Assessment of an Investment into a K-12 Education Group

CIGP successfully performed an independent assessment for its client on a potential private investment into a US-based education group offering K-12 education mainly in the United States.

Transaction Highlights

CIGP completed an independent assessment for its private client on a potential investment into a US-based education group operating more than 40 schools across United States and around the world. CIGP assisted in providing business review, financial analysis, preliminary valuation while reviewing the commercial terms of the investment opportunity.

The target company is a full stack school operating platform covering full time and part time programs globally. The programs offer continuous courses from infant care through high school, supporting children in person or through virtual classes. It also provides services including nanny placements, residential micro schools, as well as indirectly through software services to public and private school partners.

Role of CIGP

Business plan review: CIGP critically assessed and challenged the target’s business plan, its assumptions and revenue drivers, through business review, management calls, market research and sensitivity analysis.

Preliminary valuation: CIGP performed preliminary valuation using comparable companies and precedent transactions, as well as discounted cash flow using projected cash flows provided by the target, to provide an indicative valuation range for the client.

Investment assessment: CIGP navigated the client through the overall investment assessment process, including structuring of key assessment procedures, requesting essential information from company management, taking lead during management calls, reviewing documents in the data room, building investment assessment report, and highlighting the key decision points regarding the investment with the client.