How we… Evaluated an Online Executive Education Provider for Acquisition by Private Equity

The Challenge

A private equity firm specializing in revitalizing distressed startups had the opportunity to acquire an online executive education provider. The provider had developed high-quality courses in partnership with leading global universities and had received positive reviews. The uniqueness of the courses stemmed from engaging pedagogy and an innovative analytics platform. However, the company faced a financial imbalance as costs outpaced revenues. The private equity firm needed an in-depth analysis of the long-term commercial viability and short-term stabilization opportunities of the company to make an informed investment decision.

The Result

Horizon Now was engaged to carry out a comprehensive strategic and operational review of the potential acquisition. The strategic review included market analysis, growth strategy development, and assessment of the analytics platform, while the operational review evaluated the efficiency and effectiveness of business operations, financial health, product quality, technology scalability, and customer feedback. This robust analysis helped identify opportunities for expansion, quick wins for product improvement, and potential short-term enhancements in the go-to-market process.

The Solution

The analysis carried out by Horizon Now revealed that the costs of acquiring and growing the provider would outweigh the benefits. Armed with the insights from the in-depth review, the private equity firm confidently decided against acquiring the business. Despite not proceeding with the acquisition, the confidence instilled in the investment partners by Horizon Now's detailed analysis made it a valuable exercise, ensuring the right decision was made based on comprehensive data and insights.