Oi Playschool is a successful pre-school chain based out of south India. The Chain was a part of a bigger education company which has operations in K-12,Test Prep and EdTech Businesses apart from Pre-School. Oi Playschool had a mix of company owned – company operated centres apart from franchisee operations.
The Promoters of the Oi Playschool had divested from their core K12 business and wanted to find a strategic partner for the pre-school business as well. LoEstro was appointed as an exclusive financial advisor for the deal.
We worked with the promoters and the management to get the business deal ready. This included building a strategic vision positioning of the business,carving the deal story and the structure, aligning the various stakeholders –promoters, management, external stakeholders including landlords and franchisee partners, enhancing the compliance level and finally marketing the
We have always tried to be unconventional about our deal marketing. In this case while we knew that Oi Playschool will be interesting to larger preschool operators in the country who do not have significant overlap with Oi Playschool –we also believed that there could be other players who could have a different kind of strategic fit with Oi Playschool. With that intent we reached out to K12 schools, Kids Toys and Apparel brands amongst others. At the end of the process we were able to get interest from various kinds of strategic partners for the business
After evaluating the 3+ options which had emerged we worked with the promoters to finalize FirstCry as the partner for Oi Playschool. This was driven by the alignment of vision and interest between the parties, the long terms plans of firstcry and also the interest of management and other stakeholders. We concluded the vendor diligence and completed a complex two phase transaction – one for the COCO business and one for the franchisee business in a record time.
Read More about the deal here :