Outsourced School Services: Wide-Ranging Challenges Spark Demand

Featured Professionals: Taylor Will, Martin Keck, Andy Dixon, Andy Leed

K-12 schools are tasked with delivering a wide array of services—from core education and instruction to transportation, nutrition, physical and behavioral health, after-school programming, and more—to a diverse population of students with many different needs.

As a result, schools and districts across the country are increasingly seeking outside assistance to better support their students. This is particularly true for students who require extra care and are entitled to specialized services under the Individuals with Disabilities Education Act (IDEA) and other state and federal mandates.

Below, we share why outsourced school services are in demand and how several of our recent clients demonstrate the opportunity.

Seeking External Expertise

Across K-12 education, behavioral health conditions are increasingly common while staffing shortages remain an issue. In fact, approximately half of all U.S. school districts recently reported special education teacher shortages.¹

“With so many kids requiring targeted care and support, many districts are partnering with external experts in psychology, speech-language pathology, mental health, specialized transportation, education services, and more,” says Taylor Will, a director in our Healthcare & Life Sciences Group.

Such solutions aren’t just vital for students with special needs—they’re also mandated. Supported by federal funding like IDEA, these services are well entrenched in law, which provides steady, resilient demand. In addition, many outsourced providers are typically contracted by school systems for the entire academic year, offering long-term revenue visibility and favorable reimbursement dynamics for investors.

“School districts will continue to need assistance with services outside of core academics, driving many opportunities for investors to participate in the space,” says Martin Keck, a managing director in our Technology Group. For example, innovative and specialized providers—like our recent clients LearnWell, Unison Therapy Services, and EverDriven—that address key student care challenges are seeing success and investor attention.

“A new wave of healthcare buyers, education-focused private equity firms, and impact funds are seeking businesses that combine documented clinical and social outcomes with strong financial fundamentals,” adds Andy Dixon, a managing director in our Healthcare & Life Sciences Group.

LearnWell: Blending Healthcare and Education

LearnWell bridges the gap between healthcare and education, providing in-school and virtual mental health, behavioral health, and academic support services for K-12 students. Harris Williams advised LearnWell, a portfolio company of 424 Capital, on its sale to Goldman Sachs Alternatives.

The past decade has seen major growth in adolescent mental health challenges, giving rise to a variety of businesses that address these needs through mental health counseling and other clinical services. “LearnWell was unique and appealing to investors due to its different angle on the market,” says Will.

LearnWell excels in serving students with high-acuity mental health conditions who are temporarily out of school, ensuring that they do not fall behind academically while receiving treatment. These academic continuity services are delivered in-person or virtually to make receiving care as easy and seamless as possible.

“This dedication to addressing the academic needs of students and helping to deliver better comprehensive outcomes has established LearnWell as a trusted partner for healthcare facilities and school districts nationwide,” adds Keck. “Goldman Sachs Alternatives’ Sustainable Investing strategy brings deep experience in scaling impact-oriented businesses, which will help enhance LearnWell’s ability to serve students, families, and communities.”

Unison Therapy Services: Supporting Underserved Students

As a multidisciplinary outsourced therapy provider for students, Unison Therapy Services serves children with developmental and speech delays, autism, social and emotional developmental needs, and behavioral challenges. Harris Williams advised Unison, a portfolio company of Ridgemont Equity Partners, on its sale to Ascend Capital Partners.

One of Unison’s distinguishing traits is its best-in-class recruiting infrastructure. Its tech-enabled approach to hiring high-quality clinical talent has resulted in strong employee retention rates—an important advantage in a difficult labor market.

“Investors are drawn to businesses with a strong value proposition and demonstrated clinical outcomes, like Unison, that can serve the large and unmet demand for pre-K-12 therapeutic services,” says Keck. “The company’s industry-leading employee retention and recruitment allow it to do just that.”

“Unison’s focus on underserved students is highly aligned with Ascend’s mission to give vulnerable populations better access to high-quality clinical care,” adds Will. “Ascend’s partnership gives Unison operational and clinical expertise to drive enhanced therapy solutions and expand its services to better aid children and families.”

EverDriven: Alternative Student Transportation

EverDriven is a tech-enabled mobility platform for alternative student transportation across the U.S. Harris Williams advised EverDriven, a portfolio company of Palladium Equity Partners, on its sale to Charlesbank Capital Partners.

The company focuses on students with special education needs, those experiencing homelessness, foster youth, and other vulnerable populations. By solving complex transportation logistics, EverDriven provides equal opportunities, mobility, and peace of mind to the communities it serves.

“EverDriven brings greater automation, compliance, and visibility into the complex process of providing transportation that meets the unique needs of these student populations,” says Andy Leed, a managing director in our Technology Group. “With Charlesbank’s partnership, EverDriven will extend its position as a leading asset-light, technology-driven platform that delivers value throughout the K-12 student transportation ecosystem.”

Making an Impact

School districts have a critical mission to better serve their most vulnerable students. And as funding increases, and awareness for student behavioral health and specialized needs intensifies, a variety of outsourced school services will continue to capture investor interest.

“Investors are looking for businesses that solve the most important challenges facing districts and families,” says Keck. “Mission-driven providers that can deliver high-quality outcomes through scalable, tech-enabled models will be highly sought-after opportunities in the years to come.”

To further discuss the M&A potential across the outsourced school services and behavioral health sectors, please contact our senior professionals.

1. https://www.brookings.edu/articles/states-face-different-special-education-staffing-challenges-that-require-targeted-responses/