A PE Client seeking to invest in a private healthcare group in Sri Lanka engaged Stax to conduct a market diligence.
The Target was considering establishing a hospital in a district outside of Colombo and was interested in understanding demand for private healthcare services in and around the area.
Our study included a macro overview of the healthcare industry, a bottom-up sizing of the Sri Lankan diagnostics market, an assessment of the dynamics of hospitals and diagnostic labs in key districts, and a competitor benchmarking.
Over the course of ~2.5 weeks, we conducted ~120 telephone and in-person interviews with doctors, nurses, auxiliary staff, and government officials. In addition, we conducted a web survey with ~200 customer respondents.
Our market diligence assisted the Client in making an informed decision about their investment.
Our findings informed the Client of high growth districts that are best aligned with the Target’s value proposition. Furthermore, through the customer survey, we were able to advise the Client on areas such as average spending on private healthcare and most common diagnostic tests.
We also provided the Client with easily comparable competitor profiles for benchmarking.