Due Diligence Support of an Acquisition

Situation #1 

A large medical device company with multiple divisions was considering the acquisition of a UK based company with a product portfolio that would have applications in several divisions. Our team helped them gain a competitive assessment of market positioning and customer perceptions.

Situation #2

Our client was considering the acquisition of the target company; a private, well-established manufacturer of biologically based products. Our client needed third-party validation of market forecasts for the target's primary product and three additional biologically based products in development. Medi-Vantage helped the client obtain this critical information to reduce acquisition risk.

Critical Questions to Address: 

• What are the macro trends impacting the industry for the biologically based products? Are patents in this space viable?
• What patient segments are candidates for receiving these biologically based products?
• How will the competitive landscape for all four products be expected to change over the next 5 years? Will alternatives emerge? How will this affect pricing and market share?
• Are the forecasts by the target acquisition realistic?
• What obligations is the client assuming?
• What is the type and extent of the target company’s liabilities, possible problem contracts, litigation risks and intellectual property issues?

Medi-Vantage Methodology

Working with the diligence team, Medi-Vantage accompanied the team to the target company headquarters to review marketing materials, contracts, forecasts and all other relevant materials.

In addition, our team performed an extensive set of in-depth interviews with Key Opinion Leaders and mainstream physicians across multiple clinical specialties to determine use patterns and competitor strengths and weaknesses. Our team developed a ten-year global revenue forecast for each of the four products.

Results

The Medi-Vantage team concluded that the target company would continue to thrive in the marketplace, especially with the expected synergies of combining the complementary competencies of the two companies.