Morgan Stanley was looking to invest in Narayana Group, a chain of educational institutes having sizeable operations from KG to 12 including Test preparation Centres. The group has more than 3 lakh students with a pan India presence.Before finalizing the investment Morgan Stanley wanted to do a commercial risk assessment associated with the current business practices of the group.
Morgan Stanley engaged Loestro to do an assessment of the business operations in order to identify potential risks arising due to current practices.Given our operating and strategic experience in the education sector we were rightly placed to evaluate commercial risk associated with the business.
Loestro team followed a structured approach to identify the commercial risks and recommend the action plan to mitigate the same.
1. Our Team Conducted a comprehensive 360 degree primary research to understand the current business practices. This included :
2. We benchmarked the business practices of the target with Industry standards
3. We synthesized the data to articulate the gaps and suggested mitigation strategies
Management team acknowledged the problems and immediately startedi mplementing the suggested action plan.The study and the action plan gave confidence to Morgan Stanley,resulting in the closure of the deal valuing to more than $70Mn