- Are lack of in-house resources or tight deadlines limiting the research you can do on your target?
- Would you like your assumptions or data to be validated by an independent third party?
- Is the lack of on-the-ground presence impeding your India focused investments?
ValueNotes is well positioned to leverage its wide ranging research capabilities and multi-sector domain knowledge to support informed investment decision making. We have provided bespoke research support and advisory services to several PE firms and boutique merchant banks. We have assisted these firms in target selection, M&A due diligence, partner selection, preparing investment pitches and validating investment rationale. Examples of some of our recent projects include:
Pre-due diligence on a leading IT consulting firm for a global PE fund: The investment committee of a global PE fund wanted to evaluate the attractiveness and valuation of an IT consulting firm. We analysed the financials of the firm to evaluate whether it would reach a valuation of $1bn (2.5x its current valuation), over a 3-year horizon. We presented an investment summary highlighting the competitive positioning of the target firm, along with a base best- worst case scenario analysis.
Due diligence on an auto ancillary company: The client, a boutique investment bank, wanted due diligence on the financial and operational health of a potential acquisition target – an auto parts company. ValueNotes was asked to dig deeper to assess the market standing, debt repayment history and financial status of the company. We discovered that the target company had defaulted on debt, and was highly leveraged.
Investment opportunities in the KPO sector: A private equity investor wanted to identify the investment opportunities in select KPO segments in India, including animation & media, e-learning, engineering design, LPO, pre-media & publishing, and research & analytics. We evaluated a comprehensive universe of relevant companies, and short-listed a few based on their revenues, service focus, client mix, management profiles, and future strategy.
Market opportunity assessment of the Indian poultry market: An international private equity firm wanted to assess the Indian poultry market on behalf of a large corporate that was looking to enter the Indian market. The study evaluated the current market for poultry products in India, the industry structure, segmentation, consumer behaviour, retail value chain, supply chain / distribution network, cost structures, marketing margins, regulations, and price trends.
Borrowing patterns of lower & middle income groups in India: An international private equity firm wanted to understand the borrowing patterns of lower and middle income groups in India. Given the lack of published data, in-depth interviews were conducted with lenders (banks, pawn brokers, money lenders, etc) and borrowers (based on their income, occupation and location). The report provided the total market & growth projections, types of lenders & products, loan yields of unorganised lenders, and market dynamics.
Current & future offshoring trends in the publishing industry: A private equity fund wanted to evaluate the investment opportunities in the Indian publishing outsourcing sector, with a particular focus on the STM (Scientific, Technical, & Medical) and educational publishing segments. We assessed the viability of offshoring in publishing through an analysis of publishers’ cost structures, supply chain, and a comparison of price competitiveness of onshore and offshore vendors across service areas. We also provided insights into the current and future offshoring trends in the industry
Opportunity assessment & investment appraisal of private hospitals in India: A VC fund management company wanted to evaluate the investment opportunity in the Indian hospital sector India and determine the financial health of large Indian private sector hospitals. The study involved understanding the cost and revenue structures of the hospitals, including revenue and cost per bed, EBITDA levels, salary expenses, royalty payments, interest expense, and the return on capital employed.
