The Market Evaluation Service (MES) from WCA delivers insightful analyses and pragmatic recommendations.
Many business sectors within the Indonesian economy are poorly documented in respect of market potential, competitive dynamics, regulatory trends, customer segmentation and distribution channel structure. The rapid emergence of disruptive categories such as e-commerce, e-payments and fintech has further complicated the task of assessing new business opportunities in Indonesia.
These are the challenges typically facing intending investors, particularly for those groups without an established presence in Indonesia:
Accurate - and actionable - data about aggregate demand, projected growth trends and customer preferences and is not readily available, and requires interpretation.
Credible benchmarks are difficult to find when comparing the performance and prospects of a target company against peer organizations.
Gaining clear visibility into the commercial and financial condition of Indonesian companies typically requires ‘triangulation’ between a variety of formal and informal sources.
In response to this reality, WCA has developed a Market Evaluation Service (MES) to support intending investors during the critical market validation phase. Our expert local team utilises a vast array of information sources – published and unpublished - to compile customised market analyses and to build proprietary business models on behalf of investor groups. These resources are an integral part of the ultimate Go/No-Go decision-making process for an investment either in a new venture or an established operating company.
Our MES proposition adopts a structured six-step process in appraising a market opportunity in Indonesia on behalf of venture capital companies and private equity firms.
1. Discovery
We conduct in-depth discussions with the investor in order to understand the existing investment thesis and/or top-line business plan that underlies the prospective investment. This culminates in the definition of the scope of work, comprising the detailed specification of the market analysis activity; the parameters for building a business operating model; resource requirements; roles and responsibilities; and the overall timeline.
2. Situation Assessment
WCA conduct a rigorous evaluation to substantiate the strategic, commercial, technical, financial and regulatory components of the proposed investment – explicitly within the context of the Indonesian market.
Our evaluation includes both supply-side and demand-side elements such as the competitive environment, customer segmentation, product and service innovation and distribution network economics. We utilise a comprehensive in-house market intelligence library in conjunction with depth interviews, focus groups and consumer panels to undertake this phase of the work.
3. Business Modelling
Our analysts construct a multi-layered business operating model which spans the entire scope of the proposed investment – ranging from total market size and penetration levels through to a detailed P&L statement for the entity.
We are fanatical about the quality of the key assumptions that underly the business model, and actively seek the buy-in to our projections from all stakeholders. We continue to ‘run the numbers’ through multiple scenario analyses and stress tests, as new data points emerge. In turn, this ensures the validity and veracity of the final model output.
4. Strategic Analytics
Utilising the outputs from the Situation Assessment and Business Modelling phases of the work, WCA compiles a thorough and candid evaluation of the opportunity open to the investor - both from a tactical and a strategic standpoint. The output is based on the combination of our extensive cross-sector knowledge and the informed insights derived from our analysis and modelling work. We also provide a pragmatic and actionable go-to-market roadmap as an illustrative guide for the investor.
5. Final Submission
WCA submits the findings of the entire process in a summary report to the investor, as a pre-cursor to the Go/No-Go decision point. Our aim is to provide an independent, investor-centric, analytically-robust recommendation to the Investment Board or the principals of the firm.
By collaborating closely with the key stakeholders throughout each phase of work, we aim is to secure general consensus and to ‘avoid surprises’ at the end-point of the process. This is the acid test of the added-value contributed by WCA.
6. Go/No-Go Decision
The Market Evaluation Service from WCA culminates in the final determination being made by either the Investment Board or the senior leadership team of the firm, based on the report submitted by WCA. We participate actively is this phase in order to ensure that all stakeholders understand the basis of the decision and that the short-term and medium-term business implications are made clear.
Want to know more about working with us in Indonesia?
Please feel free to contact our Jakarta office directly.
Don’t delay, our team of market evaluation specialists is ready to discuss your requirements today!
Incidentally, the Market Evaluation Service (MES) described above is a sub-set of our newly-launched offering for investors, which we call 'Integrated Execution Service’ (IES)'.
One of our long-held beliefs at WCA is that the selective outsourcing of existing investment-related processes - such as the stewardship of exit-critical work programs - will maintain your leverage and visibility within the ventures and/or portfolio companies that you may hold in Indonesia.
Our activities span the entire investment cycle and comprise market evaluation, due diligence, business plan formulation, management team alignment, enterprise-wide communications and continuous work program management.
We have designed our 'Integrated Execution Service’ (IES)' offering with a view to assisting you and your team in maximizing your exit valuations. Our approach comprises two components:
rigorous up-front business planning and work program specification
the implementation of a high impact, low maintenance Program Management Office (PMO) capability.
Simply put, we convert your investment thesis into pragmatic and value-added execution programs, which we then manage diligently on your behalf - from inception through to exit.
And we are not passive ‘scorekeepers’ - we are proud to characterize our workstyle as ‘activist and interventionist’.
We deploy dedicated local resources in Indonesia to act as your on-the-ground representatives. Our intent is to ‘avoid surprises’ by managing problems as they arise and resolving critical issues proactively.
Want to know more? You can read about our customised IES offering. Better yet, please feel free to contact our Indonesia office directly.
Don’t delay, our team in Jakarta is ready to discuss your requirements today!