Experienced entrepreneur gets decisive market assessment

Artemis’s analysis provides clarity on growth prospects for portfolio company

About the Client

The client’s portfolio included a company that provided online training to electricians, HVAC technicians, and plumbers so they could maintain state and local licensing.

Goals

Although the client wanted the portfolio company to achieve scale, he didn’t want to invest a lot of time personally in growing or managing the operation. He wanted to know if the business had the potential to grow its market share to reach $1M in annual revenue.  

Challenges

With competing priorities and business interests, he didn’t have the time to assess the true market dynamics and size in order to make an informed decision.

Solution

The client brought the project directly to Artemis without considering other firms. He trusted Artemis and had worked with the team several times to assess markets and help think through investment theses. In addition, he wanted to work with a team that understood his constraints as an investor and business owner.   

Over the course of two months, Artemis analyzed the size and growth potential within the continuing education space, relevant licensing regulations and trends, adjacent markets, and opportunities for the business to gain market share.

Results

Ultimately, Artemis presented the client with three options: 

  1. Discontinue operating,
  2. Expand geographically into additional states and localities, or
  3. Expand the product line to capture new, faster-growth opportunities.

Based on the client’s goals, Artemis recommended discontinuing operations. Expanding geographically would take too much investment before it could become profitable. Expanding the product line to capture faster-growing adjacent markets could potentially be more lucrative, but it would take more concerted management resources than the client wanted to use.

The client has now turned to Artemis twice to assess market and investment opportunities. Both times, Artemis was able to confirm the challenges he faced and help him come to a decisive conclusion. 

"I trust the Artemis process, the rigor, and the client interactions implicitly."

                                                                                                                                                — PE firm owner