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Transitioning a High School to a PLC: Financing, Ownership, and Potential Changes

This article explores the process of converting a high school into a Public Limited Company (PLC), including financing options, share price determination, ownership changes, and potential adjustments to attract new customers.

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Transitioning a High School to a PLC: Financing, Ownership, and Potential Changes

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  1. This High School is a Public sector organisation… Who owns the school at present? Why do you think the Government chooses to provide State Education?

  2. How is it funded at present? What objectives do you think the school has?

  3. Breaking news : Last Updated : Saturday, 15 December 2014, 13:52 GMT 14:52 UK……

  4. The Welsh Assembly, under new powers, has voted to allow the privatisation of state owned schools in Wales…

  5. You are put in charge of converting this High School into a PLC. It will no longer be a Public Sector, government owned organisation. First, you will need to obtain the money to pay the Government for the School.

  6. How does a PLC raise finance? So what will you have to arrange?

  7. Why might people want to buy shares in the School?

  8. You now need to decide upon a share price. What is the value of the School?

  9. A) The land and other assets have been valued at £2million. B) It is estimated that 200,000 Shares will be bought (2000 people will buy 100 shares each)

  10. So what price will you issue the shares at?

  11. The privatisation is successful, the High School is now a Public Limited Company, what letters must appear after the name of the school? HHS PLC Who will own the school now?

  12. How do you think the school will obtain income every year? A typical Independent School will charge Annual Fees of £10,000.

  13. The School at present runs on a budget of £3,600,000 PA

  14. And there are 1200 pupils

  15. How much would HS PLC need to charge each pupil per year in order to break-even ? (Cover their running costs) What yearly fee would you charge and how much profit would be made?

  16. Would every pupil who wanted to, still be able to come to this school? What changes might be made to the school to attract new customers?

  17. You will present a case to the Welsh Assembly either for or against privatisation of the High School. Use images, graphs and evidence to support your case.

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