Financial Modelling for a Private Equity Education Rollup Across Africa.
Private Equity | Sector: Education | Location: Africa
OVERVIEW
A UK-based private equity firm with deep roots in the education sector was executing a rollup strategy across a portfolio of African education institutions. The goal was to acquire multiple assets, centralise core functions, and build a lean, scalable organisation capable of generating meaningful economies of scale.
The client had a basic operational model in place but needed something significantly more sophisticated - one that could withstand external investor due diligence, model individual asset performance with precision, and serve as a living tool for management decision-making.
Ancore was engaged to deliver two core services: financial modelling and company valuation.
RESULTS AT A GLANCE
WHAT WE DID
The engagement was structured across two core service areas, working in close collaboration with the client throughout:
Deep Industry and Market Research - Before building a single line of the model, our team conducted extensive research into the education sector across the specific geographies under consideration. This covered enrollment dynamics, tuition pricing benchmarks, student retention patterns, customer acquisition economics, and the regulatory landscape. This research formed the factual foundation of every assumption built into the model.
Collaborative Model Design - Following our research, we held a detailed scoping call with the client to align our findings with their strategic intent. We walked through how we proposed to structure the model, surfaced gaps between their current assumptions and on-the-ground market dynamics, and agreed on the architecture before any build began. This step alone led to meaningful adjustments to the client's business model.
Cohort-Level Financial Model - We built a detailed, bottom-up financial model that broke down performance by individual institutions and by student cohort. Key outputs included revenue by cohort, retention rates, customer acquisition costs, and contribution margins, all linked to centralised shared functions such as management, compliance, and technology. The model was built to be intuitive, with clearly labelled assumption inputs so the client could stress-test scenarios independently.
Three-Stage DCF and Valuation - We incorporated a full three-stage discounted cash flow model, including implied exit valuation multiples and IRR calculations across multiple scenarios. All three financial statements - P&L, balance sheet, and cash flow were fully integrated and linked throughout.
Weekly Progress Check-ins - Throughout the engagement we held weekly calls with the client to share progress, present interim findings, and flag any new intelligence surfaced during our ongoing research. This iterative approach meant the model evolved in real time alongside the client's thinking rather than being delivered as a finished product at the end.
BUSINESS IMPACT
Client name withheld for confidentiality. Metrics verified internally. Available to discuss on request.
