The bit about if it were a good idea to acquire a distressed university that someone else would have done it already reminded me of the old joke:
Economist 1: Look, there’s $20 on the ground!
Economist 2: No there isn’t. If there were, someone would have picked it up already.
That said, however, I agree it's a pretty big red flag. Especially when university Boards and Presidents are often in denial about their situations and wait to seek an acquirer until it's no longer viable.
The bit about if it were a good idea to acquire a distressed university that someone else would have done it already reminded me of the old joke:
Economist 1: Look, there’s $20 on the ground!
Economist 2: No there isn’t. If there were, someone would have picked it up already.
That said, however, I agree it's a pretty big red flag. Especially when university Boards and Presidents are often in denial about their situations and wait to seek an acquirer until it's no longer viable.