Someone needs to explore the conditions under which DCEH purchased EDMC. Goldman and Providence wanted to unload EDMC to anyone who would take it. Sales price says $60m but that loan doesn’t have to be paid if it the company didn’t turn around. Furthermore the $60m valuation was a pipe dream and likely financially engineered so the former CEO could get paid. I can’t believe the DCEH group or our own government DOE would allow a deal like this thru. Made for a movie. These DCEH guys have no education experience and basically bought a bunch of execs from GCU who were arrogant enough to think they could fix what Goldman’s money could not do for 4-5 years. The truth is that they further weakened the institutions and didn’t see the cliff that the organization was about to fall off cause they are incompetent.
The PE guys just wanted out so they weren’t on the hook for all the closures. Due diligence was either not done or there was no governance on this deal.
Someone needs to investigate the conditions of sale. The answer is there and you will find the need to Go back and sue KKR, Goldman, and Providence Equity.
This couldn’t be any truer. Thanks for this post @Xgvo9eH-zse .