Stress Testing an Equity Investment Thesis on the Growth Strategy of a Global C2C Marketplace

Challenge
An Asia-based investment management firm sought to challenge assumptions underpinning the market projections and expansion strategy announced by the operator of a global C2C marketplace. The client wanted to gain an independent industry-led assessment of how this online marketplace player stacked up against the competition, and its potential expansion into new markets. In particular, it wanted to connect with senior executives at top marketplace companies in North America to understand key growth drivers and their competitive advantages and disadvantages.

The GLG Approach
The client partnered with GLG for a six-week research project to design and conduct in-depth interviews with executives across the online marketplace industry, including ten custom-recruited GLG experts, complemented with extensive research to corroborate project findings and analyze various industry metrics.

To lead the engagement, GLG appointed a former senior executive of a leading online marketplace provider with strong experience in defining and executing e-commerce business and monetization strategies in North America and Europe.

Outcome
The GLG team delivered a comprehensive report with unbiased findings and scenario analysis, highlighting competitive insights, opportunities, investment requirements, and relevant operational metrics. The findings validated the client's long-term hypothesis and offered valuable insights about its growth strategy.