Atlanta School Sale Signals Shift in Early Education Investment Strategy

ATLANTA, GA – January 13, 2026 – In a move that highlights significant trends in the U.S. early childhood education sector, premier Atlanta-area learning center East Cobb Prep has been acquired by Cadence Education, one of the nation's largest private school operators. The transaction, facilitated by sell-side advisory firm SchoolWise Partners, is notable not just for the change in ownership, but for its structure: a fully integrated deal that includes both the school's operations and its underlying real estate.

This integrated 'OpCo-PropCo' (Operating Company-Property Company) sale points to a sophisticated evolution in how childcare businesses are valued and traded. As large operators continue to consolidate a fragmented market, the combination of business operations with physical assets is becoming a key strategy for ensuring long-term stability and maximizing value for buyers and sellers alike.

Consolidation Continues in a High-Demand Market

The acquisition of East Cobb Prep by Cadence Education is a prime example of the ongoing consolidation wave sweeping through the early learning industry. Cadence, a portfolio company of private equity firm Apax Partners, operates over 300 schools across 30 states and has built its extensive network largely through strategic acquisitions. Since 2016, the company has partnered with over 200 independent providers, folding established, high-quality local schools into its national brand.

This strategy is particularly potent in high-growth, high-demand metropolitan areas like Atlanta. A 2022 study by Reinvestment Fund revealed a staggering shortage of 84,500 childcare seats across the five-county metro region, including Cobb County where East Cobb Prep is located. With a market that can only serve roughly two-thirds of the potential demand, well-regarded schools with strong academic reputations are highly attractive targets for large-scale operators seeking to expand their footprint.

For Cadence, acquiring a school like East Cobb Prep—known for its strong programming and experienced leadership—provides an immediate, turnkey entry into a desirable suburban community. This approach allows the larger company to bypass the significant challenges of building a new center and reputation from scratch, instead leveraging the existing community trust and operational success of the acquired school.

A Strategic Blueprint: The 'OpCo-PropCo' Advantage

What sets this transaction apart is the unified sale of both the business (the 'OpCo') and its property (the 'PropCo'). This model, while common in other asset-heavy industries, is gaining significant traction in the early education space. By acquiring the real estate along with the operating company, Cadence Education secures complete control over the facility's future, eliminating the risks associated with third-party landlords, lease renewals, and potential rent hikes.

For the sellers—former owners Marguerite O'Brien, Erin Fleishman, and Kelli Milz—this integrated approach offered a path to maximize their return while ensuring the school's continuity. Selling an established business and its purpose-built real estate as a single package is often more attractive to strategic buyers and can command a premium valuation.

"This transaction underscores the importance of running a structured, confidential, and data-driven process when marketing both an operating childcare business and the underlying real estate," said Scott Verdine, Director at SchoolWise Partners, the firm that exclusively advised the sellers. "By positioning East Cobb Prep effectively and aligning it with the right strategic partner, we were able to deliver a clean execution and a highly favorable outcome for our clients."

The success of this model reflects a broader trend where early education facilities are increasingly seen as a stable and lucrative commercial real estate asset class, attracting institutional investors who value the long-term, recession-resilient demand for quality childcare.

Balancing National Scale with Local Legacy

For parents and staff at East Cobb Prep, the acquisition by a national operator naturally raises questions about the future. However, Cadence Education's model often involves integrating its proprietary resources while aiming to preserve the unique character of the schools it acquires. New additions to its portfolio typically gain access to the 'Ascend Curriculum' and the 'Kind Child' program, which focuses on social and emotional development.

This infusion of a standardized, resource-rich curriculum and corporate support structure can provide significant benefits, from enhanced professional development for teachers to expanded educational programming for children. For the former owners, ensuring the school's legacy was a critical factor in the sale.

"Selling both our childcare business and the underlying real estate was a complex and emotional decision, and having the right advisory team made all the difference," the former owners stated in a joint release. They praised SchoolWise Partners for providing "deep industry knowledge, a disciplined process, and steady guidance" that helped them secure a deal that met both their "financial and legacy goals."

This sentiment underscores a crucial aspect of such transactions: the need to balance the financial objectives of the seller with the long-term well-being of the school's community. The acquisition ensures that a vital piece of community infrastructure in a childcare-starved area will continue to operate, now backed by the resources of a major national provider.

In a sector defined by both its community-level impact and its increasing appeal to large-scale investors, transactions like the East Cobb Prep sale serve as a powerful indicator of the market's future. The strategic bundling of operations and real estate, guided by specialized advisors, provides a sophisticated blueprint for growth and succession that ensures stability for families and educators while unlocking significant value for the founders who built the businesses from the ground up.