Case Study
Evaluating investment attractiveness of the global contact lens market for a European PE firm
Market due diligence | Investment opportunity assessment | Competitive landscape analysis
Business need
- A European mid-market private equity (PE) firm was looking to strengthen its healthcare portfolio.
- As part of its investment hypothesis, it was looking for market segments with strong mid- to long-term growth potential and significant consolidation opportunity.
- The client had shortlisted the global contact lens market as one of the sub-sectors for carrying out early-phase due diligence.
To assess consolidation opportunities and conduct market due diligence in the global contact lens market.
The client outlined two key reasons for selecting RocSearch:
- Our ability to rapidly deploy experienced and highly pedigreed investment advisory teams.
- Our flexible client-centric engagement models.
Approach and Methodology
- Our investment advisory team conducted an in-depth analysis of the global contact lens market, cutting across end-use applications, material types and major regions. We looked at the key factors that were driving the market historically and some of the major forward-looking trends that were shaping the sector, globally.
RocSearch examined the key trends shaping the global contact lens market and captured critical insights around consumer purchase behaviour.
- We took a deep-dive into the market, characterised by low product differentiation, intense competition and a mature regulatory landscape.
- We tracked the operating market forces, degree of competition, resulting opportunity areas and challenges for investing in this sector.
- Further, we shared insights on the industry-level growth drivers, distribution channels, competitive landscape and a view on the top players in the major European markets.
Business Outcomes
- Our analysis revealed that the market was fairly consolidated with the top 5-6 players constituting nearly 80% of the market.
- While there was intense competition, there were limited acquisition opportunities because of the presence of these large global operators.
- As a result, the client decided to keep the competitive bid for one of the market leaders on its watchlist.
The client decided to retain a competitive bid based on our market analysis.
