"if private schools cost that much to run and still don't turn a...

"if private schools cost that much to run and still don't turn a dime, then why was ABC Learning so attractive to start with?"


It is the same model as private hospitals.
It is possible to make money by controlling costs and providing a good quality service.
But most importantly, and this is where ABC Learning failed, you must not overpay for the assets you acquire, to the extent that there is no hope in hell that you will ever recover your cost of capital. ABC Learning got into trouble by overpaying for their acquisitions.

I know that private schools are unique, through church affiliations and what not, but would anyone start Xavier College from scratch these days ?
Would you buy half of Kew's real estate at current market rates and then run a school hoping to make an adequate return ? No. You would do a residential development, wouldn't you ?



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