Management of one of the leading global companies in the for-profit university sector believed that the stock market undervalued their growth prospects, and looked to engineer a buyout to take the company private.
Parthenon was hired by a syndicate of investors to conduct market diligence and assess management's growth projections.
Parthenon Action
Analyzed the unit economics of buying and operating international universities, including identification of key levers for profit growth
Assessed the potential for further expansion within key Latin American markets
Identified additional countries for new university acquisition, after developing process and criteria for screening key market attributes
Evaluated the potential for further profitability growth in the US online university market, given underlying growth trends and rising cost pressures
Developed detailed financial guidance for investors based on market trends and company positioning
Outcome
Parthenon identified substantial growth opportunities, based on rapid underlying growth of international markets and unparalleled competitive positioning.
Using Parthenon's findings, management succeeded in raising more than $3 billion from 10 different equity partners to take the company private.
