Commercial / Business Due Diligence (CDD)

Education

Abstract

We run Commercial / Business Due Diligence for education investments and partnerships. In 2–4 weeks, we validate market demand, competitive position, pricing & unit economics, go-to-market/admissions engine, retention & cohorts, regulatory context, and forecast quality. You get a clear red-flag view, scenario-tested model inputs, and a value-creation roadmap for the first 100–180 days.

Who this is for

  • Investors & lenders (angels, VC, growth/PE, family offices, banks/NBFCs)
  • Strategic buyers/partners evaluating M&A/JVs
  • Promoters & boards seeking an objective view before committing capital

When to use CDD

  • Pre-term sheet / pre-IC to shape valuation and asks
  • Confirming a thesis before exclusivity
  • Stress-testing a fund-raise or sale narrative (sell-side readiness)

Outcomes & decisions you’ll make

  • Go / No-Go / Re-price with evidence
  • What to fix before close (and what to monitor post-close)
  • Where the growth headroom actually is (and what it takes to win it)
  • Realistic ramp, CAC/payback, and margin expectations

Scope of work (what we cover)

  1. Market & Demand Validation — TAM/SAM/SOM, growth drivers, seasonality, price bands, parent/student/institution willingness-to-pay (or enterprise budgets).
  2. Customer & Stakeholder Proof — Rapid interviews/surveys with parents/students, schools/universities, agents/counsellors, enterprise buyers; NPS/CSAT signals and switching barriers.
  3. Competition & Positioning — Mapping by segment/board/program; differentiation, moats, substitution risk; pricing and feature parity.
  4. Product/Program Fit — Outcomes promised vs delivered; curriculum/regulatory fit; roadmap realism; implementation friction (onboarding, PD/training, success/support).
  5. Pricing, Unit Economics & Cohorts — Price architecture, discounts/scholarships, channel incentives; LTV/CAC, payback, cohorts by geography/segment; churn & expansion.
  6. GTM / Admissions & Sales Engine — Lead flow (owned/paid/partner), funnel conversion (lead→visit/demo→apply→admit→pay), agent/counsellor/channel governance; pipeline quality and forecasting.
  7. Operations & Capacity — Staffing model, utilisation (classrooms/faculty/LAs), SLAs, ERP/LMS footprint, service quality variance across locations.
  8. Regulatory & Compliance (high-level) — Relevant board/regulator context (CBSE/ICSE/IB/CAIE; UGC/AICTE; jurisdiction-specific rules). We coordinate with legal counsel; this is not a legal opinion.
  9. Financial Bridge & Forecast Quality — Bridge historic to plan; test key drivers (ramp, pricing, productivity, collections); sanity checks vs peer benchmarks.
  10. Risks & Sensitivities — Red/Amber/Green (RAG) risks, mitigation options, scenario tests (admissions ±X%, pricing ±Y%, cost inflation).
  11. 100–180 Day Value-Creation Plan — No-regret moves; KPI pack; governance rhythm; quick wins vs foundational fixes.

Tracks we specialise in

A) EdTech (B2C/B2B/B2G)
  • PLG vs sales-led motions, reseller/partner economics
  • App store/web funnels, cohorts, retention, paywalls, refunds & support
  • Enterprise/campus pipeline quality, deal hygiene, security/IT basics (checklist)
B) K-12 Institutions / Groups
  • Catchment demand, fee bands, enrolment ramps, admissions engine health
  • Teacher/leadership staffing, PTRs, service quality, transport/safety basics
  • Compliance/affiliation posture (high-level), capex/opex realism
C) Higher-Ed / TNE
  • Program portfolio fit, admissions calendar, agent networks
  • Partnerships (twinning/joint/dual, articulation), student services readiness
  • Recognition/quality assurance context (overview; with counsel for formalities)

What you receive (deliverables)

  • CDD Report (PDF): executive summary, findings by workstream, RAG risks, management responses, and clear recommendations
  • Assumptions & Scenarios Pack: driver sheet for ramp, pricing, CAC/productivity; downside/upsides
  • Funnel & Cohort Diagnostics: conversion ladder, channel mix, LTV/CAC/payback tables
  • Customer/Stakeholder Voice Deck: anonymised quotes & stats
  • Data Room Checklist & Gaps Log
  • 100–180 Day Value-Creation Roadmap (owners, cadence, KPIs)

Data we request (illustrative)

  • Enquiries → admits → fee-paying by month; channel/source tagging
  • Pricing/discounts/scholarships; agent/reseller terms
  • Cohort retention, refunds, credits; collections ageing
  • Headcount by function; SLAs & utilisation; core vendor/IT list
  • Policy docs (admissions, refunds, service), affiliations/approvals (if applicable)

Method & cadence (how we work)

  1. Kickoff & data room → request list, stakeholder map
  2. Rapid customer/partner work → interviews/surveys & shop-tests
  3. Analytical sprints → market + competition; cohorts + unit economics; funnel + pipeline
  4. Management Q&A → challenge/clarify assumptions
  5. Readout → CDD report + scenarios + value-creation plan

Indicative timeline: 2–4 weeks (deal-dependent) with weekly check-ins and a mid-engagement playback.

FAQs

CDD tests the business reality—demand, competition, pricing, unit economics, funnel, and plan quality. Financial DD audits the numbers; legal DD covers contracts, licenses, IP, and compliance. We coordinate with those advisors and feed them our findings.

Yes, but not simultaneously on the same asset. We run conflict checks and work only on one side per mandate.

Yes—on request. For EdTech, we test onboarding and support; for institutions, we perform structured visit checklists.

Yes—consent-based interviews/surveys plus sample quality checks; we never spam.

Yes—we provide driver updates and scenarios for your model (or build a compact driver model if needed).

Happily—we do a focused readout with Q&A and stay available through close.

Evaluating an education asset or partner?

Let’s scope your Commercial / Business Due Diligence mandate.

Write to aurobindo@raysolute.com or call +91-9891321279.