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Change of Ownership (non accordion)

 

 


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 corporations.

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.

Refund Liability   

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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Payment Information

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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Application Process 

RESPONSIBLE 
PARTY
 
ACTION STEP
 
Institution
 
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"

Institution

STEP 2 - Purchase Change of Ownership Application Process

      Instructions for purchasing an application
 
Institution

 

 

 

 

 

  

 

 

 

 

 

 STEP 3 - Document Submission

Download and complete the following documents:

               • Change of Ownership - Part 1

               • Buyer / Seller Affidavit and Certificate  Microsoft Word 2007
               • 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 
                  held corporations)

                  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 
                  system (EDM). 

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Institution

 

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      
 
ACICS
 


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.

 

ACICS
 

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
 


S
TEP 7 - ACICS notifies the institution and all other interested parties of the Council's decision to reinstate accreditation
 

 

Institution
 
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. 

 


ACICS

 


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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