Global PE firm ran CDD on K-12 firm via 1,400+ surveys & 5-year revenue/EBITDA projection
08 Apr 2020
1 min read
K-12 education business is on a boom for a low investment franchise business. Praxis provides with a comprehensive company profile study, differentiation from competitors, the study of market attractiveness and the view of franchise holders and parents, estimates of revenue & EBITDA growth, and value creation blueprint
Context
- Company Description: A large global private equity firm
- Opportunity: The client was interested in acquiring a K-12 supplementary education aids B2C company. It was a due diligence case to profile the business, understand and estimate the market, benchmark the product against the competition, project revenue and EBITDA Margins for the next 5 years
Our approach
- Conducted more than 40 one-to-one parent and student interviews (cold) and more than 5 competition and expert interviews
- Conducted two extensive surveys: Parent (N > 1,000) and Student (N > 400) to understand the customer experience and perception about the company
- Conducted deep product benchmarking exercise with 5 competitors by minutely reviewing content, technology, and effectiveness of the lessons provided by each player
- Conducted market sizing exercise to understand market attractiveness and potential
- Estimated 5-year revenue & EBITDA growth for different product segments