Business case
Our client, a leading player in education, was considering acquiring a stake in a European education company operating in several areas (art, design, etc.).
Education is a highly regulated business (e.g. minimum number of teaching hours to obtain a diploma). The target’s profitability therefore had to be analysed taking into account the different levels of regulation in each country where it operated. In addition, companies in the education sector require a detailed review, programme by programme and class by class, since part of their profitability derives from management’s ability to fill each class with the maximum number of students.
We conducted buy-side due diligence. Given the high level of competition for the target and the general appetite for the education industry, we had to work rapidly in order to assess the level of risk and potential upsides related to the transaction, even those that had not been quantified by the seller.