Challenge - explained

As a leading private equity fund with focus on high growing sectors in South East Asia including Vietnam, Praxis Capital Partners approached some private education businesses in Vietnam for prospective PE investment. While the media headline and general observations confirmed the potential of the market and the business model of 3 selected target companies, there are an absence of market data and primary research in Vietnam to confirm the investment themes. Previously Praxis engaged a international consulting firm to study the market but there have been a lack of “on-the-ground” data-driven evidence and analysis supporting their themes.

Solution:

The answer to the dilemma came in the form of market due diligence conducted by FiinResearch. The scope of works includes: Conducted a detailed review about education sector in general and high-school segment in Hanoi. Analysed the market sizing and forecasted the growth for next 5-10 years. Reviewed regulatory and policy changes which may favour or create challenges for the business model. Conducted financial and operational benchmarking for the selected target against peers in the same region.

Results:

Key findings from the market due diligence presented to the Investment Committee for final investment decision. FiinResearch also helped discuss with their investment banker who financed the majority of the transaction as this Client has a controlling stake in the Vietnamese target. Mr. Kwanhoon Lee, Co-CEO and Partner of Praxis Capital Partners, said: “We appreciate the efforts and capability of FiinResearch’s project team. The results of the project have supported us so much in thoroughly assessing the market growth potentials, the target company’s business attractiveness, its market positioning as well as in making informed decisions in the transaction”.