Case Study

Unlocking key insights for due diligence

  • Private Equity
  • Multi-sector
  • Global

A large, APAC-based internet auction and classifieds website offering members access to general items as well as property and job listings was growing exponentially and receiving significant interest from investors. By the end of Q1 2019, it was the fourth-most visited website in its country, boasting a 76% market penetration rate. A global private equity firm with more than $50 billion in fund commitments since inception, expressed interest in purchasing the business and engaged Third Bridge to support their due diligence process.

We work with a variety of advisors throughout the due diligence process, but Third Bridge ranks among the top in adding the most value. They helped us dig deeper to uncover what was necessary to complete such a complex transaction.

Investment Professional, Leading Private Equity Firm

Research Insight

The Third Bridge Connections team, operating under a tight timeline given the competitive bidding environment, mapped the entire value chain of the business and identified experts that could address key questions affecting the investment thesis. These questions included but were not limited to, the competitive landscape, local dynamics and company-specific strategy data. Our experts provided unique insights on the marketplace and classifieds segments, looking at the business’s position within that ecosystem, covering topics such as growth drivers, expansion strategy, main competitors and high-level local dynamics.

Within one week, Third Bridge had sourced 48 experts for private consultations, including 26 first-time consultants recruited due to their in-depth knowledge of key nuances related to the company and market. These consultants included former employees who could:

  • speak to the different platform products and tools used to run the business units;
  • provide an overview of their marketing budget and the ROI of the various advertising activities; and
  • deliver unique insights on competitors, partners and product users who could compare competing platforms and discuss local market dynamics.

Outcome

During interviews with Third Bridge’s experts, investment professionals working on the due diligence discovered that the company had a highly defensible position against the competition and was poised to sustain or grow its existing market share. Through the research and insights established through their engagements with Third Bridge, the firm proceeded with greater conviction and confidence in the valuation and sustainable competitive advantage of the company. 

The deal was successfully closed in 2019 for ~$2bn USD. Third Bridge played a critical role in the closing of the transaction, by providing in-depth, differentiated perspectives from experts located in dispersed global locations.