About the Change of Ownership Application
A change of ownership or control generally occurs when ownership
or control of the primary assets of an institution or the authority to operate
an institution is transferred from the controlling corporation, limited
partnership, or limited liability company to another corporation, limited
partnership, or limited liability company. A change of ownership or control,
however, has not occurred when there is a transfer of assets among wholly owned
subsidiary corporations or 22 ACICS Accreditation Criteria between a
wholly owned subsidiary corporation and its parent corporation; a transfer of
assets from a subsidiary corporation to its parent corporation where the parent
corporation owns a majority of the outstanding stock of the subsidiary
corporation; or a transfer of assets among subsidiary corporations where the
common parent owns a majority of the outstanding stock of the subsidiary
Any change of ownership or control results in the immediate and
automatic discontinuation of an institution’s grant of accreditation. The grant
of accreditation may be reinstated only upon application to and approval by the
Council. Because the discontinuation results without action or prior approval
on the part of the Council, this change in status does not constitute
withdrawal of accreditation and is not a negative action.
After the grant of accreditation has been discontinued, it may
be reinstated at the discretion of the Council within 30 days of the change in
ownership/control. Until the Council approves a reinstatement of the grant of
accreditation, the accreditation of the institution remains in abeyance. If
approval of the application for reinstatement is withheld, the matter will be
treated procedurally as a deferral or denial, as the case may be. (See Title
II, Chapter 3, Council Actions, for further information.)
Following the reinstatement of accreditation, the institution is
required to host a quality assurance monitoring visit within six months of the
effective date of a change of ownership/control. The Council may require the new
owner(s) and the chief on-site administrator to attend an ACICS Renewal Accreditation
Workshop prior to the quality assurance monitoring visit or within one year of
the transaction date.
The Council holds the institution responsible for all tuition refunds due regardless of when the liability occurred. If a previous owner is contractually liable for a refund but fails to fulfill the obligation, the new owner must satisfy the claim of the student or government agency and seek relief from the former owner in a separate action.
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Please note that all outstanding invoices must be paid before purchasing an application. To view outstanding orders, go to MY ACCOUNT once you are logged in.
For a complete list of fees, see the Schedule of Fees. For payment by check, see the following instructions.
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STEP 1 - Registration
New owning corporations (corporate registration), Chief Executive Officers (individual registration), partners (company registration) and individuals responsible for operations (individual registration) are required to create an account with ACICS.
Click here "For Guidance on How to Register"
STEP 3 - Document Submission
Download and complete the following documents:
• Change of Ownership - Part 1
• Buyer / Seller Affidavit and Certificate
• Statement of Responsibility for Refund Liability
• Contract of sale or purchase agreement
• State authorization to operate under new ownership/control
• Current owner's most recent Annual Financial Report (ACICS AFR)
• Current owner's most current fiscal year audited financial statement
• Organizational chart
• New owner's stockholder personnel profile(s) (resume)
• New owner's most recent fiscal year audited financial statement
• Ownership / Control Disclosure Form.
Select one of the following forms:
• Privately Held Corporation
• Limited Partnership with Corporate General
• Publicly Traded Corporation
• Not for Profit Corporation
• Limited Liability Company
• NOTE: The Contract of Sale or Purchase Agreement should include
A complete copy of the contract of sale or purchase
agreement and all documents related to the change of
ownership including, the bill of sale enacted on the date
of closing, promissory notes, management agreements,
consulting agreements, noncompete agreements, and, if
the sale is a stock purchase, photocopies of the stock
certificates indicating the transfer of ownership.
• The stockholder’s personnel profile(s) (resume) should include
Personnel profiles outlining the preceding ten years that
include the education, experience, and all proprietary
school affiliations of the top three on-site administrators.
These profiles also must be submitted for all stockholders
having 10% or more of the stock or ownership interest in
the owning entity or corporation (does not apply to publicly
The organizational chart should represent the ownership change
and include the percentage ownership breakdown of each entity
in the chain of ownership and all individual's partnerships, LLC's
corporations, trusts, or other forms of ownership.
All resumes are to be combined in one document for
submission to the ACICS electronic document management
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TEP 4 - Submission of Part II Documents
Within five days of the change in ownership/control transaction date, the following documents must be uploaded:
- New owner's pro-forma opening day balance sheet
- New owner's CEO certification of pro-forma balance sheet
- Designated Delegate form
STEP 5 - ACICS reviews the Change of Ownership - Part I Application
and supporting documentation and presents to the Financial Review Committee for further review and recommendation to the Council for reinstatement of accreditation.
STEP 6 - Council if in session, or the Executive Committee, acting on behalf of the Council reviews the application
and supporting documentation as well as the recommendation from the Financial Review Committee and decides
ACICS & Institution
STEP 7 - ACICS notifies the institution and all other interested parties of the Council's decision to reinstate accreditation
STEP 8 -Quality Assurance Monitoring Visit
The institution is required to host a quality assurance monitoring visit within six months of the change in
For more information on the ACICS standard visit procedures click here.
STEP 9 - ACICS Renewal Accreditation Workshop Attendance
The Council may require the new owner(s) and CEO attend an
ACICS Renewal Accreditation Workshop prior to the quality assurance
monitoring visit conducted as a result of a change in ownership.
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