Case 1: B2C Indian Ed-Tech Company

Background: A fast-growing Indian education company sought US$200m+ from a range of investors. The Company was fast growing, benefited from a series of high profile investors, and was continuing to consolidate its presence domestically and abroad. 

Task: Evaluate the company's performance

Results: Whilst in a dominant market position, it was evident that:

  • Growth was beginning to plateau vs competitors
  • Cost of acquisition was rising to sustain top-line growth
  • Growing customer disillusionment was evident, impacting referrals, and highlighting product / legal considerations
  • Poor organisation structure ill-suited to support growth 

 The recommendations were that the company's performance was likely to invert and deteriorate within an 18-24 month period

Outcome: The Company successfully raised US$'000m, but within 12 months began to experience a series of operational issues resulting in its valuation being substantially reduced 24 months later. 

Case 2: B2B Healthcare opportunities in SE Asia

Background: Healthcare spending in SE Asia is expected to see robust growth as its population matures, representing a fast growing industry segment, but where opportunities are scarce and expensive (EV / EBITDA multiples > 15x not uncommon)

Task: Find opportunities across different healthcare sub-segments in Singapore, Hong Kong, Malaysia, Thailand, Vietnam, Indonesia and the Philippines

Results: Using Matsu's platform, this:

  • Found a series of companies across all these geographies, with a focus on In-Vitro Diagnostic (IVD) laboratories becoming of focus, given recent favourable precedent transactions from the likes of Quadria Capital (Lablink) and TPG (Pathology Asia)
  • Identified that the IVD market was quite mature in Singapore and Malaysia, but highly fragmented in Thailand, Vietnam, Indonesia and the Philippines
  • Was able to identify over 100 different laboratory operators in these countries, from "mom and pop" to more sizable laboratories, that could support origination outreach and represent a potential funnel of bolt-on opportunities 
  • Helped produce a long-list of subject matter experts that could guide on the industry and specific competitor developments

Outcome: Led to outreach to one laboratory operator culminating in a live deal process 

Case 3: Qualifying acquisition leads in Hong Kong and Singapore - Veterinary clinics

Background: APAC pet-care market expected to grow rapidly towards US$132bn by 2027. Veterinary clinics are expected to benefit, but within high-paying markets like Hong Kong and Singapore, ownership remain highly fragmented

Task: Across over 300 clinics in Hong Kong and Singapore in aggregate, classify performance by quartiles to determine suitable outreach / lead qualification

Results: Using byspoke Matsu tools, this:

  • Mapped out each clinic in these markets, ranking their performance by geo-location, likely traffic and revenue growth, along with strength of both customer and employee relationships, and how this was likely to affect year-ahead performance
  • Identified clinics that were both undervalued / over-valued, and guided out-reach
  • Identified high-performing clinics and employees, that could be recruited to support any acquisition made

Outcome: Led to targeted outreach to selective clinics whilst avoiding poor-performing assets