By using the Hybrid Growth Diligence approach, we showcased the intrinsic value levers and the resilience of the company’s business model by showcasing:
- Its market leading position in highlighting its historical ability to grow in an environment where changes in regulation have resulted in greater price transparency, leading to an increased competition and price pressure;
- The profitability of the courses created, by ensuring that development costs can adequately be covered with a high level of interest in the course by students;
- The revenue dependency to courses requiring updates over time, as it has an impact at profitability level;
- Its capacity to maintain constant overhead costs and continue to generate a significant EBITDA margin;
- Its capacity to mitigate long payment terms of some customers, to limit their impact on working capital and cash-flow generation.
In validating the company’s
business model strengths, its
customer traction and
cost structure efficiency, we helped the Management team in demonstrating strong growth opportunities. The D’Ornano + Co. team also helped the company in refining its valuation working closely with its adviser.