If you’re planning to sell your education business, taking a few proactive steps now can save months of delay later.

Based on my experience working on M&A deals in the education sector, the following are common issues that could slow down your sale and how to rectify them early:

𝟭. 𝗘𝗻𝘀𝘂𝗿𝗲 𝗽𝗮𝗿𝘁𝗻𝗲𝗿𝘀𝗵𝗶𝗽 𝗮𝗴𝗿𝗲𝗲𝗺𝗲𝗻𝘁𝘀 𝗮𝗿𝗲 𝘂𝗽 𝘁𝗼 𝗱𝗮𝘁𝗲

Education service providers or institutions often enter into agreements with one another to facilitate student enrolment. These agreements usually last a few years and are renewed if the collaboration remains viable.

It’s common for the parties to continue with the collaboration even after the initial agreements have technically expired. Buyers, however, will expect valid and current agreements to ensure continuity of operations and revenue after their acquisition.

Tracking and renewing the agreements now can avoid last-minute paperwork delay.

𝟮. 𝗘𝗻𝘀𝘂𝗿𝗲 𝗖𝗲𝗿𝘁𝗶𝗳𝗶𝗰𝗮𝘁𝗲 𝗼𝗳 𝗖𝗼𝗺𝗽𝗹𝗲𝘁𝗶𝗼𝗻 𝗮𝗻𝗱 𝗖𝗼𝗺𝗽𝗹𝗶𝗮𝗻𝗰𝗲 (𝗖𝗖𝗖) 𝗶𝘀 𝗮𝘃𝗮𝗶𝗹𝗮𝗯𝗹𝗲

Education service providers or institutions may own or rent buildings for their operations. It is an offence to occupy a building without a CCC under the Street, Drainage and Building Act 1974.

Make sure you or your landlord have the CCC ready to show the buyers’ lawyers during legal due diligence.

𝟯. 𝗖𝗵𝗲𝗰𝗸 𝗮𝗹𝗹 𝗿𝗲𝗴𝘂𝗹𝗮𝘁𝗼𝗿𝘆 𝗮𝗽𝗽𝗿𝗼𝘃𝗮𝗹𝘀 𝗮𝗿𝗲 𝗶𝗻 𝗽𝗹𝗮𝗰𝗲

Depending on the nature of your business (e.g. colleges or tuition centres), registrations, accreditations and licences from the Ministry of Education, Ministry of Higher Education, Malaysian Qualifications Agency and local councils may be required.

Keeping these approvals up to date protects the reputation and value of your business and reduces the risk of penalties that could raise red flags for potential buyers.

Conducting these checks early can help avoid delays and ensure a smoother sale process.

#malaysiancorporatelawyer

This post was first posted on LinkedIn on 2 May 2025.