Rapid Market Assessment Underpins $100 Million Deal
A top Private Equity group approached Azurite for due diligence research to assess an exam prep software Target. To answer the deal team’s most pressing questions, Azurite surveyed 650 MCAT/LSAT students, conducted 40+ interviews and delivered a robust insights deck. Azurite’s method of recruiting research participants directly from the market revealed powerful, trustworthy data which led the PE firm to bid on, and acquire the Target. It also provided the backbone to confidently lay out a 100-day post acquisition plan, given that our data and insights revealed a thriving sector and a major opportunity to capture market share among both the LSAT and MCAT audiences.
“Azurite delivered the state of the market and a roadmap for our first 100 days.”
Essential Insights
- After deep assessment of market share and competition, the Client moved forward with an acquisition deal worth $100MM+
- Our market feasibility study revealed pricing feedback that informed critical post-acquisition strategy adjustments
- Respondent Quota: 650 former, current or future candidates with a need to prepare for the MCAT or LSAT
- Azurite delivered a Survey, Interviews & Insights Pack in under five weeks
Finding the Right Respondents
A typical market research firm would find respondents for a similar study via panels and expert networks. That method, however, is hugely flawed because it can’t deliver a respondent set that represents the entire market, from Ivy League through Tier Three students.
Azurite always recruits from the entire market. In this case, that resulted in a statistically significant, market-shaped number of respondents with recent experience preparing for either MCATs or LSATs. The total number of eligible respondents who completed the survey was 650, which is more than 25 times larger than a typical study is capable of capturing.
Data that Impacts Decisions
Azurite’s standard practice of cutting data is powerful when it comes to revealing critical insights, particularly between different populations. There were major differences between MCAT and LSAT test takers, most notably that among repeat test takers, 40% of MCAT users switched to new software, while only 22% of LSAT users did the same. Furthermore, because we recruited significant volumes across all tiers of schools, there were even greater insights identified at a granular level.
One of the most critical elements of feedback from respondents concerned pricing. Azurite’s strategic questions revealed that a significant percentage of the customer base had strong feelings about pricing. They valued the practice exams, but felt the price of the software to be too high. If not for Azurite looking at the data from multiple angles, a crucial sentiment about price could easily have been missed.
Powerful Results
With Azurite’s insights and data in hand, the Client not only felt confident to acquire their Target, they also had a robust understanding of both the market and the customer base. Before the acquisition was even final, the Client was building their roadmap for the first 100 days of business, including important pricing adjustments to the product.
