "puppet". Then once all this happened they practically begged the former CEO to come back.
All of CCi is a zombie. Working at Heald won't help.
Can I transfer and work there?
Actually, I hear that Heald was the only profitable division (though not worth $395mill). Heald has been paying Everest being in the red for some time. But not enough. All those ideas of grandeur with Heald coming on board didn't pan out. Sucks for them though because they had a good thing and a good name before we dragged them into our company. Same with Wyotech.
Yes, Heald must pay up too. Any sale must be approved by multiple parties, both internal and external, including lenders and regulatory bodies.
$395M and paid $200M than book value, thus the goodwill.
So... Does Heald have to own up to their part of the bargain and pay up???
Wow.. It was $395 million? I hear they are trying to sell for 50 million. Yeah... Someone didn't do the math with that acquisition.
The precise amount of Heald goodwill is $197.9M, from January 2010. But $200M is close enough.
It was a gamble. Someone got paid though. The investment company that sold Heald to CCi. The Campus Director and Higher up got stock options. I hope they cashed out in time.
That was back in the day when $50M was not a lot of money.
"On January 4, 2010 the Company completed its acquisition of Heald Capital, LLC, a Delaware limited liability company ("Heald") for consideration of $395 million."
We could definitely use that $350ML right about now