A private equity firm was evaluating a significant investment in a regional hospital chain targeting Tier 2 and Tier 3 markets in South India. The fund required an independent demand assessment, competitive landscape analysis, and patient willingness-to-pay study to stress-test the target company’s financial projections before finalizing the deal.
Research Approach
Robas Research conducted a comprehensive demand-side assessment combining secondary research on healthcare infrastructure gaps with 1,000 household surveys across 8 Tier 2 and Tier 3 cities, supplemented by 30 interviews with general practitioners, specialists, and healthcare administrators in the target markets.
Insights Generated
- Healthcare demand in the target geography was significantly underserved, with out-of-pocket expenditure data confirming strong willingness to pay for quality secondary and tertiary care
- The primary competitive threat was from government hospital capacity expansion, not private-sector competitors
- Patient willingness to travel up to 60 km for quality care validated the hub-and-spoke model proposed in the investment thesis
Business Impact
The research independently validated the core investment thesis and provided the PE firm with the demand evidence required to support their investment committee presentation. The study also surfaced two specific service areas—maternity and orthopedics—where the demand-supply gap was most acute, enabling the fund to incorporate these as priority capability development areas in their value creation plan.