Background

General Atlantic, a global private equity investor, was evaluating an investment in Studio Moderna, a leading multi-channel direct to customer business serving 21 Eastern European markets.

General Atlantic asked Transform to support the investment due diligence covering the commercial performance and potential for the Direct Response TV (DRTV) division across 12 key markets.

What we did and how

The due diligence combined a review of the underlying data and business information for the DRTV business to confirm that it was robust. The team then developed an understanding of the overall ROI on media spend for the DRTV business.

This included a market review of the key territories to understand major trends in those markets (competitors, ownership structures, fragmentation of the television market, introduction of new technologies) that may affect the costs, revenues and ultimately the ROI of the DRTV business.

Results

  • A review of the key revenue and costs at a group and territory basis
  • Models of the projected RIO performance based on a number of business scenarios
  • A view of the DRTV market at a macro and territory level including trends in advertising and TV channel environments
  • Individual territory analysis
  • Review of ad planning / booking /performance technology and processes