HiTech IT and Tech
Commercial due diligence for a SaaS Co.
28 May 2020
Context
- Company Description: Large Indian hospitality player
- Opportunity: Due diligence to profile the business, understand the market, benchmark the product, estimate standalone revenue and acquisition synergies
Our Approach
- We extensively analyzed financials and built out potential future cases
- Conducted market sizing exercise and product benchmarking to understand market attractiveness and potential
- Conducted >700 customer interviews (cold and warm) and >30 industry stakeholder interviews
- Estimated 5-year revenue & EBITDA growth using 3 scenarios: BAU, base case & aggressive growth case
- Identified different potential synergies / dis-synergies arising out of the acquisition & estimating the monetary impact for each
Key Insights / Outcomes
Price realization in Asia & LATAM decreases with growth as Incremental customer acquisition could come at a lower price point
Tech team in politically risky geos are prone to de-stabilization, diversification to multiple geos helps mitigate risk
Praxis Value Delivered
- Deep, comprehensive company profile study, a study of market attractiveness
- View of the customer, product benchmarking, estimates of revenue & EBITDA growth
- Potential acquisition synergies
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