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How Much Is Your Law School Worth on the Open Market?

College Life, an Orange County Register blog, reports that "Orange County's first law school [Western State University College of Law], which educated an entire generation of lawyers and judges here since it was founded in 1966, has been sold to an education company based in Geneva, Switzerland.... The deal was estimated valued between $5 million and $10 million, according to SEC documents filed July 16 by Education Management LLC, the parent company of the for-profit law school."

Benjamin Davis (mail):
Just don't assume the value is the law school. What about the real estate? Depending on what use it is put to, the real estate might be the deal with the Law School thrown in for free.
Best,
Ben
7.17.2008 8:46pm
wooga:
Yeah, given that UC Irvine just started their law school (recall the Chemerinsky hire/fire/hire debacle), there is just too much competitive pressure on the smaller law schools in Southern California. I think Western State's biggest asset is now the land. If I were the buyer, I would convert Western State into an online only school (and keep the 'since 1966' tagline) and raze the site.
7.17.2008 10:11pm
zooba:
Yea, the land is on a corner, right across the street from Cal State Fullerton on a major thoroughfare. I'd imagine it would go for quite a pretty penny.
7.17.2008 10:29pm
Should be bar studying:
From the 8-K filing:
The Registrant is also negotiating for a separate sale of the real property upon which the Law School is located. In the event that the Registrant does not enter into a purchase agreement for the real property prior to November 1, 2008, the Purchaser has an option to either purchase the real property in connection with the closing of the Stock Purchase Agreement or enter into a two-year lease with the obligation to purchase the real property for additional consideration upon expiration of the lease.
7.17.2008 11:25pm
theobromophile (www):
Approximately 130 students enrolled per class year; tuition is about $29,000/year for full-time, and $20,000/year for part-time. (Here.)

So 400 students, paying about $25,000/year each -> very roughly, $1 million annual revenue. (Obviously, the proportion of full time to part time affects this, as does financial aid, loan repayment, etc.) It could be worth about $5-$10 million based on that, or it could be the value of the land. I do wonder, though, about zoning restrictions and the issue of getting changing over from a law school to something else while students are still enrolled. (I imagine that you cannot simply cease functioning and kick your students out.)
7.17.2008 11:55pm
LtScooby (mail):
Law schools are worth MUCH less then we pay for them. Much. Professors get paid upwards of 250K to teach 5 credit hours and students pay 25-35K/year to hear someone talk about what they want to talk about and what THEY say the law is while we have a "library" that is a study space. How many students take books out? None. I teach myself. Slave labor in the Reviews and journals and schools that don't offer additional services. Offices of career services who could not care less of you if you are not in the top 1/3 at the end of 1L, no tutorial help, and an arrogance reminicent of 15th century France. To quote Will Hunting "I got the same education you did for $1.25 in late fees from the public library."
7.18.2008 9:16am
buddy (mail):
Western state is provisionally approved by the ABA and working toward full accreditation. An online or correspondent law school will not qualify for ABA accreditation. So if the new owners of the law school move the school to an online format, they can kiss the ABA accreditation good-bye. This is not likely to happen.
7.22.2008 6:17pm