The client, a listed US-based FinTech firm wanted the TresVista team to conduct research on the Digital Payment industry’s presence across the requested geographies and, present each region’s macroeconomic/demographic data, industry-relevant trends, regulatory landscape, determine priority regions and identify potential targets for such geographies. The client also wanted the team to create an industry landscape for the priority regions and profile their potential targets highlighting competitive edges, determining the corporate network integrations, and reviewing regulatory advantages to aid to the dealmaking process.
To create a geography-focused industry and target research, leading to further deal involvement via investment memos, comps, and product analysis.
The TresVista team followed the following process:
The major hurdles faced by the TresVista team were:
The TresVista team overcame these hurdles by leveraging several user metrics (MAUs, Total Users) as an alternative to evaluate the potential targets (EV/MAU and EV/Total Users). Additionally, the team executed a LinkedIn search with relevant filters (primarily employee count, along with broad industry & geography filters) to determine players with offerings similar to that of the potential targets. Larger market players were identified, and their historical fundraising rounds were incorporated as proxies for the EV/User comps, post matching their past users with the target’s current users.
The TresVista team added value by developing contextual processes/trackers for regulatory info and competitive benchmarking (investment memos, competitive benchmarking, target profiles, regulatory information, industry trends, public, M&A, and private funding comps and strategic rationale for acquiring/investing in/partnering with potential targets) which supported the client’s investment.